Structured Approach to Implementing and Operating Outsourcing and Managed Services for Suppliers and Outsourcing Organisations

Alan McSweeney

Objectives

Describe at a high-level a structured approach to implementing outsourcing/managed services from both service provider and end-user organisation

April 3, 2011

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Scope

Provide a high-level view of a common set of processes to be used by service providers and end-user organisations to implement and operate an outsourcing/managed services arrangement

April 3, 2011

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Topics

Introduction
− − − − Overview Risks and Lessons Learned Principles of Outsourcing and Core Competencies Phases of Outsourcing Relationship

Outsourcing for Service Providers
− Phases of Outsourcing Relationship − Key Issues For Successful Outsourcing − Key Capabilities and Constituent Practices

Outsourcing for End-User Organisations
− Outsourcing Challenges − Key Issues For Successful Outsourcing − Key Capabilities and Constituent Practices
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What is Outsourcing?

Outsourcing is delegating the responsibility for performing an information technology or business function to a third party You outsource because the outsourcing supplier will do:
− What the organisation currently does − At the same or better level of performance − For the same or lower price

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Potential Advantages of Managed Services

Better Use of Staff: allows agencies to focus human resources on strategic planning and core mission support Cost Savings: choose not to build and support IT and network infrastructure available in the commercial sector; use limited capital to purchase needed service levels and reduce total cost of ownership Ability to Use Optimal Technologies: adjust types and mix of hardware, software, skilled labour, capital investment and technology to support changes in mission needs Rapid Response to Organisation and Business Changes: supplier is measured by ability to produce solutions
April 3, 2011 6

over time. cost reduction. as compared with their competitors. changing the very basis on which an organisation competes • • April 3. resulting in movement toward defined business goals Transformational (Make me Money) arrangement is characterised by a partnership between the service provider and service recipient that is focused on innovation and new business. 2011 7 . will improve.Types of Outsourcing Arrangement • Efficiency/Utility (Make it Cheaper) arrangement outsourcing focuses primarily on cost control and. The organisation’s performance. with the goal of maintaining consistency in the delivery of services Business Enhancement (Make it Better) arrangement is about business productivity.

2011 8 . contractoroperated) or COCO (contractor-owned. security. capacity. resources. contractor-operated) model and is largely based on client preference April 3. availability. processes. service continuity and other requirements as it relates to the specific service • Because this is a core competency. tools. resulting in the best overall value for the client − Cost effectiveness is typically achieved through instituting process standards and establishing and supporting a standard operating environment (SOE) consisting of COTS (Commercial Off the Shelf) services and solutions • Managed services can be delivered either in a BOCO (Business-owned.Benefits of Managed Services • Managed Services offers an alternative approach for a client to acquire IT or telecom support services − Managed services solutions are designed and delivered by service providers according to a predefined statement of deliverables and generally includes end-to-end service. and metrics. service level agreements. and assets (if desired) • • A managed service typically includes monthly recurring service-based pricing offering a more predictable cost approach for the client Ongoing visibility of operational performance is provided and managed through pre-agreed performance parameters (known as service-level agreements) − The client may include their unique performance requirements such as degree of control and visibility. the service provider is able to optimise the best balance of facilities.

Outsourcing Organisations .Developing a Vision for IT Services is Required What do we do today? • What do our customers want us to do? • What changes do we need to make to align with our customers needs? • How will they pay for those services? • How will we deliver those services consistently and measure their delivery? • What kind of organisation (Governance/Contract Management/Structures/Staff/Skills/Service Providers) will we need to achieve it? • What service management processes we should use? • April 3. 2011 9 .

Reasons Organisations Outsource Reduce And Control Operating Costs Improve Company Focus Gain Access To World-Class Capabilities Free Resources For Other Purposes Resources Not Available Internally Reduce Time To Market Take Advantage Of Capabilities Accelerate Reengineering Benefits Share Risks Function Difficult To Manage Or Out Of Control April 3. 2011 17% 16% 12% 12% 8% 6% 6% 4% 3% 3% 10 .

2011 11 • • • • .Outsourcing Experiences • 13% to 25% of outsourcing contracts are brought in-house within the first two years Buyers replace 80% of their service contractors in the first three years Contractors turn over 40% of their contracts each year. on average Nearly 70% outsourcing organisations feel their service provider does adequately understand what they are supposed to do Not good April 3.

Key Issues For Successful Outsourcing • Many outsourcing relationships fail. are terminated early. are unsatisfactory to either or both of the service provider and the client Outsourcing is a business issues and should be treated as such Many common issues. 2011 12 . problems and concerns arise across outsourcing contracts Learn from the issues to avoid them • • • April 3.

Hidden Costs of Outsourcing • Transfer of knowledge − Processes and procedures − Documentation − Personal knowledge • Quality issues and their resolution − Inspection programmes − Sustaining quality programmes − Cost of rework • Communication − Poor customer service − Daily operational issues April 3. 2011 13 .

2011 14 .Cease's Law on the Nature of the Firm • • • • A firm will tend to expand until the cost of organizing an extra transaction within the firm become equal to the costs of carrying out the same transaction on the open market This means when it is cheaper to buy the service externally it will generally be bought externally However there is an assumption of perfect knowledge and perfectly rational use of this knowledge to achieve the most logical solution In reality this perfection is rarely if ever achieved − Other less rational factors affect the decision • • • • • • • • Everybody Else Is Doing It I Want To Do It So It Appears On My Resume I Like New Technology Vendors Keep Talking About It I Need One Good Idea To Stamp My Mark On The Organization It Will Solve All My Problems I Hate Dealing With IT I Do Not Want to Setup a Large IT Function • Cost estimates are rarely accurate − What we know about most projects is that they either or both overrun on costs and deliver less than expected − Cost overruns are generally caused by a mix of errors in the initial cost estimates and deliberate distortions in order to cause the decision to be made April 3.

2011 15 . quality assurance and supervision overhead Implementation and termination costs Loss of flexibility Loss of integration between applications and data Data extraction costs Security framework implementation • Transition to utility computing model requires full knowledge of costs – current and future • Note that anything can be outsourced except the management of what is outsourced April 3. there are costs for preparing. entering into and monitoring the execution of all kinds of contracts as well as costs for implementing allocation and tracking measures for the contracted services When internal transaction costs become greater than the costs of externally sourcing the service.Transaction Costs • • • Along with production costs. the service will be obtained externally There are hidden costs associated with sourcing a service externally − − − − − − − − − − − − Selecting the wrong supplier Costs of writing contract Costs of enforcing contract Having a poor service contract that results in hidden cost and/or reduced service Overlooking personnel issues Loosing control over the outsourced activity Management.

2011 16 .Outsourcing Planning • Structured approach can form the basis for an outsourcing implementation plan for both service providers and for companies performing outsourcing April 3.

2 Personnel Transferred In • 1.Sample Service Transfer Plan – Outsourcing Service Provider • • Plan subset Based on activities − 1 Service Transfer • 1.3 Service Continuity April 3. 2011 17 .1 Resources Transferred In • 1.

3 Demand Identification • 1.2 Outsourcing Criteria • 1.Sample Service Transfer Plan – Outsourcing Organisation • • Plan subset Based on activities − 1 Outsourcing Opportunity Analysis • 1. 2011 18 .1 Define Current State • 1.4 Outsourcing Options April 3.

2011 19 .Where Outsourcing Problems Happen • • Inadequate Preparation = Problems Start Here Flawed Service Provider Selection = Project Failure Starts Here Unclear Contract = Conflict Begins Here Wrong Performance Measurement = Management Failure Starts Here Ineffective Ongoing Management = Service Delivery Problems Start Here • • • April 3.

2011 Concentration/Systemic 20 .Risks in Outsourcing – Lots of Them Outsourcing Risks Strategic Reputation Compliance Operational Termination Financial Country Contract Access April 3.

Strategic Risks • Outsourcing provider may conduct activities that are inconsistent with the overall strategic goals of the outsourcer Outsourcer fails to implement appropriate and effective oversight of the outsourcing provider Outsourcer has inadequate expertise to oversee the outsourcing provider • • April 3. 2011 21 .

Reputational Risks • • Outsourcing provider delivers a poor service Outsourcer’s customer service does not meet expectations in areas serviced by outsourcing provider Outsourcing provider practices do not comply with stated practices of outsourcer • April 3. 2011 22 .

2011 23 .Compliance Risks • Outsourcing provider does not comply with relevant laws and regulations Outsourcing provider does not comply with consumer laws Outsourcing provider has inadequate compliance systems and control • • April 3.

Operational Risks • Outsourcing provider experiences technology failures that impact outsourcer Outsourcing provider has inadequate financial capacity to fulfil obligations and/or provide remedies in the event of failure or breach Outsourcing provider experiences fraud or error Outsourcer experiences difficulties or high costs in undertaking inspections • • • April 3. 2011 24 .

2011 25 .Termination Risks • Outsourcer has no exit strategy are not in place because of from over-reliance on one provider or the loss of relevant in-house skills Ability to return services from outsourcing provider is difficult. time-consuming or costly because of a lack of staff or loss of intellectual capacity • April 3.

Financial Risks • Inadequate cost controls and charging mechanism leads to unexpectedly higher costs for outsourcer Changes to services requested from outsourcing provider are very expensive • April 3. 2011 26 .

Country Risks • • Outsourcer cannot enforce contract Incorrect selection of applicable legal jurisdiction April 3. 2011 27 .

2011 28 .Access Risks • Outsourcing arrangement negatively impacts ability to provide accurate and timely information There is an additional layer of complexity in understanding activities of the outsourcing provider • April 3.

2011 29 .Concentration/Systemic Risks • Concentration of services from multiple outsourcers in small number of outsourcing providers can mean lack of control by individual outsourcer and overall systemic risk April 3.

then translate those needs into a set of documented requirements − Successful service providers also recognise that needs change over time and establish provisions for gathering and analysing modifications to their services April 3. 2011 30 . the service provider and the suppliers and partners − Identifying and managing those expectations helps to ensure a common understanding of what is necessary for success • Translating Implicit And Explicit Needs Into Defined Requirements With Agreed Upon Levels Of Quality − Frequent cause of failure in outsourcing is that the service provider does not fully understand the needs of the client − Successful service providers rigorously gather and analyse the stated and unstated needs. • Maintaining Stakeholder Expectations − Common source of failure in outsourcing engagements is a difference in expectations between the client.Lessons Learned from Outsourcing Problems • Smoothly Transferring Services And Resources − Common cause of failure is the ineffective management of the transfer of services and resources to the service provider. leading to service delivery problems − Successful service providers rigorously control the transfer of services and resources to ensure that the new service is able to adequately deliver the service and the service continuity is maintained.

Lessons Learned from Outsourcing Problems • Reviewing Service Design And Deployment To Ensure An Adequate Coverage Of The Client’s Requirements − Failure in outsourcing is caused by the service provider not fully addressing the needs of the client − To ensure that the service delivery will meet the client’s needs successful engagements include rigorous reviews of the service design and deployment activities by the clients and the service provider prior to service delivery • Managing Client’s Security − Managing security and controlling critical data and assets are critical to establishing trust − Security management includes protection of intellectual property. thereby escalating issues as appropriate to ensure that they are addressed in a timely basis April 3. 2011 31 . confidentiality and privacy concerns • Monitoring And Controlling Activities To Consistently Meet The Service Delivery Commitments − Successful service providers rigorously monitor their service delivery activities to ensure that the client’s commitments are being met − Actions are taken to resolve and prevent problems.

Lessons Learned from Outsourcing Problems • Monitoring And Managing Client’s And End User’s Satisfaction − Success is not always defined in terms of meeting the agreed upon commitments. And Security Of Technology − Technology is a key component of outsourcing − Major challenges for the service provider include keeping pace with rapid changes in technology and effectively managing the technology infrastructure while changes are incorporated April 3. Accessibility. because clients and end users may be unsatisfied even when commitments are being met − Successful outsourcing engagements monitor the satisfaction levels of the stakeholders to identify problems and take action • Managing Employee Satisfaction. deployment and service delivery − High employee turnover jeopardises the service provider’s ability to meet its client’s requirements and undermines their expected gains and performance levels − Proactively monitoring and managing employee satisfaction and motivation can improve personnel retention and effectiveness • Managing Technological Shifts And Maintaining The Availability. Reliability. And Retention − IT-enabled outsourcing often involves challenges during transition. Motivation. 2011 32 .

2011 33 . responsibilities and expectations of all parties Need to establish and maintain contingency plans.Principles of Outsourcing • • • • • • • • • Need a comprehensive policy to guide the assessment of whether and how activities can be appropriately outsourced Senior management needs to be responsible for outsourcing policy and related overall responsibility for activities undertaken under the policy Need to establish a comprehensive outsourcing risk management programme to address the outsourced activities and the relationship with the service provider Need to ensure that outsourcing arrangements does diminish its ability to fulfil obligations to customers and stakeholders Need to conduct appropriate due diligence in selecting outsourcing service providers Outsourcing relationship needs to be governed by contract that clearly describes all material aspects of the outsourcing arrangement. including the rights. including a plan for availability and disaster recovery and regular testing of backup arrangements Need to take appropriate steps to ensure that outsourcing providers protect confidential information from intentional or inadvertent disclosure Need to be aware of the potential risks posed where the activities of multiple outsourcers entities are concentrated within a small number of outsourcing providers April 3.

analyse and manage the ongoing relationships with suppliers − Concerned with managing the IT function April 3.Core Competencies for Exploiting Outsourcing and Managed Services for Organisations Selecting Outsourcing • Sourcing – having an effective approach to outsourcing − Concerned with managing the IT function like a business • Supplier Management – plan. 2011 34 .

2011 35 .Sourcing and Supplier Management • Supplier Management competence and associated processes operationalises the strategic decisions taken within the Sourcing competence Sourcing Supplier Management April 3.

Penalties) Sourcing Competence Supplier Selection Contracting Supplier Engagement Supplier Communications Performance Measurement And Monitoring Evaluation Governance and Partner Integration Transition Supplier Risk Monitoring Supplier Development April 3.Sourcing and Supplier Management Procurement of IT Services and IT Hardware/Software Sourcing Competence Strategic Sourcing Decision Supplier Management Competence Order Management (Ordering/ Delivery/ Distribution) Contract Management (Payment. 2011 36 .

2011 37 .Sourcing Competence Planning Cycle Strategy Alignment Objectives and Scoping Sourcing Model Business Case Calculation Organisational Readiness Partner Selection Contracting Transition Partner integration and Governance Reevaluation Sourcing Cycle April 3.

Sourcing Competence • • • • • Define sourcing strategy and sourcing model Evaluate outsourcing potential of IT processes Select optimal partner(s) Manage the transition to selected partner(s) Setting the basis for a successful relationship with selected partner(s) to maximise business value contribution April 3. 2011 38 .

multiple vendor relationship • • • • Calculation of business cases for outsourcing projects The process of selecting the optimal partner(s) Preparation.or outsourced to what extent The decision on what sourcing model is applied − Internal/external − Onshore/nearshore/offshore − Single vs. negotiation.Sourcing Competence Scope • Strategic sourcing decisions on what processes are in. closing and re-evaluation of contracts with selected partner(s) Managing the transition process and setting up requirements for an enduring and successful relationship with partner(s) April 3. 2011 39 • .

