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Outsourcing Framework Assignment
Intent: To provide the company and practitioners with tools and guidelines for addressing both domestic and multi-national sourcing needs. This outsourcing methodology consists of three activities covering the assessment, procurement, implementation, and ultimate maintenance of an arrangement between the company and their outsourcing vendors.
Section 1: Step-by-Step Framework
A. The summary of tradeoffs to meet its business and financial goals through the next five years, the company needs to leverage technology advances, changes in the regulatory environment, cost reduction opportunities resulting from privatization of service vendors abroad and the proliferation of the information technology by transforming its photo equipment and chemical lines along with current customer service implementation into a highly responsive globally integrated configuration while using its buying power to decrease costs.
Framework will mandate tactical design, provisioning, deployment, bill consolidation and payment operations and maintenance for companies photo copiers and related equipment and will be the primary focus for evaluation in order to identify opportunities to reduce costs, improve service delivery, introduce new services currently not outsourced and add the flexibility necessary to favorably position company in its competitive marketplace. The methodologies anticipate the requirements for information technology by recognizing and structuring the interplay between technology, operational and organizational factors. These tools address the challenge of developing effective solutions by balancing the consideration of the whole set of factors faced in their design, implementation, and operations.
Teams will focus on analyzing how market and technology changes may impact company costs related to the products and services defined in its global marketing strategy and identified as part of the scope of the program. Among key areas to be analyzed, market deregulation, chemical and hazardous material removal, equipment manufacturer privatization, technology advances and the progress in the development of global alliances will constitute the primary subjects of our analysis.
Phase 1: Discovery: Assess the current global photo, chemical, and services environment and costs; Identify areas of opportunity for cost reduction and optimization, service delivery improvements and contract/tariff renegotiations; Formulate specific recommendations for a photo copier service delivery model and associated outsourcing scenarios to meet companies financial and business goals through to the next five years.
Phase 2: Decision: Evaluate the outsourcing options that best meet companies organizational and contract requirements.
Phase 3: Implementation: Select one or more service provider(s), negotiate contract(s) and transition from current state to desired state.
B. Phase 0: Establishment of the Program Team
The objective of Phase 0 is to validate the program objectives and scope, to establish the Program Team structure and organize the Program Office
Step 0.1.1 Validate Objectives and Scope Engagement
Step 0.1.2 Deploy the Program Team and Organize the Program Office
Step 0.1.3 Communicate Program Objectives and Organization to Key Program Stakeholders
PHASE 1: Discovery
The primary objective of this phase is to help the company develop an assessment of its current photo, chemical, and services environment taking into consideration the key dimensions.
Step 1.1.1 Finalize the list of products and services and measurement metrics
Step 1.1.2 Finalize site and representatives’ lists
Step 1.1.3 Develop and distribute a survey kit
Step 1.1.4 Conduct company technical staff interviews
Step 1.1.5 Conduct business unit representatives’ interviews
Step 1.1.6 Conduct site visits
Step 1.1.7 Organize company current global photo equipment environment data
Step 1.1.8 Research relevant industry information
Step 1.2.1 Analyze and assess company information technology cost management
Step 1.2.2 Analyze and assess company service delivery model
Step 1.2.3 Current contracts and tariffs assessment
Step 1.2.4 Assess opportunities
Step 1.2.5 Develop the company global information technology framework assessment report
Step 1.4.1 Review current environment assessment findings
Step 1.4.2 Prepare and conduct workshops
Step 1.4.3 Develop final recommendations related to outsourcing configuration(s)
Step 1.4.4 Present recommendations
Step 1.4.2 Workshop Materials
Step 1.4.3 Recommendations on Outsourcing Configuration(s)
PHASE 2: Decision
The objective in the Decision phase is to assist the company Program Team in procuring the service components required by the recommended outsourcing configuration(s).
Step 2.1.1 Develop a high-level preliminary draft outline of the RFP
Step 2.1.2 Develop the information technology outsourcing service requirements
Step 2.1.3 Develop RFP
Step 2.1.4 Determination of the evaluation criteria
Step 2.1.5 Identify qualified bidders
Step 2.3.1 Initial RFP response analysis
Step 2.3.2 Best and Final offer analysis
Step 2.3.3 Negotiation strategy definition
Step 2.3.1 Initial Clarification Questions
Step 2.3.2 Invitation to Best and Final Offer
Step 2.3.3 Negotiation Strategy
PHASE 3: IMPLEMENTATION
At that stage, the company management’s role will be to work with the staff within the transition teams set up to organize, facilitate and/or support the transition with the finalist(s).
Step 3.1.1 Team organization
Step 3.1.2 Transition planning public relations
Step 3.2.1 Assist in the finalization of outsourcing configuration financials
Step 3.2.2 Assist in the final contract terms and condition negotiation(s)
Step 3.2.3 Assist in the finalization of vendor management processes
Step 3.2.4 Assist in the finalization of company account support
Step 3.2.5 Assist in the finalization of architecture & operations issues
Step 3.2.6 Assist in the finalization of Human Resources transition
Step 3.2.7 Assist in the implementation of the signed contract(s)
Section 2: Strengths and Weaknesses Discussion
The following discussion elaborates on the perceived strengths and weaknesses of my
framework.
Because outsourcing does not automatically reduce IT operating costs, are there right reasons to outsource? Outsourcing is a viable strategic alternative for IT divisions, departments, or organizations. Although cost reduction remains the primary assumption underlying many outsourcing contracts, actual savings are realized only under specific circumstances (e.g., highly inefficient IT operations, asset procurement economies of scale, remote site support). Given outsourcer cost structures, outsourcing vendors must be at least 25% more efficient (e.g., productivity, economies of scale) simply to match internal IT operating costs.
Know your business. IT management cannot implement effective IT services without first understanding the business objectives that the IT services should support (or enable). The IT strategy should detail these services alongside desired business objectives.
While there are no right answers for outsourcing decisions, there are common threads that pervade many IT organizations. For example, many companies successfully outsource PC life-cycle services (e.g., procurement, installation, moves, adds, changes, retirement), since desktop services can be highly standardized. Desktop services are commodity in nature (i.e., similar process and products among vendors), significantly reducing the risk of poor vendor performance. Again, companies that have successfully outsourced these functions either started off with a solid understanding of the process or spent significant time working with a vendor to implement a new process and then tune it. Many of the organizations reporting less than satisfactory results in this area started with poor processes and assumed that the vendor would automatically instill best practices.
Section 3: Analysis
Bibliography
N/A
Word Count: 1100
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