Dimensions of Sourcing Competence Measurement Framework

Measure state of Sourcing competence along three dimensions
− Sourcing Strategy − Contracting − Sourcing Execution

Sourcing Strategy

Define facets of each dimension Measure each facet in terms of:
− Associated processes and their state of development − Scope or extent within the organisation
April 3, 2011

Contracting

Sourcing Execution
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Supplier Management Competence

Supplier management is concerned with the execution of the IT supplier strategy and manages the suppliers on an operational basis Supplier management operationalises the strategic decisions of IT suppliers and contracts agreed in the Sourcing competence Effective supplier management provides opportunities for cost reduction from better control of assets and people, as well as value-creation opportunities by supporting IT supplier collaboration and innovation

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Supplier Management Competence Scope
• • • • •

All activities related to managing ongoing (operational) relationship with suppliers and associated systems/ tools Analysis of existing suppliers to identify suitable ongoing engagement strategies at an individual and portfolio level Manage supplier relationship in line with evolving IT strategy Measure and monitor supplier performance from both the organisation’s own perspective and the supplier’s perspective Manage the ongoing external risks (e.g. supplier insolvency) and ongoing internal risks (e.g. unchecked SLAs) derived from the organisation’s relationships with its suppliers Long-term development of suppliers, their products and services to help them improve internally to achieve improved levels of innovation, quality and performance, and to be aligned optimally with the enterprise
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Dimensions of Supplier Management Competence Measurement Framework

Measure state of Supplier Management competence along three dimensions
− Supplier Alignment − Relationship Management − Performance And Risk Management

Supplier Alignment

• •

Define facets of each dimension Measure each facet in terms of:
− Associated processes and their state of development − Scope or extent within the organisation
April 3, 2011

Relationship Management

Performance And Risk Management
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Phases of Outsourcing Relationship

Ongoing

Analysis

Initiation

Delivery

Completion

For outsourcing organisation For both outsourcing organisation and service provider
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Phases of Outsourcing Relationship
Phase Analysis Outsourcing Organisation
Analyse operations and functions to identify those services, processes or functions that could potentially be outsourced and develops the approach to be taken to source the identified opportunities Prepare for and transition to provision of service Provide service and manage and measure its provision Close-out the service after the contract ends or the service has been terminated Management of outsourcing lifecycle Prepare for and transition to provision of service Provide service and manage and measure its provision Close-out the service after the contract ends or the service has been terminated Management of outsourcing lifecycle

Service Provider

Initiation Delivery Completion Ongoing

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Roles of Service Provider and Outsourcing Organisation During Phases of Outsourcing Relationship
Service Provider
Analysis

Outsourcing Organisation
Determine if outsourcing represents a business opportunity

Initiation

Prepare for service transition, transfer resources and personnel from outsourcing organisation and ensure service continuity

Plan for outsourcing of selected services, evaluate and select a service provider, create an outsourcing agreement and transfer resources and personnel to service provider Implement the capability to manage the service provider, administer the agreement and the issues, challenges and changes that arise after the agreement has been reached, reviewing the service provider’s performance Develop outsourcing strategy management, manage relationship with service provider, ensure value, implement knowledge management processes, manage technology and manage risks and threats

Delivery

Define and agree requirements, negotiate contract, plan, design and deploy service, implement service delivery

Ongoing

Implement knowledge management processes, perform people management, implement performance management, manage relationship, manage technology and manage risks and threats

Completion
April 3, 2011

Prepare for service transition, transfer resources and personnel from outsourcing organisation and ensure service continuity

Plan for completion, ensure service continuity, transfer resources and personnel from outsourcing organisation and transfer knowledge
46

2011 47 .Roles of Service Provider and Outsourcing Organisation During Phases of Outsourcing Relationship Common Language and Expectations Service Provider Analysis Initiation Delivery Ongoing Completion Agreed Roles and Responsibilities Outsourcing Organisation April 3.

Key Capabilities and Constituent Practices • Idealised set of steps for a service provider and end-user organisations and outsourcing organisation to perform when taking on a new outsourcing service Provides a detailed checklist of work to be done Each practices contains a set of activities and tasks Can be modified to suit the circumstances: scope of outsourcing. size of service. duration of contract Can forms the basis of a project plan for elements of outsourcing work such as initiation Reduces risk of failure April 3. 2011 48 • • • • • .

Key Capabilities Within Outsourcing Lifecycle for Service Providers People Management Performance Management Relationship Management Technology Management Knowledge Management Ongoing Threat Management Initiation Delivery Completion Service Transfer April 3. 2011 Contracting Service Design and Deployment Service Delivery Service Transfer 49 .

Key Capabilities Within Outsourcing Lifecycle for End-User Organisations Outsourcing Strategy Management Governance Management Relationship Management Value Management Organisational Change Management Technology Management People Management Ongoing Threat Management Knowledge Management Analysis Outsourcing Opportunity Analysis Outsourcing Planning Outsourcing Approach Service Provider Evaluation Initiation Delivery Completion Outsourcing Agreements Sourced Services Management Outsourcing Completion Service Transfer April 3. 2011 50 .

Key Capabilities Within Outsourcing Lifecycle for Service Providers and End-User Organisations Outsourcing Capabilities and Skills Analysis Outsourcing Organisation Initiation Outsourcing Organisation Outsourcing Planning Service Provider Evaluation Outsourcing Agreements Service Transfer Service Provider Delivery Outsourcing Organisation Service Transfer Service Provider Ongoing Outsourcing Organisation Service Provider Completion Outsourcing Organisation Outsourcing Completion Service Provider Service Transfer Outsourcing Opportunity Analysis Outsourcing Approach Sourced Services Management Contracting Service Design and Deployment Service Delivery Outsourcing Strategy Management Governance Management Relationship Management Value Management Organisational Change Management People Management Knowledge Management Technology Management Threat Management Knowledge Management People Management Performance Management Relationship Management Technology Management Threat Management April 3. 2011 51 .

1 Share Knowledge 5.1 Client Interactions 8.6 Design Feedback 3.2 Provide Required Information# 5.7 Plan and Deliver Training 6.5 Define Roles 6.8 Resource Consumption 6.2 Participation in Decisions 6.3 Risk Across Engagements 10.5 Service Design 3.11 Rewards 7.10 Performance Feedback 6.10 Prevent Potential Problems 7.7 Version and Change Control 5.4 Security 10.7 Disaster Recovery 1.8 Value Creation 9.5 Optimise Technology 9.5 Review Organisational Performance 7.7 Review Requirements 2.2 Engagement Risk 10.9 Benchmark 7.3 Plan Design and Deployment 3.11 Deploy Innovations April 3.1 Engagement Objectives 7.4 Assign Responsibilitie s 6.6 Gather Requirements 2.2 Personnel Transferred In 1.2 Technology Licenses 9.10 Create Contracts 2.1 Plan Service Delivery 4.7 Supplier and Partner Relationships 8.4 Cultural Fit 8.4 Verify Service Commitments 4.1 Communicate Requirements 3.2 Select Suppliers and Partners 8.1 Risk Management 10. 2011 52 .3 Control Technology 9.4 Market Information 2.4 Process Assets 5.6 Knowledge Transferred Out 2.1 Encourage Innovation 6.9 Contract Roles 2.6 Make Improvements 7.Key Capabilities and Constituent Practices for Service Providers Outsourcing Capabilities and Skills Initiation/ Completion 1 Service Transfer Delivery 3 Service Design and Deployment Ongoing 2 Contracting 4 Service Delivery 5 Knowledge Management 4.6 Proactively Introduce Technology 2.6 Client Relationships 8.4 Resources Transferred Out 1.8 Financial Management 6 People Management 7 Performance Management 8 Relationship Management 9 Technology Management 10 Threat Management 10.3 Deliver Service 4.3 Service Continuity 1.7 Achieve Organisational Objectives 7.11 Amend Contracts 7.8 Plan and Deliver Training 6.5 Stakeholder Information 8.2 Train Clients 4.1 Negotiations 3.5 Intellectual Property 10.8 Deploy Service 5.3 Work Environment 6.3 Adequate Resources 7.4 Organisational Objectives 7.8 Capability Baselines 8.4 Service Specification 3.2 Design and Deploy Service 3.3 Confirm Existing Conditions 2.6 Workforce Competencies 6.2 Pricing 2.5 Correct Problems 4.9 Performance Feedback 6.5 Plan Negotiations 2.6 Statutory and Regulatory Compliance 10.1 Acquire Technology 9.5 Personnel Transferred Out 1.8 Respond to Requirements 2.7 Service Modifications 4.7 Verify Design 3.6 Reuse 5.6 Prevent Known Problems 4.3 Knowledge System 5.2 Verify Processes 7.1 Resources Transferred In 1.4 Technology Integration 9.5 Engagement Knowledge 5.3 Manage Suppliers and Partners 8.

1 Communicate Requirements 4.2 Verify Design 2.8 Review Service Performance 7.3 Financial Management 7.3 Negotiations 6.5 Prepare Service Requirements 5 Outsourcing Agreements 6 Service Transfer 7 Sourced Services Management 8 Outsourcing Completion 8.2 Business Case 6.5 Knowledge Transfer from Service Provider 7.2 Evaluate Potential Service Providers 4. 2011 53 .4 Personnel Transfer from Service Provider 8.Key Capabilities and Constituent Practices for EndUser Organisations .4 Outsourcing Options 2.1 Service Transition 2.4 Impact and Risk Analysis 2.2 Service Continuity 8.7 Amend Agreements April 3.5 Define SLAs and Measures 5.2 Service Definition 3.3 Resources Transfer from Service Provider 8.3 Resources Transferred Out 6.9 Stakeholder Feedback 7.2 Outsourcing Criteria 1.3 Service Provider Selection Procedures 3.4 Agreement Roles 5.3 Governance Model 2.3 Select Candidate Service Providers 5.5 Problem and Incident Monitoring 7.1 Negotiations Guidelines 5.7 Service Change Management 7.1 Outsourcing Capabilities and Skills Analysis Phase 1 Outsourcing Opportunity Analysis Initiation Phase Delivery Phase Completion Phase 2 Outsourcing Approach 3 Outsourcing Planning 4 Service Provider Evaluation 3.11 Continuation Decision 1.10 Service Value Analysis 7.6 Service Delivery Change Management 7.1 Outsourcing Approach 4.2 Performance Monitoring 7.5 Outsourcing Initiation Decision 5.5 Knowledge Transferred Out 5.1 Completion Planning 8.1 Define Current State 1.3 Demand Identification 1.1 Establish Outsourcing Project 3.4 Agreement Management 7.2 Confirm Existing Conditions 6.4 Personnel Transferred Out 6.6 Create Agreements 5.4 Evaluation Criteria 3.1 Perform Outsourcing Management 7.

3 Potential Outsourcing Areas 11.6 Collaborative Relationships 12.2 Service Provider Management 10.3 Intellectual Property 9.2 Personnel Competencies 14.1 Assign Outsourcing Responsibilities 15.4 Improve Outsourcing Processes 13.2 License Management 9.4 Defined Outsourcing Processes 10.7 Adapt to Business Change 11.7 Innovative Relationships April 3.3 Internal Stakeholder Management 10.1 Service Provider Interactions 11.4 Lessons Learned 17.3 Market Information 16.5 Communicate Organisational Changes 13.3 Internal Relationships 12.3 Technology Integration 9.4 Define Roles 15.4 Issue Management 13.5 Share Knowledge 17.6 Business Continuity 10.4 Outsourcing Objectives 9.1 Organisational Outsourcing Performance 12.4 Human Resource Changes 13.5 Compliance 11.2 Service Provider Relationships 12.Key Capabilities and Constituent Practices for EndUser Organisations .3 Organisational Outsourcing Competency 14.2 Organisational Risk Management 17.1 Prepare for Organisational Change 13.3 Define Future State 15.5 Innovation 15.4 Security and Privacy 11.3 Benchmark Outsourcing Processes 12.2 Stakeholder Involvement 14.2 Outsourcing Capabilities and Skills Ongoing Phase Governance Focused 13 Organisational Change Management Competency and Change Focused Environment Focused 9 Outsourcing Strategy Management 10 Governance Management 11 Relationship Management 12 Value Management 14 People Management 15 Knowledge Management 16 Technology Management 17 Threat Management 17.1 Outsourcing Policy 10.1 Asset Management 9.2 Outsourcing Constraints 14.5 Organisational Outsourcing Strategy 11.5 Align Strategy and Architectures 10.7 Outsourcing Alignment 17.6 Organisational Change 15.6 Business Process Integration 11. 2011 54 .1 Outsourcing Risk Management 17.2 Knowledge System 16.2 Capability Baselines 13.1 Provide Required Information 16.5 Cultural Fit 12.1 Outsourcing Sponsorship 10.6 Business Value and Impact 12.

processes. or as-is.Analysis Phase • • End-User Organisation Concerned with analysing operations and functions to identify those services. state of the client organisation’s structure and processes − Identifying the relevant criteria for selecting outsourcing opportunities − Identifying outsourcing opportunities to meet outsourcing objectives and criteria − Organising options for outsourcing − Developing and validating the Business Case for each outsourcing option − Identifying the outsourcing approach and governance model for the proposed outsourcing action − Performing impact and risk analyses of the proposed outsourcing action − Making the decision whether or not to source the proposed outsourcing action April 3. 2011 55 . or functions that could potentially be outsourced − Understanding the current.

2011 56 . technology infrastructure and work environment April 3. infrastructure. applications − Transition of service • • End-User Organisation Concerned with preparation for and initiation of managing outsourced services − Preparing for service selection by developing the solicitation and criteria for selection − Soliciting and evaluating potential service providers − Preparing for negotiation by having an organisational position on cost.personnel. quality and other topics that need to be negotiated − Defining the formal service level agreements and service provider performance measures − Understanding service provider’s capabilities by gathering information about the service provider and confirming the assumptions that impact commitments − Establishing a formal agreement with service providers that clearly articulates the clients’ and service provider’s responsibilities and commitments − Providing feedback on the service design in order to ensure that the services are meeting the client’s requirements and the agreed-upon commitments − Managing the effective transfer of resources needed for service delivery. including personnel.Initiation Phase • • Service Provider Concerned with preparation for and initiation of service delivery − Gather requirements − Perform due diligence to validate customer information − Assess if and how the requirements can be met − Prepare for negotiation − Negotiate and sign contract − Confirm assumptions − Confirm responsibilities and commitments − Design the service − Review the service design − Create service specification − Deploy the service − Transfer resources . technology.

2011 57 .Delivery Phase • • Service Provider Concerned with service delivery including management of service delivery. including the ongoing monitoring of service provider performance to verify that commitments are being met. management of the finances and agreements associated with the service provision. verification that commitments are being met and management of costs associated with the service provision − Planning and tracking the service delivery activities − Delivering services according to the agreed commitments − Managing the finances associated with the service delivery − Identifying and controlling modifications to the services being provided − Identifying and controlling modifications to associated service commitments − Identifying problems that impact the service delivery and taking both preventive and corrective actions • • End-User Organisation Concerned with monitoring the service provider’s service delivery capabilities. fostering realistic expectations and performing value analysis − Planning and tracking the outsourcing management activities − Ensuring that services are delivered according to the agreed-upon commitments − Managing the finances associated with the service delivery − Identifying and controlling modifications to the services being provided or to the associated service commitments − Facilitating problem resolution for problems that impact the service delivery − Reconciling performance against expectations and ensuring that the service provision returns value to the client organisation April 3. monitoring changes.

suppliers and business partners − Measure and review the organisation’s performance and taking action to improve it − Manage information and knowledge systems so that personnel have access to the knowledge needed to effectively perform their work − Identify and control threats to the organisation’s ability to meet its objectives and client requirements − Manage the technology. systems and applications infrastructure used to support delivery of service April 3.Ongoing Phase • • Service Provider Management functions that need to be performed during the entire outsourcing lifecycle − Manage and motivate personnel to effectively deliver services − Manage relationships with clients. systems and applications infrastructure used to support delivery of service 58 . suppliers and business partners − Measure and review the organisation’s performance and taking action to improve it − Manage information and knowledge systems so that personnel have access to the knowledge needed to effectively perform their work − Identify and control threats to the organisation’s ability to meet its objectives and client requirements − Manage the technology. 2011 • • End-User Organisation Management functions that need to be performed during the entire outsourcing lifecycle − Manage and motivate personnel to effectively deliver services − Manage relationships with clients.

during renewal. or during normal completion − Managing the transfer of resources to the new service provider. technology infrastructure and intellectual property − Ensuring service continuity during the transfer of responsibilities for service provision − Identifying and transferring the knowledge capital critical for the delivery of service April 3. whether it is to the client or to another service provider − Ensure service continuity during transfer − Identify and transferring the knowledge critical for the delivery of service • • End-User Organisation Concerned with closing down the engagement at the end of the outsourcing lifecycle − Planning for closing down a outsourced service and managing the agreement during the close-down period including managing the agreement during termination proceedings. 2011 59 .Completion Phase • • Service Provider Concerned with closing down the engagement at the end of the outsourcing lifecycle − Manage the transfer of resources to the new service provider. whether it is to back to the organisation or to another service provider including the potential transfer of people.

Benefits of Structured Approach • Service Provider Minimises problems Provides common language Provides common understanding of roles and responsibilities Provides mechanism for resolving issues Know what is expected and what should be done • End-User Organisation Provides structured approach to evaluating and adopting outsourcing Demonstrates due diligence in selecting outsourcing partner Provides common understanding of roles and responsibilities Provides mechanism for resolving issues Knows service to be provided and measures delivery • • • • • • • • • • April 3. 2011 60 .

Outsourcing for Service Providers April 3. 2011 61 .

2011 62 .Phases of Outsourcing Relationship Ongoing Initiation Delivery Completion April 3.

2011 63 .Phases of Outsourcing Relationship • Every outsourcing relationship has four phases − Initiation – prepare for and transition to provision of service − Delivery – provide service and manage and measure its provision − Completion – close-out the service after the contract ends or the service has been terminated − Ongoing – management of outsourcing lifecycle April 3.

technology. 2011 . infrastructure.personnel. applications Transition of service 64 April 3.Initiation Phase • Concerned with preparation for and initiation of service delivery − − − − − − − − − − − − − Gather requirements Perform due diligence to validate customer information Assess if and how the requirements can be met Prepare for negotiation Negotiate and sign contract Confirm assumptions Confirm responsibilities and commitments Design the service Review the service design Create service specification Deploy the service Transfer resources .

Delivery Phase • Concerned with service delivery including management of service delivery. 2011 65 . verification that commitments are being met and management of costs associated with the service provision − Planning and tracking the service delivery activities − Delivering services according to the agreed commitments − Managing the finances associated with the service delivery − Identifying and controlling modifications to the services being provided − Identifying and controlling modifications to associated service commitments − Identifying problems that impact the service delivery and taking both preventive and corrective actions April 3.

Completion Phase • Concerned with closing down the engagement at the end of the outsourcing lifecycle − Manage the transfer of resources to the new service provider. whether it is to the client or to another service provider − Ensure service continuity during transfer − Identify and transferring the knowledge critical for the delivery of service April 3. 2011 66 .

systems and applications infrastructure used to support delivery of service April 3.Ongoing Phase • Management functions that need to be performed during the entire outsourcing lifecycle − Manage and motivate personnel to effectively deliver services − Manage relationships with clients. 2011 67 . suppliers and business partners − Measure and review the organisation’s performance and taking action to improve it − Manage information and knowledge systems so that personnel have access to the knowledge needed to effectively perform their work − Identify and control threats to the organisation’s ability to meet its objectives and client requirements − Manage the technology.

Key Capabilities Within Outsourcing Lifecycle People Management Performance Management Relationship Management Technology Management Knowledge Management Ongoing Threat Management Initiation Delivery Completion Service Transfer April 3. 2011 Contracting Service Design and Deployment Service Delivery Service Transfer 68 .

2 Provide Required Information# 6.3 Plan Design and Deployment 4.1 Resources Transferred In 2.5 Intellectual Property 1.8 Resource Consumption 6. 2011 69 .7 Plan and Deliver Training 7.2 Train Clients 5.5 Define Roles 8.4 Security 1.7 Verify Design 4.6 Workforce Competencies 7.6 Proactively Introduce Technology 10.10 Create Contracts 6.1 Acquire Technology 10.2 Select Suppliers and Partners 8.2 Engagement Risk 1.5 Optimise Technology 10.1 Engagement Objectives 8.5 Stakeholder Information 9.5 Correct Problems 5.1 Plan Service Delivery 5.7 Achieve Organisational Objectives 8.3 Service Continuity 2.1 Negotiations 3.6 Design Feedback 4.5 Review Organisational Performance 8.5 Engagement Knowledge 6.1 Client Interactions 9.4 Market Information 3.7 Disaster Recovery 2.9 Contract Roles 6.3 Deliver Service 5.11 Deploy Innovations April 3.2 Technology Licenses 10.10 Prevent Potential Problems 2.5 Personnel Transferred Out 2.3 Risk Across Engagements 1.6 Statutory and Regulatory Compliance 2.Key Capabilities and Constituent Practices Outsourcing Capabilities and Skills Initiation/ Completion Delivery Ongoing 1 Service Transfer 2 Contracting 3 Service Design and Deployment 4 Service Delivery 5 Knowledge Management 6 People Management 7 Performance Management 8 Relationship Management 9 Technology Management 10 Threat Management 1.1 Encourage Innovation 7.7 Supplier and Partner Relationships 10.7 Service Modifications 5.3 Work Environment 7.11 Rewards 7.3 Knowledge System 6.4 Resources Transferred Out 2.4 Verify Service Commitments 5.4 Technology Integration 10.7 Review Requirements 3.3 Manage Suppliers and Partners 9.4 Cultural Fit 9.6 Client Relationships 9.8 Capability Baselines 8.8 Value Creation 2.1 Communicate Requirements 4.2 Participation in Decisions 7.5 Plan Negotiations 3.5 Service Design 4.8 Financial Management 5.6 Gather Requirements 3.1 Risk Management 1.6 Knowledge Transferred Out 2.11 Amend Contracts 6.1 Share Knowledge 6.4 Assign Responsibilities 7.9 Benchmark 2.3 Confirm Existing Conditions 3.4 Service Specification 4.8 Deploy Service 4.4 Organisational Objectives 7.3 Control Technology 10.6 Make Improvements 8.6 Prevent Known Problems 5.10 Performance Feedback 7.3 Adequate Resources 9.2 Design and Deploy Service 4.2 Verify Processes 8.7 Version and Change Control 6.2 Pricing 3.8 Respond to Requirements 3.6 Reuse 6.4 Process Assets 6.2 Personnel Transferred In 2.8 Plan and Deliver Training 7.9 Performance Feedback 7.

duration of contract Can forms the basis of a project plan for elements of outsourcing work such as initiation Reduces risk of failure Demonstrates professionalism to potential clients April 3. 2011 70 • • • • • • .Key Capabilities and Constituent Practices • Idealised set of steps for a service provider to perform when taking on a new outsourcing client Provides a detailed checklist of work to be done Each practice contains a set of activities and tasks Can be modified to suit the circumstances: scope of outsourcing. size of client.

problems and concerns arise across outsourcing contracts Learn from the issues to avoid them • • • April 3.Key Issues For Successful Outsourcing • Many outsourcing relationships fail. are terminated early. are unsatisfactory to either or both of the service provider and the client Outsourcing is a business issues and should be treated as such Many common issues. 2011 71 .

Managing clients’ security 10. Managing stakeholder expectations 3.Key Issues For Successful Outsourcing 1. Reviewing service design and deployment to ensure adequate coverage of the requirements 6. Managing cultural differences between stakeholders 11. 2011 72 . Establishing well-defined contracts with stakeholders. Translating implicit and explicit needs into defined requirements with agreedupon levels of quality 4. suppliers and partners 5. Managing supplier and partner relationships to ensure that commitments are met 8. Ensuring compliance with statutory and regulatory requirements 9. Monitoring and controlling activities to consistently meet the service delivery commitments April 3. including clients. Establishing and maintaining trust with stakeholders 2. Ensuring the effectiveness of interactions with stakeholders 7.

Capturing and transferring knowledge gained to the client during contract completion 23. reliability. Smoothly transferring services and resources 21. Establishing and maintaining an effective work environment 16. Innovating. accessibility and security of technology 19. 2011 73 . Managing employee satisfaction. Capturing and using knowledge 20. Managing rapid technological shifts and maintaining the availability. motivation and retention 15. Maintaining a competitive advantage 17. Monitoring and managing clients’ and end-users’ satisfaction 13. building flexibility and increasing responsiveness to meet unique and evolving client requirements 18. Measuring and analysing the reasons for termination. to prevent reoccurrence April 3. Building and maintaining the competencies that enable personnel to effectively perform their roles and responsibilities 14.Key Issues For Successful Outsourcing 12. Maintaining continuity of the service delivery 22.

services By effectively managing expectations and responding to personnel. communications. 2011 74 .Establishing And Maintaining Trust With Stakeholders • Building a trusting relationship with stakeholders is critical to success Important for all suppliers and partners involved in the outsourcing relationship – hardware. clients and end-users.holders to help establish long-term relationships • • April 3. service provider establishes trust with its stake. software.Issue 1 .

Managing Stakeholder Expectations • Differences in expectations between the client. 2011 75 . the service provider and the suppliers and partners is a common source of failure Identifying and managing those expectations helps to ensure a common understanding of what is necessary for success • April 3.Issue 2 .

2011 76 .Issue 3 .Translating Implicit And Explicit Needs Into Defined Requirements With Agreed-Upon Levels Of Quality • Frequent cause of failure in outsourcing is that the service provider does not fully understand the needs of the client − Inability of clients to adequately express their needs − Lack of rigor by the service provider in gathering and analysing those needs • Successful service providers rigorously gather and analyse the stated and unstated needs − Translate those needs into a set of documented requirements • Successful providers also recognise that needs change over time and establish provisions for gathering and analysing modifications to their services April 3.

Including Clients.Issue 4 .Establishing Well-Defined Contracts With Stakeholders. 2011 77 • • . modify services based on those changes and amend contracts to reflect the current requirements and commitments April 3. Suppliers And Partners • Poorly written contracts are a common cause of failure and result in a large number of contracts being renegotiated Outsourcing arrangements are typically long-term in nature and require contracts that are clear and detailed as well as being flexible enough to account for business changes Formal mechanisms are required in order for the provider to identify changing needs.

2011 78 . successful engagements include rigorous reviews of the service design and deployment activities by the clients and the service provider prior to service delivery • April 3.Reviewing Service Design And Deployment To Ensure Adequate Coverage Of The Requirements • Failure in outsourcing can be caused by the service provider not fully addressing the needs of the client To ensure that the service delivery will meet the client’s needs.Issue 5 .

Ensuring The Effectiveness Of Interactions With Stakeholders • Large-scale outsourcing often involves a combination of face-to-face and remote interactions Interactions with clients need to be managed in order to effectively understand their needs Clear communications with all stakeholders can have a strong positive impact on the ability to effectively perform work • • April 3.Issue 6 . 2011 79 .

2011 80 .Managing Supplier And Partner Relationships To Ensure That Commitments Are Met • Outsourcing engagements can include multiple service providers working together to meet the client’s needs Regardless of the type of relationship suppliers and partners can have a significant impact on the effectiveness of the service delivery and they must be actively managed • April 3.Issue 7 .

Issue 8 .Ensuring Compliance With Statutory And Regulatory Requirements • Service providers are often faced with the need to comply with a large variety of laws and regulations Effectively operating in this environment requires rigorous analysis and management of all applicable legal requirements to protect themselves and their clients • April 3. 2011 81 .

can impact the service provider’s ability to provide adequate service and can irreparably damage the relationship with the client • • April 3.Managing Clients’ Security • Managing security and controlling critical data and assets are critical to establishing trust Security management includes protection of intellectual property. such as security breaches. 2011 82 . confidentiality and privacy concerns Breakdowns.Issue 9 .

Managing Cultural Differences Between Stakeholders • In large-scale outsourcing there are many potential cultural differences between service providers. 2011 83 .Issue 10 . clients. suppliers and partners These include differences between country. end-users. region and organisational culture These differences need to be identified and addressed in order to guard against breakdowns in communication • • April 3.

Monitoring And Controlling Activities To Consistently Meet The Service Delivery Commitments • Successful service providers monitor their service delivery activities to ensure that the client’s commitments are being met Actions are taken to resolve and prevent problems.Issue 11 . thereby escalating issues as appropriate to ensure that they are addressed in a timely basis • April 3. 2011 84 .

Issue 12 .Monitoring And Managing Clients’ And End-Users’ Satisfaction • Success is not always defined in terms of meeting the agreed-upon commitments because clients and end-users may be unsatisfied even when commitments are being met Successful outsourcing engagements monitor the satisfaction levels of the stakeholders to identify problems and take action • April 3. 2011 85 .

• April 3.Building And Maintaining The Competencies That Enable Personnel To Effectively Perform Their Roles And Responsibilities • Outsourcing is often highly dependant on specialised competencies without which personnel cannot effectively perform the work assigned to them Service providers need to manage the competencies of individuals as well as the workforce as a whole in order to ensure that work is effectively performed and that the client’s requirements are met.Issue 13 . 2011 86 .

Managing Employee Satisfaction. 2011 87 . Motivation And Retention • IT-enabled outsourcing often involves challenges during transition and deployment and service delivery High employee turnover jeopardises the service provider’s ability to meet its clients’ requirements and undermines their expected gains and performance levels Proactively monitoring and managing employee satisfaction and motivation can improve personnel retention and effectiveness • • April 3.Issue 14 .

Establishing And Maintaining An Effective Work Environment • A work environment that is well suited to the service being delivered enables personnel to effectively perform their work Also contributes to employee satisfaction and retention • April 3.Issue 15 . 2011 88 .

2011 89 • • • .Maintaining A Competitive Advantage • Service providers need to effectively demonstrate their capabilities relative to competitors Initially done to differentiate the service provider from the competition in such a way that they will be chosen over other providers Done to continually improve the organisation’s capabilities and demonstrate to clients that the current service provider is the organisation best equipped to meet clients’ changing needs Important aspect of being competitive is demonstrating financial stability and longevity April 3.Issue 16 .

2011 90 .Issue 17 .Innovating. Building Flexibility and Increasing Responsiveness To Meet Unique And Evolving Client Requirements • Successful outsourcing engagements are those where the service provider is able to be flexible and responsive to clients’ changing needs Adopting innovations is one way to add value and meet new needs Actively manage the performance of the organisation and continuously improve its capabilities • • April 3.

Reliability.Managing Rapid Technological Shifts And Maintaining The Availability. 2011 91 . Accessibility And Security Of Technology • Technology is a key component of IT outsourcing such as public cloud Challenges for the service provider include keeping pace with rapid changes in technology and effectively managing the technology infrastructure while changes are incorporated • April 3.Issue 18 .

Issue 19 . 2011 92 . retrieval and use of knowledge gained on engagements • April 3.Capturing And Using Knowledge • Managing knowledge is critical to a service provider’s ability to avoid rework and improve the consistency and quality of work performed by personnel includes the effective storage.

2011 93 .Smoothly Transferring Services And Resources • A common cause of failure in outsourcing is the ineffective management of the transfer of services and resources to and from the service provider leading to service delivery problems Successful service providers rigorously control the transfer of services and resources to ensure that the new service provider is able to adequately deliver the service and that service continuity is maintained • April 3.Issue 20 .

2011 94 . preparing and responding to threats and coordinating the transfer of service during periods of transition • April 3.Issue 21 .Maintaining Continuity Of The Service Delivery • Effectiveness of outsourcing is related to the service provider’s ability to maintain service continuity despite any problems that arise Successful providers manage service continuity by effectively controlling and preventing problems during service delivery.

2011 95 .Issue 22 .Capturing And Transferring Knowledge Gained To The Client During Contract Completion • Frequent concern of clients who consider outsourcing is that in-house knowledge will be eroded. making it impossible to bring outsourced services back in-house Successful service providers address this concern by making provisions for capturing and transferring knowledge back to the client during contract completion • April 3.

Issue 23 . 2011 96 .Measuring And Analysing The Reasons for Termination to prevent Reoccurrence • Termination may happen for a number of reasons. resolve problems. or match the capabilities of competitors Analysing the reasons for termination and taking action based on the findings helps to prevent issues from recurring with other clients and ensure the long-term success of the service provider • April 3. meet commitments. including an inability of the service provider to meet changing client needs.

4 Market Information 3.6 Design Feedback 4.3 Adequate Resources 9.1 Risk Management 1.5 Stakeholder Information 9.7 Supplier and Partner Relationships 10.Key Capabilities and Constituent Practices Outsourcing Capabilities and Skills Initiation/ Completion Delivery Ongoing 1 Service Transfer 2 Contracting 3 Service Design and Deployment 4 Service Delivery 5 Knowledge Management 6 People Management 7 Performance Management 8 Relationship Management 9 Technology Management 10 Threat Management 1.2 Train Clients 5.10 Prevent Potential Problems 2.4 Verify Service Commitments 5.11 Rewards 7.1 Resources Transferred In 2.6 Gather Requirements 3.4 Process Assets 6.7 Review Requirements 3.3 Manage Suppliers and Partners 9.11 Deploy Innovations April 3.1 Share Knowledge 6.6 Client Relationships 9.7 Service Modifications 5.6 Prevent Known Problems 5.2 Participation in Decisions 7.4 Cultural Fit 9.5 Define Roles 8.8 Capability Baselines 8.3 Risk Across Engagements 1.3 Work Environment 7.6 Proactively Introduce Technology 10.1 Negotiations 3.4 Service Specification 4.10 Create Contracts 6.8 Financial Management 5.9 Performance Feedback 7.6 Knowledge Transferred Out 2.9 Contract Roles 6.6 Statutory and Regulatory Compliance 2.2 Select Suppliers and Partners 8.4 Technology Integration 10.6 Workforce Competencies 7.2 Verify Processes 8.2 Design and Deploy Service 4.2 Pricing 3.10 Performance Feedback 7.5 Engagement Knowledge 6.1 Plan Service Delivery 5.5 Plan Negotiations 3.9 Benchmark 2.3 Control Technology 10.3 Plan Design and Deployment 4.11 Amend Contracts 6.3 Deliver Service 5.5 Correct Problems 5.1 Acquire Technology 10.3 Confirm Existing Conditions 3.1 Client Interactions 9.3 Knowledge System 6.8 Value Creation 2.6 Reuse 6.4 Assign Responsibilities 7.1 Engagement Objectives 8.7 Version and Change Control 6.8 Resource Consumption 6.2 Technology Licenses 10.8 Plan and Deliver Training 7.8 Deploy Service 4.7 Achieve Organisational Objectives 8.5 Intellectual Property 1.4 Resources Transferred Out 2.5 Service Design 4. 2011 97 .2 Personnel Transferred In 2.4 Organisational Objectives 7.7 Disaster Recovery 2.7 Plan and Deliver Training 7.4 Security 1.5 Personnel Transferred Out 2.6 Make Improvements 8.7 Verify Design 4.3 Service Continuity 2.5 Review Organisational Performance 8.1 Communicate Requirements 4.2 Provide Required Information# 6.1 Encourage Innovation 7.8 Respond to Requirements 3.2 Engagement Risk 1.5 Optimise Technology 10.

1 Share Knowledge 6.4 Security 1.1 Acquire Technology 10.3 Adequate Resources 9.9 Performance Feedback 7.7 Service Modifications 5.2 Engagement Risk 1.5 Stakeholder Information 9.1 Client Interactions 9.7 Review Requirements 3.2 Select Suppliers and Partners 8.3 Confirm Existing Conditions 3.7 Plan and Deliver Training 7.1 Communicate Requirements 4.3 Risk Across Engagements 1.6 Gather Requirements 3.5 Plan Negotiations 3.3 Work Environment 7.6 Knowledge Transferred Out 2.7 Supplier and Partner Relationships 10.4 Cultural Fit 9.6 Client Relationships 9.3 Plan Design and Deployment 4.5 Service Design 4.6 Make Improvements 8.2 Verify Processes 8.10 Performance Feedback 7.5 Define Roles 8.2 Participation in Decisions 7.7 Achieve Organisational Objectives 8.Activities Outsourcing Capabilities and Skills Initiation/ Completion Delivery Ongoing 1 Service Transfer 2 Contracting 3 Service Design and Deployment 4 Service Delivery 5 Knowledge Management 6 People Management 7 Performance Management 8 Relationship Management 9 Technology Management 10 Threat Management 1.9 Benchmark 2.1 Risk Management 1.8 Financial Management 5.11 Rewards 7.6 Reuse 6.5 Correct Problems 5.3 Service Continuity 2.10 Create Contracts 6.5 Review Organisational Performance 8.2 Pricing 3.1 Engagement Objectives 8.2 Train Clients 5.8 Value Creation 2.4 Organisational Objectives 7.6 Statutory and Regulatory Compliance 2.2 Design and Deploy Service 4.2 Provide Required Information# 6.5 Personnel Transferred Out 2.5 Engagement Knowledge 6.1 Service Transfer .4 Service Specification 4.11 Deploy Innovations April 3.3 Manage Suppliers and Partners 9.10 Prevent Potential Problems 2.6 Prevent Known Problems 5.7 Verify Design 4.9 Contract Roles 6.2 Technology Licenses 10.4 Market Information 3.1 Negotiations 3.8 Plan and Deliver Training 7.6 Workforce Competencies 7.4 Process Assets 6.8 Deploy Service 4.1 Plan Service Delivery 5.4 Technology Integration 10.1 Encourage Innovation 7.7 Version and Change Control 6.4 Verify Service Commitments 5.7 Disaster Recovery 2.6 Proactively Introduce Technology 10. 2011 98 .8 Respond to Requirements 3.3 Deliver Service 5.5 Optimise Technology 10.8 Resource Consumption 6.2 Personnel Transferred In 2.4 Assign Responsibilities 7.3 Control Technology 10.5 Intellectual Property 1.11 Amend Contracts 6.6 Design Feedback 4.3 Knowledge System 6.8 Capability Baselines 8.1 Resources Transferred In 2.4 Resources Transferred Out 2.

1. 2011 99 .1 Service Transfer .1 Resources Transferred In • Scope − Establish and implement procedures to verify and account for resources transferred to the organisation • Track and manage resource transfers in order to facilitate a smooth transfer of responsibilities prior to service delivery • Activities − Provide support for creating and maintaining the procedures for verifying and accounting for resources transferred to the organisation − Document and implement the procedures for verifying and accounting for resources transferred to the organisation − Support the implementation of the procedures for verifying and accounting for resources transferred to the organisation April 3.

2011 100 .2 Personnel Transferred In • Scope − Establish and implement procedures to manage the transfer of personnel to the organisation • Transfer the necessary personnel and ensure that the necessary personnel competencies are in place in order to enable the organisation to effectively deliver service • Activities − Provide support for creating and maintaining the procedures for managing the transfer of personnel to the organisation − Document and implement the procedures for managing the transfer of personnel to the organisation − Support the implementation of the procedures for managing the transfer of personnel to the organisation April 3.1.1 Service Transfer .

2011 101 . in order to improve client satisfaction • Activities − Provide support for creating and maintaining the procedures for ensuring continuity of service across the organisation − Document and implement the procedures for ensuring continuity of service − Support the implementation of the procedures for ensuring continuity of service across the organisation April 3.1 Service Transfer .3 Service Continuity • Scope − Establish and implement procedures to ensure the continuity of service • Maintain service continuity as service is transferred to the client. or to another service provide.1.

1 Service Transfer .4 Resources Transferred Out • Scope − Establish and implement procedures to transfer resources from the organisation • Manage the transfer of resources in order to help ensure a smooth handover and improve the client’s satisfaction. 2011 102 .1. thereby establishing a basis for future relationships with the client • Activities − Provide support for creating and maintaining the procedures for transferring resources from the organisation − Document and implement the procedures for transferring resources from the organisation − Support the implementation of the procedures for transferring resources from the organisation April 3.

5 Personnel Transferred Out • Scope − Establish and implement procedures to manage the transfer of personnel from the organisation • Activities − Provide support for creating and maintaining the procedures for managing the transfer of personnel from the organisation − Document and implement the procedures for managing the transfer of personnel from the organisation − Support the implementation of the procedures for managing the transfer of personnel from the organisation April 3.1 Service Transfer . 2011 103 .1.

6 Knowledge Transferred Out • Scope − Establish and implement procedures to transfer to the client the knowledge gained from the specific client engagement • Activities − Provide support for creating and maintaining the procedures for transferring knowledge to the client − Document and implement the procedures for transferring knowledge to the client − Support the implementation of the procedures for transferring knowledge to the client April 3. 2011 104 .1.1 Service Transfer .

8 Deploy Service 4.4 Market Information 3.10 Performance Feedback 7.11 Deploy Innovations April 3.6 Knowledge Transferred Out 2.1 Resources Transferred In 2.11 Amend Contracts 6.3 Manage Suppliers and Partners 9.6 Client Relationships 9.4 Resources Transferred Out 2.2 Contracting .6 Workforce Competencies 7.4 Organisational Objectives 7.6 Reuse 6.7 Supplier and Partner Relationships 10. 2011 105 .7 Disaster Recovery 2.3 Adequate Resources 9.1 Plan Service Delivery 5.8 Capability Baselines 8.7 Review Requirements 3.1 Negotiations 3.7 Achieve Organisational Objectives 8.2 Technology Licenses 10.6 Gather Requirements 3.4 Security 1.5 Plan Negotiations 3.8 Value Creation 2.8 Resource Consumption 6.6 Design Feedback 4.1 Risk Management 1.5 Stakeholder Information 9.3 Control Technology 10.4 Technology Integration 10.5 Correct Problems 5.9 Performance Feedback 7.3 Risk Across Engagements 1.5 Optimise Technology 10.1 Encourage Innovation 7.9 Contract Roles 6.3 Plan Design and Deployment 4.6 Proactively Introduce Technology 10.3 Service Continuity 2.5 Intellectual Property 1.1 Acquire Technology 10.1 Client Interactions 9.4 Verify Service Commitments 5.2 Select Suppliers and Partners 8.3 Knowledge System 6.3 Work Environment 7.Activities Outsourcing Capabilities and Skills Initiation/ Completion Delivery Ongoing 1 Service Transfer 2 Contracting 3 Service Design and Deployment 4 Service Delivery 5 Knowledge Management 6 People Management 7 Performance Management 8 Relationship Management 9 Technology Management 10 Threat Management 1.5 Review Organisational Performance 8.2 Participation in Decisions 7.3 Deliver Service 5.2 Personnel Transferred In 2.7 Verify Design 4.6 Statutory and Regulatory Compliance 2.1 Engagement Objectives 8.5 Engagement Knowledge 6.5 Service Design 4.4 Process Assets 6.1 Share Knowledge 6.8 Financial Management 5.6 Prevent Known Problems 5.8 Plan and Deliver Training 7.2 Pricing 3.9 Benchmark 2.7 Service Modifications 5.10 Prevent Potential Problems 2.5 Define Roles 8.11 Rewards 7.2 Engagement Risk 1.10 Create Contracts 6.4 Assign Responsibilities 7.6 Make Improvements 8.3 Confirm Existing Conditions 3.5 Personnel Transferred Out 2.7 Plan and Deliver Training 7.1 Communicate Requirements 4.2 Train Clients 5.2 Design and Deploy Service 4.2 Provide Required Information# 6.8 Respond to Requirements 3.4 Service Specification 4.2 Verify Processes 8.7 Version and Change Control 6.4 Cultural Fit 9.

2.1 Negotiations • Scope − Establish and implement guidelines for negotiations with current or prospective clients • Activities − Provide support for creating and maintaining the guidelines for negotiations with current or prospective clients across the organisation − Document and implement the guidelines for negotiations with current or prospective clients − Support the implementation of guidelines for negotiations with current or prospective clients across the organisation April 3.2 Contracting . 2011 106 .

2 Pricing • Scope − Establish and implement guidelines for pricing services • Activities − Provide support for creating and maintaining the guidelines for pricing services − Document and implement the guidelines for pricing services − Support the implementation of guidelines for pricing services April 3.2 Contracting .2. 2011 107 .

2. 2011 108 .2 Contracting .3 Confirm Existing Conditions • Scope − Establish and implement guidelines for confirming existing conditions about potential engagements • Activities − Provide support for creating and maintaining the guidelines for confirming existing conditions − Document and implement the guidelines for confirming existing conditions − Support the implementation of guidelines for confirming existing conditions April 3.

2.2 Contracting . 2011 109 .4 Market Information • Scope − Analyse and use market information about prospective clients • Activities − Provide support for creating and maintaining the work products and tasks for analysing and using market information about prospective clients − Document and implement the work products and tasks required for analysing and using market information about prospective clients − Support the implementation of analysing and using market information about prospective clients April 3.

2. 2011 110 .2 Contracting .5 Plan Negotiations • Scope − Plan and track negotiations with current or prospective clients • Activities − Provide support for creating and maintaining the work products and tasks for planning and tracking client negotiations − Document and implement the work products and tasks required for planning and tracking client negotiations − Support the implementation of planning and tracking client negotiations April 3.

2 Contracting .2. 2011 111 .6 Gather Requirements • Scope − Establish and implement procedures to gather a client’s requirements • Activities − Provide support for creating and maintaining the procedures for gathering requirements − Document and implement the procedures for gathering requirements − Support the implementation of the procedures for gathering requirements April 3.

2 Contracting . review requirements and verify that the organisation can meet them • Activities − Provide support for creating and maintaining the work products and tasks for reviewing requirements and verifying that the organisation can meet them − Document and implement the work products and tasks required for reviewing requirements and verifying that the organisation can meet them − Support the implementation of reviewing requirements and verifying that the organisation can meet them April 3.7 Review Requirements • Scope − Prior to committing to the prospective client. 2011 112 .2.

2 Contracting . 2011 113 .8 Respond to Requirements • Scope − Establish and implement procedures to respond to the requirements of a prospective client • Activities − Provide support for creating and maintaining the procedures for responding to requirements − Document and implement the procedures for responding to requirements − Support the implementation of the procedures for responding to requirements April 3.2.

9 Contract Roles • Scope − Establish and implement procedures to respond to the requirements of a prospective client • Activities − Provide support for creating and maintaining the procedures for responding to requirements − Document and implement the procedures for responding to requirements − Support the implementation of the procedures for responding to requirements April 3. 2011 114 .2 Contracting .2.

2. 2011 115 .10 Create Contracts • Scope − Define the roles and responsibilities of the organisation and the client with respect to the proposed contract • Consistent and effective legal agreements in order to enable all the parties to have a clear understanding of what services will be delivered and at what level of quality • Given the long-term nature of most outsourcing engagements.2 Contracting . implementing procedures for contracts and flexibility in the relationship between the client and the organisation are critical to success • Activities − Provide support for creating and maintaining the work products and tasks for defining the roles and responsibilities of the organisation and client − Document and implement the work products and tasks required for defining the roles and responsibilities of the organisation and client − Support the implementation of defining the roles and responsibilities of the organisation and client April 3.

2. 2011 116 .11 Amend Contracts • Scope − Establish and implement procedures to amend contracts • Activities − Provide support for creating and maintaining the procedures for amending contracts − Document and implement the procedures for amending contracts − Support the implementation of the procedures for amending contracts April 3.2 Contracting .

10 Performance Feedback 7.9 Contract Roles 6.5 Engagement Knowledge 6.4 Service Specification 4.2 Personnel Transferred In 2.6 Workforce Competencies 7.7 Achieve Organisational Objectives 8.7 Version and Change Control 6.4 Technology Integration 10.8 Financial Management 5.7 Verify Design 4.4 Organisational Objectives 7.2 Provide Required Information# 6.Activities Outsourcing Capabilities and Skills Initiation/ Completion Delivery Ongoing 1 Service Transfer 2 Contracting 3 Service Design and Deployment 4 Service Delivery 5 Knowledge Management 6 People Management 7 Performance Management 8 Relationship Management 9 Technology Management 10 Threat Management 1.2 Engagement Risk 1.8 Capability Baselines 8.10 Create Contracts 6.5 Review Organisational Performance 8.3 Service Continuity 2.5 Plan Negotiations 3.7 Plan and Deliver Training 7.5 Personnel Transferred Out 2.6 Gather Requirements 3.1 Client Interactions 9.2 Technology Licenses 10.3 Knowledge System 6.1 Share Knowledge 6.1 Acquire Technology 10.4 Process Assets 6.3 Risk Across Engagements 1.4 Market Information 3.6 Prevent Known Problems 5.9 Benchmark 2.4 Assign Responsibilities 7.3 Work Environment 7.6 Proactively Introduce Technology 10.6 Statutory and Regulatory Compliance 2.8 Deploy Service 4.3 Control Technology 10.7 Review Requirements 3.8 Resource Consumption 6.6 Make Improvements 8.4 Security 1.1 Plan Service Delivery 5.5 Intellectual Property 1.3 Service Design and Deployment .2 Train Clients 5.5 Stakeholder Information 9.4 Verify Service Commitments 5.4 Cultural Fit 9.2 Design and Deploy Service 4.9 Performance Feedback 7.6 Client Relationships 9. 2011 117 .8 Plan and Deliver Training 7.1 Encourage Innovation 7.1 Risk Management 1.1 Resources Transferred In 2.2 Verify Processes 8.2 Pricing 3.3 Confirm Existing Conditions 3.5 Correct Problems 5.6 Knowledge Transferred Out 2.6 Reuse 6.11 Amend Contracts 6.5 Optimise Technology 10.6 Design Feedback 4.7 Service Modifications 5.11 Rewards 7.11 Deploy Innovations April 3.10 Prevent Potential Problems 2.7 Disaster Recovery 2.2 Select Suppliers and Partners 8.8 Respond to Requirements 3.5 Define Roles 8.1 Negotiations 3.4 Resources Transferred Out 2.7 Supplier and Partner Relationships 10.3 Plan Design and Deployment 4.1 Engagement Objectives 8.5 Service Design 4.2 Participation in Decisions 7.3 Manage Suppliers and Partners 9.3 Adequate Resources 9.8 Value Creation 2.3 Deliver Service 5.1 Communicate Requirements 4.

2011 118 .3 Service Design and Deployment .3.1 Communicate Requirements • Scope − Establish and implement procedures to communicate the client’s requirements to the service design and deployment team • Activities − Provide support for creating and maintaining the procedures for communicating requirements − Document and implement the procedures for communicating requirements − Support the implementation of the procedures for communicating requirements April 3.

3. 2011 119 .2 Design and Deploy Service • Scope − Establish and implement procedures to design and deploy the service to meet client requirements • Activities − Provide support for creating and maintaining the procedures for designing and deploying the service across the organisation − Document and implement the procedures for designing and deploying the service − Support the implementation of the procedures for designing and deploying the service across the organisation April 3.3 Service Design and Deployment .

3 Plan Design and Deployment • Scope − Plan and track the design and deployment of the service • Activities − Provide support for creating and maintaining the work products and tasks for planning and tracking the design and deployment of the service − Document and implement the work products and tasks required for planning and tracking design and deployment − Support the implementation of planning and tracking the design and deployment of the service April 3.3. 2011 120 .3 Service Design and Deployment .

if any and the interfaces between the organisation. the clients and the end-users • As the service evolves over time. the agreed-upon service levels.3 Service Design and Deployment . accurately and comprehensively describes the services to be provided in order to effectively meet the client’s requirements • Service specification is the basis for designing. deploying and delivering service. the service specification is modified to document the changing expectations of the client and the organisation • Activities − Provide support for creating and maintaining the work products and tasks for creating the service specification − Document and implement the work products and tasks required for creating the service specification − Support the implementation of creating the service specification April 3.4 Service Specification • Scope − Create the service specification • Create a service specification that clearly.3. It is a comprehensive document that describes the services that the organisation provides to the client and describes how end-users request services • Describes the available services. 2011 121 .

5 Service Design • Scope − Create the service design based on the service specification • Ensure that the service design is based on the client’s requirements and the set of services specified in the agreed-upon service specification in order to effectively meet the client’s requirements • Activities − Provide support for creating and maintaining the work products and tasks for creating the service design − Document and implement the work products and tasks required for creating the service design − Support the implementation of creating the service design April 3. 2011 122 .3.3 Service Design and Deployment .

3. 2011 123 .3 Service Design and Deployment .6 Design Feedback • Scope − Establish and implement procedures to obtain feedback from the client on the designed service and to incorporate necessary changes • Activities − Provide support for creating and maintaining the procedures for obtaining service design feedback − Document and implement the procedures for obtaining service design feedback − Support the implementation of the procedures for obtaining service design feedback April 3.

3 Service Design and Deployment .7 Verify Design • Scope − Establish and implement procedures to review and verify the service design • Activities − Provide support for creating and maintaining the procedures for service design review and verification across the organisation − Document and implement the procedures for service design review and verification − Support the implementation of the procedures for service design review and verification April 3.3. 2011 124 .

8 Deploy Service • Scope − Deploy the service based on the service design • Activities − Provide support for creating and maintaining the work products and tasks for deploying the service − Document and implement the work products and tasks required for deploying the service − Support the implementation of deploying the service April 3. 2011 125 .3 Service Design and Deployment .3.

5 Service Design 4.8 Resource Consumption 6.8 Value Creation 2.2 Select Suppliers and Partners 8.3 Adequate Resources 9.4 Organisational Objectives 7.3 Knowledge System 6.4 Technology Integration 10.4 Market Information 3.1 Encourage Innovation 7.5 Define Roles 8.3 Risk Across Engagements 1. 2011 126 .2 Verify Processes 8.7 Review Requirements 3.6 Reuse 6.2 Train Clients 5.7 Plan and Deliver Training 7.6 Client Relationships 9.1 Plan Service Delivery 5.2 Engagement Risk 1.3 Deliver Service 5.9 Benchmark 2.1 Negotiations 3.6 Workforce Competencies 7.2 Personnel Transferred In 2.9 Performance Feedback 7.1 Communicate Requirements 4.11 Rewards 7.6 Design Feedback 4.4 Verify Service Commitments 5.5 Plan Negotiations 3.2 Design and Deploy Service 4.2 Participation in Decisions 7.5 Stakeholder Information 9.5 Review Organisational Performance 8.7 Supplier and Partner Relationships 10.6 Gather Requirements 3.11 Deploy Innovations April 3.1 Share Knowledge 6.3 Manage Suppliers and Partners 9.6 Statutory and Regulatory Compliance 2.10 Create Contracts 6.7 Disaster Recovery 2.4 Process Assets 6.4 Security 1.9 Contract Roles 6.4 Assign Responsibilities 7.5 Intellectual Property 1.5 Optimise Technology 10.3 Service Continuity 2.6 Proactively Introduce Technology 10.3 Control Technology 10.8 Respond to Requirements 3.11 Amend Contracts 6.4 Service Specification 4.1 Risk Management 1.5 Correct Problems 5.6 Prevent Known Problems 5.7 Achieve Organisational Objectives 8.4 Cultural Fit 9.4 Service Delivery .8 Deploy Service 4.6 Knowledge Transferred Out 2.8 Capability Baselines 8.10 Prevent Potential Problems 2.10 Performance Feedback 7.Activities Outsourcing Capabilities and Skills Initiation/ Completion Delivery Ongoing 1 Service Transfer 2 Contracting 3 Service Design and Deployment 4 Service Delivery 5 Knowledge Management 6 People Management 7 Performance Management 8 Relationship Management 9 Technology Management 10 Threat Management 1.7 Version and Change Control 6.1 Resources Transferred In 2.3 Work Environment 7.3 Confirm Existing Conditions 3.8 Plan and Deliver Training 7.1 Client Interactions 9.3 Plan Design and Deployment 4.2 Provide Required Information# 6.5 Engagement Knowledge 6.7 Verify Design 4.4 Resources Transferred Out 2.1 Acquire Technology 10.8 Financial Management 5.1 Engagement Objectives 8.6 Make Improvements 8.2 Pricing 3.7 Service Modifications 5.5 Personnel Transferred Out 2.2 Technology Licenses 10.

1 Plan Service Delivery • Scope − Plan and track the service delivery according to the service design • Activities − Provide support for creating and maintaining the work products and tasks for planning and tracking the service delivery − Document and implement the work products and tasks required for planning and tracking service delivery − Support the implementation of planning and tracking the service delivery April 3. 2011 127 .4 Service Delivery .4.

2 Train Clients • Scope − Establish and implement procedures to train clients and end-users • Activities − Provide support for creating and maintaining the procedures for training clients and end-users − Document and implement the procedures for training clients and end-users − Support the implementation of the procedures for training clients and end-users April 3.4.4 Service Delivery . 2011 128 .

4. 2011 129 .4 Service Delivery .3 Deliver Service • Scope − Deliver service according to the service delivery plans • Activities − Provide support for creating and maintaining the work products and tasks for delivering service − Document and implement the work products and tasks required for delivering service − Support the implementation of delivering service April 3.

4 Verify Service Commitments • Scope − Establish and implement procedures to measure and verify that service commitments are being met • Activities − Provide support for creating and maintaining the procedures for verifying service commitments − Document and implement the procedures for verifying service commitments − Support the implementation of the procedures for verifying service commitments April 3. 2011 130 .4.4 Service Delivery .

5 Correct Problems • Scope − Establish and implement procedures to correct problems • Activities − Provide support for creating and maintaining the procedures for correcting problems − Document and implement the procedures for correcting problems − Support the implementation of the procedures for correcting problems April 3.4 Service Delivery . 2011 131 .4.

4. 2011 132 .4 Service Delivery .6 Prevent Known Problems • Scope − Establish and implement procedures to take preventive action for known problems • Activities − Provide support for creating and maintaining the procedures for taking preventive actions for known problems across the organisation − Document and implement the procedures for taking preventive actions for known problems − Support the implementation of the procedures for taking preventive actions for known problems across the organisation April 3.

7 Service Modifications • Scope − Establish and implement procedures to make modifications to services • Activities − Provide support for creating and maintaining the procedures for modifying services − Document and implement the procedures for modifying services − Support the implementation of the procedures for modifying services April 3.4 Service Delivery . 2011 133 .4.

2011 134 .4.8 Financial Management • Scope − Establish and implement procedures for financial management of the engagement • Activities − Provide support for creating and maintaining the procedures for financial management of the engagement − Document and implement the procedures for the financial management of the engagement − Support the implementation of the procedures for financial management of the engagement April 3.4 Service Delivery .

8 Resource Consumption 6. 2011 135 .1 Encourage Innovation 7.1 Plan Service Delivery 5.4 Security 1.5 Plan Negotiations 3.4 Service Specification 4.3 Work Environment 7.5 Optimise Technology 10.5 Intellectual Property 1.2 Select Suppliers and Partners 8.6 Client Relationships 9.3 Plan Design and Deployment 4.6 Reuse 6.5 Service Design 4.7 Disaster Recovery 2.1 Negotiations 3.9 Contract Roles 6.2 Engagement Risk 1.3 Risk Across Engagements 1.7 Achieve Organisational Objectives 8.5 Stakeholder Information 9.5 Knowledge Management .2 Verify Processes 8.3 Service Continuity 2.6 Workforce Competencies 7.1 Engagement Objectives 8.3 Knowledge System 6.5 Define Roles 8.10 Prevent Potential Problems 2.9 Benchmark 2.1 Share Knowledge 6.3 Deliver Service 5.8 Respond to Requirements 3.4 Verify Service Commitments 5.8 Plan and Deliver Training 7.4 Market Information 3.10 Performance Feedback 7.7 Verify Design 4.4 Organisational Objectives 7.2 Participation in Decisions 7.6 Prevent Known Problems 5.11 Amend Contracts 6.7 Service Modifications 5.2 Personnel Transferred In 2.2 Pricing 3.11 Deploy Innovations April 3.2 Provide Required Information# 6.5 Review Organisational Performance 8.5 Engagement Knowledge 6.5 Personnel Transferred Out 2.6 Proactively Introduce Technology 10.7 Version and Change Control 6.3 Manage Suppliers and Partners 9.6 Statutory and Regulatory Compliance 2.7 Plan and Deliver Training 7.8 Financial Management 5.8 Value Creation 2.6 Design Feedback 4.1 Client Interactions 9.6 Make Improvements 8.1 Acquire Technology 10.3 Control Technology 10.1 Resources Transferred In 2.1 Communicate Requirements 4.9 Performance Feedback 7.4 Technology Integration 10.7 Supplier and Partner Relationships 10.4 Process Assets 6.1 Risk Management 1.8 Capability Baselines 8.Activities Outsourcing Capabilities and Skills Initiation/ Completion Delivery Ongoing 1 Service Transfer 2 Contracting 3 Service Design and Deployment 4 Service Delivery 5 Knowledge Management 6 People Management 7 Performance Management 8 Relationship Management 9 Technology Management 10 Threat Management 1.3 Adequate Resources 9.6 Gather Requirements 3.4 Resources Transferred Out 2.7 Review Requirements 3.8 Deploy Service 4.2 Technology Licenses 10.11 Rewards 7.4 Assign Responsibilities 7.10 Create Contracts 6.4 Cultural Fit 9.5 Correct Problems 5.3 Confirm Existing Conditions 3.2 Design and Deploy Service 4.6 Knowledge Transferred Out 2.2 Train Clients 5.

2011 136 .5.5 Knowledge Management .1 Share Knowledge • Scope − Establish and implement a policy to share knowledge among stakeholders • Activities − Provide support for creating and maintaining a policy for sharing knowledge among stakeholders across the organisation − Document and implement a policy for sharing knowledge among stakeholders − Support the implementation of a policy for sharing knowledge among stakeholders across the organisation April 3.

5. controlling and making available the information personnel need to perform their work April 3. 2011 137 .2 Provide Required Information • Scope − Identify. controlling and providing the information personnel need to perform their work − Document and implement work products and tasks required for identifying.5 Knowledge Management . control and provide the information that personnel need to perform their work • Activities − Provide support for creating and maintaining the work products and tasks for identifying. controlling and providing the information personnel need to perform their work − Support the implementation of identifying.

3 Knowledge System • Scope − Establish and maintain a knowledge system to identify. 2011 138 .5. control and provide information • Activities − Provide support for creating and maintaining the work products and tasks for establishing and maintaining a knowledge system for use across the organisation − Document and implement work products and tasks required for establishing and maintaining a knowledge system − Support the implementation of establishing and maintaining a knowledge system for use across the organisation April 3.5 Knowledge Management .

5 Knowledge Management - 5.4 Process Assets

Scope
− Establish and maintain a set of process assets for use across the organisation

Activities
− Provide support for creating and maintaining the work products and tasks for establishing and maintaining a set of process assets for use across the organisation − Document and implement work products and tasks required for establishing and maintaining a set of process assets − Support the implementation of establishing and maintaining a set of process assets for use across the organisation

April 3, 2011

139

5 Knowledge Management - 5.5 Engagement Knowledge

Scope
− Analyse and use knowledge gained from client engagements

Activities
− Provide support for creating and maintaining the work products and tasks for analysing and using knowledge gained from client engagements across the organisation − Document and implement work products and tasks required for analysing knowledge gained from client engagements − Support the implementation of analysing and using knowledge gained from client engagements across the organisation

April 3, 2011

140

5 Knowledge Management - 5.6 Reuse

Scope
− Identify and reuse work products

Activities
− Provide support for creating and maintaining the work products and tasks for identifying and reusing work products across the organisation − Document and implement work products and tasks required for identifying and reusing work products − Support the implementation of identifying and reusing work products across the organisation

April 3, 2011

141

5 Knowledge Management - 5.7 Version and Change Control

Scope
− Establish and implement procedures to apply version control and change control to work products

Activities
− Provide support for creating and maintaining the procedures for version control and change control − Document and implement the procedures for version control and change control − Support the implementation of the procedures for version control and change control

April 3, 2011

142

5 Knowledge Management - 5.8 Resource Consumption

Scope
− Establish and implement procedures to analyse and use information on resources consumed

Activities
− Provide support for creating and maintaining the procedures for analysing and using information on resource consumption − Document and implement the procedures for analysing and using information on resource consumption − Support the implementation of the procedures for analysing and using information on resource consumption

April 3, 2011

143

6 People Management - Activities
Outsourcing Capabilities and Skills Initiation/ Completion Delivery Ongoing

1 Service Transfer

2 Contracting

3 Service Design and Deployment

4 Service Delivery

5 Knowledge Management

6 People Management

7 Performance Management

8 Relationship Management

9 Technology Management

10 Threat Management

1.1 Resources Transferred In

2.1 Negotiations

3.1 Communicate Requirements

4.1 Plan Service Delivery

5.1 Share Knowledge

6.1 Encourage Innovation

7.1 Engagement Objectives

8.1 Client Interactions

9.1 Acquire Technology

10.1 Risk Management

1.2 Personnel Transferred In

2.2 Pricing

3.2 Design and Deploy Service

4.2 Train Clients

5.2 Provide Required Information#

6.2 Participation in Decisions

7.2 Verify Processes

8.2 Select Suppliers and Partners 8.3 Manage Suppliers and Partners

9.2 Technology Licenses

10.2 Engagement Risk

1.3 Service Continuity

2.3 Confirm Existing Conditions

3.3 Plan Design and Deployment

4.3 Deliver Service

5.3 Knowledge System

6.3 Work Environment

7.3 Adequate Resources

9.3 Control Technology

10.3 Risk Across Engagements

1.4 Resources Transferred Out

2.4 Market Information

3.4 Service Specification

4.4 Verify Service Commitments

5.4 Process Assets

6.4 Assign Responsibilities

7.4 Organisational Objectives 7.5 Review Organisational Performance

8.4 Cultural Fit

9.4 Technology Integration

10.4 Security

1.5 Personnel Transferred Out

2.5 Plan Negotiations

3.5 Service Design

4.5 Correct Problems

5.5 Engagement Knowledge

6.5 Define Roles

8.5 Stakeholder Information

9.5 Optimise Technology

10.5 Intellectual Property

1.6 Knowledge Transferred Out

2.6 Gather Requirements

3.6 Design Feedback

4.6 Prevent Known Problems

5.6 Reuse

6.6 Workforce Competencies

7.6 Make Improvements

8.6 Client Relationships

9.6 Proactively Introduce Technology

10.6 Statutory and Regulatory Compliance

2.7 Review Requirements

3.7 Verify Design

4.7 Service Modifications

5.7 Version and Change Control

6.7 Plan and Deliver Training

7.7 Achieve Organisational Objectives

8.7 Supplier and Partner Relationships

10.7 Disaster Recovery

2.8 Respond to Requirements

3.8 Deploy Service

4.8 Financial Management

5.8 Resource Consumption

6.8 Plan and Deliver Training

7.8 Capability Baselines

8.8 Value Creation

2.9 Contract Roles

6.9 Performance Feedback

7.9 Benchmark

2.10 Create Contracts

6.10 Performance Feedback

7.10 Prevent Potential Problems

2.11 Amend Contracts

6.11 Rewards

7.11 Deploy Innovations

April 3, 2011

144

6 People Management .1 Encourage Innovation • Scope − Establish and implement a policy to encourage and support innovation across the organisation • Activities − Provide support for creating and maintaining a policy for encouraging and supporting innovation across the organisation − Document and implement a policy for encouraging and supporting innovation across the organisation − Support the implementation of a policy for encouraging and supporting innovation across the organisation April 3.6. 2011 145 .

2011 146 .6.2 Participation in Decisions • Scope − Establish and implement a policy on the participation of personnel in decisions that affect their work commitments • Activities − Provide support for creating and maintaining a policy on the participation of personnel in decisions that affect their work commitments across the organisation − Document and implement a policy on the participation of personnel in decisions that affect their work commitments − Support the implementation of a policy on the participation of personnel in decisions that affect their work commitments across the organisation April 3.6 People Management .

6.3 Work Environment • Scope − Establish and maintain a work environment that enables personnel to work effectively • Activities − Provide support for creating and maintaining the work products and tasks for establishing and maintaining a work environment that enables personnel to work effectively − Document and implement the work products and tasks required for establishing and maintaining an effective work environment − Support the implementation of establishing and maintaining a work environment that enables personnel to work effectively April 3. 2011 147 .6 People Management .

6.4 Assign Responsibilities • Scope − Assign roles and responsibilities to personnel based on appropriate personnel competencies • Activities − Provide support for creating and maintaining the work products and tasks for assigning roles and responsibilities to personnel − Document and implement the work products and tasks required for assigning roles and responsibilities to personnel − Support the implementation of assigning roles and responsibilities to personnel April 3.6 People Management . 2011 148 .

responsibilities and authority of personnel in the organisation − Support the implementation of defining and communicating the roles. responsibilities and authority of personnel in the organisation April 3.6 People Management . 2011 149 . responsibilities and authority of personnel in the organisation − Document and implement the work products and tasks required for defining and communicating the roles.6. responsibilities and authority of personnel in the organisation • Activities − Provide support for creating and maintaining the work products and tasks for defining and communicating the roles.5 Define Roles • Scope − Define and communicate the roles.

2011 150 .6 Workforce Competencies • Scope − Develop the workforce competencies needed to achieve organisational objectives • Activities − Provide support for creating and maintaining the work products and tasks for developing workforce competencies − Document and implement the work products and tasks required for developing workforce competencies − Support the implementation of developing workforce competencies April 3.6 People Management .6.

7 Plan and Deliver Training • Scope − Establish and implement procedures to plan and deliver training • Activities − Provide support for creating and maintaining the procedures for planning and delivering training across the organisation − Document and implement the procedures for planning and delivering training − Support the implementation of the procedures for planning and delivering training across the organisation April 3.6.6 People Management . 2011 151 .

2011 152 .6 People Management .8 Plan and Deliver Training • Scope − Meet identified personnel competency needs by providing training • Activities − Provide support for creating and maintaining the work products and tasks for meeting identified personnel competency needs − Document and implement the work products and tasks required for meeting personnel competency needs − Support the implementation of meeting identified personnel competency needs April 3.6.

6 People Management .6.9 Performance Feedback • Scope − Establish and implement procedures to provide feedback on performance to personnel • Activities − Provide support for creating and maintaining the procedures for providing performance feedback to personnel across the organisation − Document and implement the procedures for providing performance feedback to personnel − Support the implementation of the procedures for providing performance feedback to personnel across the organisation April 3. 2011 153 .

2011 154 .10 Performance Feedback • Scope − Establish and implement procedures to provide personnel with opportunities for career development • Activities − Provide support for creating and maintaining the procedures for career development across the organisation − Document and implement the procedures for career development − Support the implementation of the procedures for career development across the organisation April 3.6 People Management .6.

11 Rewards • Scope − Provide rewards and recognition that encourage the achievement of organisational objectives • Activities − Provide support for creating and maintaining the work products and tasks for providing rewards and recognition that encourage the achievement of organisational objectives − Document and implement the work products and tasks required for establishing rewards and recognition to encourage the achievement of organisational objectives − Support the implementation of providing rewards and recognition that encourage the achievement of organisational objectives April 3.6 People Management . 2011 155 .6.

6 Proactively Introduce Technology 10.2 Select Suppliers and Partners 8.8 Respond to Requirements 3.9 Contract Roles 6.10 Performance Feedback 7.9 Performance Feedback 7.3 Service Continuity 2.8 Plan and Deliver Training 7.5 Personnel Transferred Out 2.Activities Outsourcing Capabilities and Skills Initiation/ Completion Delivery Ongoing 1 Service Transfer 2 Contracting 3 Service Design and Deployment 4 Service Delivery 5 Knowledge Management 6 People Management 7 Performance Management 8 Relationship Management 9 Technology Management 10 Threat Management 1.7 Disaster Recovery 2.5 Review Organisational Performance 8.1 Encourage Innovation 7.4 Market Information 3.3 Deliver Service 5.4 Cultural Fit 9.2 Verify Processes 8.10 Prevent Potential Problems 2.1 Client Interactions 9.2 Train Clients 5.7 Supplier and Partner Relationships 10.2 Technology Licenses 10.6 Reuse 6.1 Communicate Requirements 4.3 Adequate Resources 9.6 Gather Requirements 3.4 Service Specification 4.3 Risk Across Engagements 1.6 Prevent Known Problems 5.7 Performance Management .2 Design and Deploy Service 4.4 Organisational Objectives 7.8 Financial Management 5.5 Stakeholder Information 9.11 Rewards 7.8 Capability Baselines 8.7 Plan and Deliver Training 7.5 Correct Problems 5.3 Plan Design and Deployment 4.7 Service Modifications 5.1 Share Knowledge 6.5 Service Design 4.2 Personnel Transferred In 2.4 Technology Integration 10.1 Risk Management 1.11 Deploy Innovations April 3.6 Knowledge Transferred Out 2.3 Knowledge System 6.10 Create Contracts 6.7 Review Requirements 3.8 Value Creation 2.7 Version and Change Control 6.6 Design Feedback 4.4 Security 1.1 Plan Service Delivery 5.11 Amend Contracts 6.3 Confirm Existing Conditions 3.6 Make Improvements 8.3 Work Environment 7.7 Verify Design 4.8 Resource Consumption 6.1 Engagement Objectives 8.6 Statutory and Regulatory Compliance 2.7 Achieve Organisational Objectives 8.9 Benchmark 2.3 Manage Suppliers and Partners 9.2 Pricing 3.4 Assign Responsibilities 7.5 Define Roles 8.2 Participation in Decisions 7.1 Negotiations 3.6 Workforce Competencies 7.6 Client Relationships 9.2 Provide Required Information# 6.5 Intellectual Property 1.5 Engagement Knowledge 6.1 Resources Transferred In 2.5 Plan Negotiations 3. 2011 156 .3 Control Technology 10.4 Process Assets 6.2 Engagement Risk 1.4 Verify Service Commitments 5.5 Optimise Technology 10.4 Resources Transferred Out 2.1 Acquire Technology 10.8 Deploy Service 4.

7.7 Performance Management . communicating and tracking engagement objectives − Support the implementation of defining. communicating and tracking engagement objectives April 3. 2011 157 . communicate and track engagement objectives • Activities − Provide support for creating and maintaining the work products and tasks for defining.1 Engagement Objectives • Scope − Define. communicating and tracking engagement objectives − Document and implement the work products and tasks required for defining.

2 Verify Processes • Scope − Establish and implement procedures to verify that processes are consistently performed as defined • Activities − Provide support for creating and maintaining the procedures for verifying that processes are consistently performed as defined − Document and implement the procedures for verifying that processes are consistently performed as defined − Support the implementation of the procedures for verifying that processes are consistently performed as defined April 3.7 Performance Management . 2011 158 .7.

3 Adequate Resources • Scope − Identify and provide adequate resources that personnel need to perform their work • Activities − Provide support for creating and maintaining the work products and tasks for identifying and providing adequate resources to personnel − Document and implement the work products and tasks required for identifying and providing adequate resources to personnel − Support the implementation of identifying and providing adequate resources to personnel April 3.7.7 Performance Management . 2011 159 .

communicating and tracking organisational objectives − Support the implementation of defining. 2011 160 .4 Organisational Objectives • Scope − Define. communicating and tracking organisational objectives − Document and implement the work products and tasks required for defining. communicate and track organisational objectives • Activities − Provide support for creating and maintaining the work products and tasks for defining.7 Performance Management . communicating and tracking organisational objectives April 3.7.

5 Review Organisational Performance • Scope − Establish and implement procedures to review organisational performance • Activities − Provide support for creating and maintaining the procedures for reviewing organisational performance − Document and implement the procedures for reviewing organisational performance − Support the implementation of the procedures for reviewing organisational performance April 3.7 Performance Management . 2011 161 .7.

7 Performance Management .7. 2011 162 .6 Make Improvements • Scope − Make improvements based on reviews of organisational performance • Activities − Provide support for creating and maintaining the work products and tasks for making improvements across the organisation − Document and implement the work products and activities required to make improvements − Support the implementation of making improvements across the organisation April 3.

7 Performance Management .7 Achieve Organisational Objectives • Scope − Establish and implement programs to achieve organisational objectives • Activities − Provide support for creating and maintaining the work products and tasks for establishing and implementing programs to achieve organisational objectives − Document and implement the work products and tasks required for establishing programs to achieve organisational objectives − Support the implementation of programs to achieve organisational objectives April 3. 2011 163 .7.

7 Performance Management .7.8 Capability Baselines • Scope − Define capability baselines for the organisation by analysing performance data • Activities − Provide support for creating and maintaining the work products and tasks for defining capability baselines − Document and implement the work products and tasks required for defining capability baselines − Support the implementation of defining capability baselines April 3. 2011 164 .

7 Performance Management . 2011 165 .7.9 Benchmark • Scope − Benchmark organisational performance to identify opportunities for improvement • Activities − Provide support for creating and maintaining the work products and tasks for benchmarking organisational performance − Document and implement the work products and tasks required for benchmarking organisational performance − Support the implementation of benchmarking organisational performance April 3.

2011 166 .7 Performance Management .7.10 Prevent Potential Problems • Scope − Establish and implement programs to take preventive action on potential problems • Activities − Provide support for creating and maintaining the work products and tasks for establishing and implementing programs to take preventive action on potential problems − Document and implement the work products and tasks required for establishing programs to take preventive action on potential problems − Support the implementation of programs to take preventive action on potential problems April 3.

7 Performance Management .7.11 Deploy Innovations • Scope − Establish and implement programs to deploy innovations across the organisation • Activities − Provide support for creating and maintaining the work products and tasks for establishing and implementing programs to deploy innovations across the organisation − Document and implement the work products and tasks required for establishing programs to deploy innovations − Support the implementation of programs to deploy innovations across the organisation April 3. 2011 167 .

11 Amend Contracts 6.9 Performance Feedback 7.2 Pricing 3.1 Negotiations 3.5 Engagement Knowledge 6.1 Plan Service Delivery 5.2 Technology Licenses 10.1 Risk Management 1.10 Create Contracts 6.6 Workforce Competencies 7.5 Define Roles 8.2 Train Clients 5.6 Reuse 6.8 Plan and Deliver Training 7.2 Design and Deploy Service 4.3 Confirm Existing Conditions 3.5 Optimise Technology 10.Activities Outsourcing Capabilities and Skills Initiation/ Completion Delivery Ongoing 1 Service Transfer 2 Contracting 3 Service Design and Deployment 4 Service Delivery 5 Knowledge Management 6 People Management 7 Performance Management 8 Relationship Management 9 Technology Management 10 Threat Management 1.8 Value Creation 2.6 Client Relationships 9.10 Performance Feedback 7.2 Participation in Decisions 7.3 Risk Across Engagements 1.6 Make Improvements 8.9 Contract Roles 6.5 Personnel Transferred Out 2.4 Organisational Objectives 7.2 Provide Required Information# 6.8 Relationship Management .1 Client Interactions 9.3 Control Technology 10.2 Engagement Risk 1.3 Service Continuity 2.2 Verify Processes 8.11 Deploy Innovations April 3.3 Knowledge System 6.1 Encourage Innovation 7.6 Statutory and Regulatory Compliance 2.4 Assign Responsibilities 7.5 Stakeholder Information 9.7 Supplier and Partner Relationships 10.8 Respond to Requirements 3.4 Verify Service Commitments 5.7 Version and Change Control 6.4 Technology Integration 10.9 Benchmark 2.2 Select Suppliers and Partners 8.1 Acquire Technology 10.6 Design Feedback 4.3 Work Environment 7.10 Prevent Potential Problems 2.6 Knowledge Transferred Out 2.5 Intellectual Property 1.4 Cultural Fit 9.8 Capability Baselines 8.7 Plan and Deliver Training 7.8 Resource Consumption 6.3 Manage Suppliers and Partners 9.1 Engagement Objectives 8.4 Market Information 3.5 Plan Negotiations 3.4 Service Specification 4.3 Deliver Service 5.5 Review Organisational Performance 8.6 Prevent Known Problems 5.3 Adequate Resources 9.5 Service Design 4.7 Verify Design 4.7 Achieve Organisational Objectives 8. 2011 168 .4 Security 1.1 Share Knowledge 6.1 Resources Transferred In 2.4 Process Assets 6.7 Review Requirements 3.7 Disaster Recovery 2.6 Gather Requirements 3.2 Personnel Transferred In 2.3 Plan Design and Deployment 4.8 Deploy Service 4.4 Resources Transferred Out 2.7 Service Modifications 5.1 Communicate Requirements 4.11 Rewards 7.8 Financial Management 5.6 Proactively Introduce Technology 10.5 Correct Problems 5.

2011 169 .8 Relationship Management .8.1 Client Interactions • Scope − Establish and implement procedures to manage interactions with clients • Activities − Provide support for creating and maintaining the procedures for managing client interactions − Document and implement the procedures for managing client interactions − Support the implementation of the procedures for managing client interactions April 3.

2 Select Suppliers and Partners • Scope − Establish and implement procedures to select suppliers and partners based on their ability to meet identified requirements • Activities − Provide support for creating and maintaining the procedures for selecting suppliers and partners − Document and implement the procedures for selecting suppliers and partners − Support the implementation of the procedures for selecting suppliers and partners April 3. 2011 170 .8 Relationship Management .8.

2011 171 .8.8 Relationship Management .3 Manage Suppliers and Partners • Scope − Manage the performance of suppliers and partners against their commitments • Activities − Provide support for creating and maintaining the work products and tasks for managing the performance of suppliers and partners − Document and implement the work products and tasks required for managing the performance of suppliers and partners − Support the implementation of managing the performance of suppliers and partners April 3.

4 Cultural Fit • Scope − Identify cultural attributes that impact the service and implement actions to achieve a cultural fit • Activities − Provide support for creating and maintaining the work products and tasks for achieving a cultural fit across the organisation − Document and implement the work products and tasks required for achieving a cultural fit − Support the implementation of achieving a cultural fit across the organisation April 3.8 Relationship Management .8. 2011 172 .

5 Stakeholder Information • Scope − Analyse and use client and other stakeholder information • Activities − Provide support for creating and maintaining the work products and tasks for analysing and using client and other stakeholder information − Document and implement the work products and tasks required for analysing client and other stakeholder information − Support the implementation of analysing and using client and other stakeholder information April 3.8. 2011 173 .8 Relationship Management .

8 Relationship Management .6 Client Relationships • Scope − Establish and implement procedures to manage client relationships • Activities − Provide support for creating and maintaining the procedures for managing client relationships across the organisation − Document and implement the procedures for managing client relationships − Support the implementation of the procedures for managing client relationships across the organisation April 3. 2011 174 .8.

2011 175 .8.7 Supplier and Partner Relationships • Scope − Establish and implement procedures to manage relationships with suppliers and partners • Activities − Provide support for creating and maintaining the procedures for managing relationships with suppliers and partners across the organisation − Document and implement the procedures for managing relationships with suppliers and partners − Support the implementation of the procedures for managing relationships with suppliers and partners across the organisation April 3.8 Relationship Management .

8 Relationship Management .8.8 Value Creation • Scope − Proactively identify value creation opportunities and communicate them to the client • Activities − Provide support for creating and maintaining the work products and tasks for proactively identifying and communicating value creation opportunities across the organisation − Document and implement the work products and tasks proactively required for identifying and communicating value creation opportunities − Support the implementation of proactively identifying and communicating value creation opportunities across the organisation April 3. 2011 176 .

4 Organisational Objectives 7.2 Personnel Transferred In 2.9 Contract Roles 6.7 Plan and Deliver Training 7.6 Client Relationships 9.6 Workforce Competencies 7.8 Deploy Service 4.9 Performance Feedback 7.4 Service Specification 4.8 Capability Baselines 8.2 Select Suppliers and Partners 8.8 Plan and Deliver Training 7.5 Optimise Technology 10.5 Define Roles 8.6 Gather Requirements 3.1 Communicate Requirements 4.6 Reuse 6.9 Benchmark 2.1 Resources Transferred In 2.6 Design Feedback 4.7 Achieve Organisational Objectives 8.3 Manage Suppliers and Partners 9.3 Adequate Resources 9.2 Technology Licenses 10.6 Make Improvements 8. 2011 177 .5 Intellectual Property 1.1 Encourage Innovation 7.1 Plan Service Delivery 5.8 Financial Management 5.4 Technology Integration 10.7 Disaster Recovery 2.1 Acquire Technology 10.5 Review Organisational Performance 8.4 Cultural Fit 9.1 Risk Management 1.6 Prevent Known Problems 5.2 Pricing 3.4 Assign Responsibilities 7.4 Market Information 3.1 Share Knowledge 6.3 Risk Across Engagements 1.8 Value Creation 2.11 Rewards 7.10 Create Contracts 6.3 Service Continuity 2.11 Amend Contracts 6.5 Correct Problems 5.1 Engagement Objectives 8.9 Technology Management .2 Design and Deploy Service 4.2 Verify Processes 8.Activities Outsourcing Capabilities and Skills Initiation/ Completion Delivery Ongoing 1 Service Transfer 2 Contracting 3 Service Design and Deployment 4 Service Delivery 5 Knowledge Management 6 People Management 7 Performance Management 8 Relationship Management 9 Technology Management 10 Threat Management 1.4 Security 1.7 Review Requirements 3.3 Plan Design and Deployment 4.1 Negotiations 3.8 Resource Consumption 6.6 Proactively Introduce Technology 10.2 Engagement Risk 1.3 Confirm Existing Conditions 3.5 Personnel Transferred Out 2.7 Service Modifications 5.3 Deliver Service 5.6 Statutory and Regulatory Compliance 2.8 Respond to Requirements 3.3 Knowledge System 6.4 Process Assets 6.4 Verify Service Commitments 5.7 Verify Design 4.6 Knowledge Transferred Out 2.7 Supplier and Partner Relationships 10.10 Prevent Potential Problems 2.2 Provide Required Information# 6.2 Train Clients 5.11 Deploy Innovations April 3.7 Version and Change Control 6.2 Participation in Decisions 7.3 Control Technology 10.10 Performance Feedback 7.5 Service Design 4.3 Work Environment 7.5 Engagement Knowledge 6.4 Resources Transferred Out 2.1 Client Interactions 9.5 Plan Negotiations 3.5 Stakeholder Information 9.

2011 178 .9 Technology Management .9.1 Acquire Technology • Scope − Establish and implement procedures to acquire and deploy technology • Activities − Provide support for creating and maintaining the procedures for acquiring and deploying technology − Document and implement the procedures for acquiring and deploying technology − Support the implementation of the procedures for acquiring and deploying technology April 3.

9.2 Technology Licenses • Scope − Establish and implement procedures to manage technology licenses • Activities − Provide support for creating and maintaining the procedures for managing technology licenses − Document and implement the procedures for managing technology licenses − Support the implementation of the procedures for managing technology licenses April 3.9 Technology Management . 2011 179 .

9 Technology Management .9. 2011 180 .3 Control Technology • Scope − Establish and implement procedures to track and control changes to the technology infrastructure • Activities − Provide support for creating and maintaining the procedures for tracking and controlling changes to the technology infrastructure − Document and implement the procedures for tracking and controlling changes to the technology infrastructure − Support the implementation of the procedures for tracking and controlling changes to the technology infrastructure April 3.

9. 2011 181 .4 Technology Integration • Scope − Establish and implement procedures to manage integration of the organisation’s technology infrastructure • Activities − Provide support for creating and maintaining the procedures for managing integration of the technology infrastructure − Document and implement the procedures for managing integration of the technology infrastructure − Support the implementation of the procedures for managing integration of the technology infrastructure April 3.9 Technology Management .

5 Optimise Technology • Scope − Optimise the overall performance of the technology infrastructure needed to deliver all services • Activities − Provide support for creating and maintaining the work products and tasks for optimising the technology infrastructure across the organisation − Document and implement the work products and tasks required for optimising the technology infrastructure − Support the implementation of optimising the technology infrastructure across the organisation April 3.9 Technology Management . 2011 182 .9.

9 Technology Management .6 Proactively Introduce Technology • Scope − Establish and implement procedures to proactively identify and introduce appropriate technology • Activities − Provide support for creating and maintaining the procedures for proactively identifying and introducing technology across the organisation − Document and implement the procedures for proactively identifying and introducing technology − Support the implementation of the procedures for proactively identifying and introducing technology across the organisation April 3.9. 2011 183 .

7 Plan and Deliver Training 7.6 Statutory and Regulatory Compliance 2.4 Process Assets 6.10 Prevent Potential Problems 2.6 Design Feedback 4.6 Reuse 6.4 Assign Responsibilities 7.8 Plan and Deliver Training 7.1 Client Interactions 9.2 Provide Required Information# 6.9 Performance Feedback 7.5 Engagement Knowledge 6.5 Correct Problems 5.7 Review Requirements 3.10 Performance Feedback 7.8 Resource Consumption 6.3 Plan Design and Deployment 4.5 Service Design 4.3 Knowledge System 6.2 Participation in Decisions 7.5 Stakeholder Information 9.1 Encourage Innovation 7.11 Amend Contracts 6.8 Financial Management 5.7 Version and Change Control 6.4 Cultural Fit 9.10 Threat Management .5 Review Organisational Performance 8.4 Verify Service Commitments 5.7 Achieve Organisational Objectives 8.7 Supplier and Partner Relationships 10. 2011 184 .2 Engagement Risk 1.3 Confirm Existing Conditions 3.3 Manage Suppliers and Partners 9.2 Technology Licenses 10.4 Organisational Objectives 7.1 Plan Service Delivery 5.8 Respond to Requirements 3.10 Create Contracts 6.8 Capability Baselines 8.5 Personnel Transferred Out 2.8 Value Creation 2.3 Service Continuity 2.1 Acquire Technology 10.3 Risk Across Engagements 1.2 Select Suppliers and Partners 8.5 Optimise Technology 10.3 Adequate Resources 9.6 Gather Requirements 3.1 Resources Transferred In 2.2 Pricing 3.2 Train Clients 5.7 Disaster Recovery 2.4 Market Information 3.9 Benchmark 2.7 Service Modifications 5.3 Deliver Service 5.6 Proactively Introduce Technology 10.4 Technology Integration 10.Activities Outsourcing Capabilities and Skills Initiation/ Completion Delivery Ongoing 1 Service Transfer 2 Contracting 3 Service Design and Deployment 4 Service Delivery 5 Knowledge Management 6 People Management 7 Performance Management 8 Relationship Management 9 Technology Management 10 Threat Management 1.5 Plan Negotiations 3.9 Contract Roles 6.4 Security 1.6 Make Improvements 8.11 Deploy Innovations April 3.7 Verify Design 4.6 Knowledge Transferred Out 2.6 Prevent Known Problems 5.1 Negotiations 3.2 Design and Deploy Service 4.4 Resources Transferred Out 2.2 Personnel Transferred In 2.5 Intellectual Property 1.8 Deploy Service 4.5 Define Roles 8.1 Communicate Requirements 4.2 Verify Processes 8.6 Workforce Competencies 7.1 Share Knowledge 6.6 Client Relationships 9.3 Work Environment 7.11 Rewards 7.1 Risk Management 1.1 Engagement Objectives 8.4 Service Specification 4.3 Control Technology 10.

10.1 Risk Management • Scope − Establish and implement a policy on risk management • Activities − Provide support for creating and maintaining a policy for managing risk − Document and implement a policy for managing risk − Support the implementation of a policy for managing risk April 3. 2011 185 .10 Threat Management .

10 Threat Management . 2011 186 . assess and manage engagement-specific risks − Support the implementation of identifying. assessing and managing engagementspecific risks − Document and implement the work products and activities required to identify. assessing and managing engagement-specific risks April 3.10. assess and manage risks specific to the client engagement • Activities − Provide support for creating and maintaining the work products and tasks for identifying.2 Engagement Risk • Scope − Identify.

10. 2011 187 .3 Risk Across Engagements • Scope − Establish and implement procedures to manage risks across client engagements • Activities − Provide support for creating and maintaining the procedures for managing risks across client engagements − Document and implement the procedures for managing risks across client engagements − Support the implementation of the procedures for managing risks across client engagements April 3.10 Threat Management .

10.4 Security • Scope − Establish and implement procedures to meet security requirements • Activities − Provide support for creating and maintaining the procedures for meeting security requirements − Document and implement the procedures for meeting security requirements − Support the implementation of the procedures for meeting security requirements April 3.10 Threat Management . 2011 188 .

10.5 Intellectual Property • Scope − Establish and implement procedures to protect the intellectual property of stakeholders • Activities − Provide support for creating and maintaining the procedures for protecting the intellectual property of stakeholders − Document and implement the procedures for protecting the intellectual property of stakeholders − Support the implementation of the procedures for protecting the intellectual property of stakeholders April 3.10 Threat Management . 2011 189 .

10.10 Threat Management .6 Statutory and Regulatory Compliance • Scope − Establish and implement procedures to comply with statutory and regulatory requirements • Activities − Provide support for creating and maintaining the procedures for statutory and regulatory compliance − Document and implement the procedures for statutory and regulatory compliance − Support the implementation of the procedures for statutory and regulatory compliance April 3. 2011 190 .

7 Disaster Recovery • Scope − Establish and implement disaster recovery procedures • Activities − Provide support for creating and maintaining the procedures for disaster recovery − Document and implement the procedures for disaster recovery − Support the implementation of the procedures for disaster recovery April 3.10 Threat Management . 2011 191 .10.

2011 192 .Outsourcing for End-User Organisations April 3.

2011 193 • • • • . selecting and negotiating with service providers Conducting service provider governance and performance management Managing relationships with their service providers April 3.Outsourcing Challenges • • • Establishing an appropriate outsourcing strategy Identifying capabilities that could be outsourced Developing appropriate approaches for outsourcing activities Managing risks throughout their outsourcing activities Identifying.

Reasons for Adopting a Structured Approach to Outsourcing • • • • • • • • • • • • Provides a focus on outsourcing management for IT-enabled services Builds confidence and trust with all stakeholders Enables effective communication with all stakeholders Provides increased agility through improved capability to effectively manage change Enables risks to be managed effectively Provides effective business controls Enables continual improvement of process and performance Allows the organisation to focus on core competencies and strategic operations Builds and sustains the competence to effectively manage the outsourcing strategy and outsourcing engagements Improves outsourcing governance Allows enhanced supplier/partner relationship management capabilities Provides for service measurement that supports action April 3. 2011 194 .

Key Issues For Successful Outsourcing • Same issues arise for outsourcing organisations as for service providers Additional issues that arise for outsourcing organisations − Establishing a strategy for the organisation’s outsourcing activities − Being an informed buyer of outsourcing services − Actively managing outsourcing risks • April 3. 2011 195 .

or key/non-key) should be retained in the organisation − Consider if non-core activities are being outsourced too automatically − Ensure that the organisation gives adequate consideration to the full economic impact of its outsourcing activities April 3. − Guide analysis activities to prepare for and overcome difficulties in the initial decision making − Ensure that the organisation understands which capabilities or processes (strategic/non-strategic. 2011 196 . growth and continuity strategies − Be defined. documented and followed − Be regularly updated as conditions change.Establishing a Strategy For the Organisation’s Outsourcing Activities • • • May not have sufficient focus on analysis.Outsourcing Organisation Issue 1 . core/non-core. initiation and completion activities May not have a strategy for outsourcing or may have a strategy that is not synchronised or aligned with the IT or corporate strategies Outsourcing strategy should − Clearly describe outsourcing objectives − Be aligned with with the organisation’s business.

Being an Informed Buyer of Outsourcing Services • • • • • • • Be an informed customer of outsourcing services Decisions often made to outsource without considering the fit with broader or long-term business strategies.often leads to more distress − Passing a problem to a service provider does not eliminate the problem . whether outsourcing is appropriate or if they are joining a fad.it increases the number of parties involved in or trying to solve it April 3.Outsourcing Organisation Issue 2 .outsourcing a problem area as a way to solve that problem . 2011 197 . or the risks of losing internal expertise Be actively involved in managing the activities in the analysis and initiation phases of the outsourcing lifecycle Outsourcing should be a part of the organisation’s process management approach Develop a competency in outsourcing and managing outsourcing relationships Many view their outsourcing activities as separate isolated projects Avoid “distress outsourcing” . the impact on short-term organisational performance.

accountability or risks associated with the outsourced activity Client organisations should actively identify. where a highly visible problem at the service provider is a potential problem for the client due to adverse publicity April 3. corporate strategy and IT strategies − Potential changes in client’s business practices and processes − In-house resistance and poor communication − Change management efforts are often neglected or ignored − Lack of clear division of responsibilities between client organisations and their service providers − Communications difficulties with the service providers due to cultural differences or poorly-defined service provider interactions − Potential dependency on service providers − Reputation risks. manage and mitigate all relevant risks − Poor strategic planning with respect to outsourcing − Inadequate alignment of the outsourcing strategy. 2011 198 .Outsourcing Organisation Issue 3 .Actively Managing Outsourcing Risks • • Outsourcing is not the transfer the governance.

2011 199 .Phases of Outsourcing Relationship for End-User Organisations Ongoing Analysis Initiation Delivery Completion April 3.

2011 200 . processes or functions that could potentially be outsourced and develops the approach to be taken to source the identified opportunities − Initiation – prepare for and transition to provision of service − Delivery – provide service and manage and measure its provision − Completion – close-out the service after the contract ends or the service has been terminated − Ongoing – management of outsourcing lifecycle April 3.Phases of Outsourcing Relationship • Every outsourcing relationship has five phases − Analysis – analyse operations and functions to identify those services.

2011 201 . processes. or functions that could potentially be outsourced − Understanding the current. or as-is. state of the client organisation’s structure and processes − Identifying the relevant criteria for selecting outsourcing opportunities − Identifying outsourcing opportunities to meet outsourcing objectives and criteria − Organising options for outsourcing − Developing and validating the Business Case for each outsourcing option − Identifying the outsourcing approach and governance model for the proposed outsourcing action − Performing impact and risk analyses of the proposed outsourcing action − Making the decision whether or not to source the proposed outsourcing action April 3.Analysis Phase • Concerned with analysing operations and functions to identify those services.

2011 202 . quality and other topics that need to be negotiated − Defining the formal service level agreements and service provider performance measures − Understanding service provider’s capabilities by gathering information about the service provider and confirming the assumptions that impact commitments − Establishing a formal agreement with service providers that clearly articulates the clients’ and service provider’s responsibilities and commitments − Providing feedback on the service design in order to ensure that the services are meeting the client’s requirements and the agreed-upon commitments − Managing the effective transfer of resources needed for service delivery. including personnel. technology infrastructure and work environment April 3.Initiation Phase • Concerned with preparation for and initiation of managing outsourced services − Preparing for service selection by developing the solicitation and criteria for selection − Soliciting and evaluating potential service providers − Preparing for negotiation by having an organisational position on cost.

Delivery Phase • Concerned with monitoring the service provider’s service delivery capabilities. management of the finances and agreements associated with the service provision. including the ongoing monitoring of service provider performance to verify that commitments are being met. monitoring changes. fostering realistic expectations and performing value analysis − Planning and tracking the outsourcing management activities − Ensuring that services are delivered according to the agreed-upon commitments − Managing the finances associated with the service delivery − Identifying and controlling modifications to the services being provided or to the associated service commitments − Facilitating problem resolution for problems that impact the service delivery − Reconciling performance against expectations and ensuring that the service provision returns value to the client organisation April 3. 2011 203 .

during renewal. whether it is to back to the organisation or to another service provider including the potential transfer of people.Completion Phase • Concerned with closing down the engagement at the end of the outsourcing lifecycle − Planning for closing down a outsourced service and managing the agreement during the close-down period including managing the agreement during termination proceedings. technology infrastructure and intellectual property − Ensuring service continuity during the transfer of responsibilities for service provision − Identifying and transferring the knowledge capital critical for the delivery of service April 3. 2011 204 . or during normal completion − Managing the transfer of resources to the new service provider.

2011 205 . systems and applications infrastructure used to support delivery of service April 3.Ongoing Phase • Management functions that need to be performed during the entire outsourcing lifecycle − Manage and motivate personnel to effectively deliver services − Manage relationships with clients. suppliers and business partners − Measure and review the organisation’s performance and taking action to improve it − Manage information and knowledge systems so that personnel have access to the knowledge needed to effectively perform their work − Identify and control threats to the organisation’s ability to meet its objectives and client requirements − Manage the technology.

Key Capabilities Within Outsourcing Lifecycle for End-User Organisations Outsourcing Strategy Management Governance Management Relationship Management Value Management Organisational Change Management Technology Management People Management Ongoing Threat Management Knowledge Management Analysis Outsourcing Opportunity Analysis Outsourcing Planning Outsourcing Approach Service Provider Evaluation Initiation Delivery Completion Outsourcing Agreements Sourced Services Management Outsourcing Completion Service Transfer April 3. 2011 206 .

1 Service Transition 8.5 Problem and Incident Monitoring 5.6 Create Agreements 7.5 Prepare Service Requirements 5.1 Negotiations Guidelines 6.3 Governance Model 3.9 Stakeholder Feedback 7.3 Resources Transferred Out 7.1 Communicate Requirements 4.3 Financial Management 8.2 Service Continuity 1.1 Outsourcing Capabilities and Skills Analysis Phase Initiation Phase Delivery Phase Completion Phase 1 Outsourcing Opportunity Analysis 2 Outsourcing Approach 3 Outsourcing Planning 4 Service Provider Evaluation 5 Outsourcing Agreements 6 Service Transfer 7 Sourced Services Management 7.4 Personnel Transferred Out 7.1 Perform Outsourcing Management 7.2 Confirm Existing Conditions 6.1 Define Current State 2.3 Service Provider Selection Procedures 5.3 Demand Identification 2.4 Impact and Risk Analysis 3.2 Service Definition 5.1 Establish Outsourcing Project 4.2 Evaluate Potential Service Providers 4.10 Service Value Analysis 7.4 Outsourcing Options 2.1 Completion Planning 1.6 Service Delivery Change Management 5.4 Agreement Management 2.7 Amend Agreements 7.4 Evaluation Criteria 5.5 Knowledge Transferred Out 7.5 Outsourcing Initiation Decision 3.3 Select Candidate Service Providers 5.Key Capabilities and Constituent Practices of Outsourcing Process .5 Knowledge Transfer from Service Provider 1.11 Continuation Decision April 3. 2011 207 .2 Verify Design 8.7 Service Change Management 7.2 Performance Monitoring 8 Outsourcing Completion 1.3 Negotiations 6.3 Resources Transfer from Service Provider 8.4 Agreement Roles 6.5 Define SLAs and Measures 6.2 Business Case 3.4 Personnel Transfer from Service Provider 8.1 Outsourcing Approach 3.2 Outsourcing Criteria 2.8 Review Service Performance 7.

5 Cultural Fit 12.3 Technology Integration 17.3 Potential Outsourcing Areas 10.5 Organisational Outsourcing Strategy 10.1 Outsourcing Policy 11.6 Organisational Change 17.2 License Management 17.4 Security and Privacy 9.1 Provide Required Information 16.4 Improve Outsourcing Processes 13.3 Market Information 16.5 Share Knowledge 17.1 Prepare for Organisational Change 14.5 Communicate Organisational Changes 15.4 Lessons Learned 17.2 Stakeholder Involvement 14.Key Capabilities and Constituent Practices of Outsourcing Process .1 Outsourcing Sponsorship 10.3 Intellectual Property 9.7 Outsourcing Alignment April 3.4 Defined Outsourcing Processes 11.5 Align Strategy and Architectures 11.1 Assign Outsourcing Responsibilities 15.6 Business Value and Impact 13.7 Innovative Relationships 12.3 Define Future State 14.2 Service Provider Relationships 12.2 Service Provider Management 11.4 Outsourcing Objectives 10.2 Outsourcing Capabilities and Skills Ongoing Phase Governance Focused Competency and Change Focused Environment Focused 9 Outsourcing Strategy Management 10 Governance Management 11 Relationship Management 12 Value Management 13 Organisational Change Management 14 People Management 15 Knowledge Management 16 Technology Management 17 Threat Management 9.3 Organisational Outsourcing Competency 15.2 Personnel Competencies 15.6 Business Process Integration 11.1 Organisational Outsourcing Performance 13.1 Outsourcing Risk Management 9.6 Business Continuity 10.3 Internal Relationships 12.5 Compliance 10.6 Collaborative Relationships 12.7 Adapt to Business Change 11.2 Capability Baselines 13.2 Outsourcing Constraints 10. 2011 208 .5 Innovation 13.2 Organisational Risk Management 9.4 Human Resource Changes 14.1 Asset Management 17.2 Knowledge System 16.3 Benchmark Outsourcing Processes 13.3 Internal Stakeholder Management 11.4 Issue Management 12.1 Service Provider Interactions 12.4 Define Roles 15.

size of system/application being outsourced.Key Capabilities and Constituent Practices • Idealised set of steps for an organisation looking to outsource to perform when initiating the project Provides a detailed checklist of work to be done Each practices contains a set of activities and tasks Can be modified to suit the circumstances: scope of outsourcing. duration of contract Can forms the basis of a project plan for elements of outsourcing work such as initiation Reduces risk of failure Assists with the selection of the most suitable outsourcing partner • • • • • • April 3. 2011 209 .

Outsourcing Opportunity Analysis Functional analysis of the current operations of the organisation and identification of potential functions. 2011 210 . processes or services that could be outsourced • Addresses the critical issues of being an informed buyer of outsourcing services and translating implicit and explicit needs into defined requirements with agreed-upon levels of quality • Document the current state and understand the current business processes of the organisation • Determine the criteria for selecting outsourcing opportunities • Organise outsourcing opportunities • April 3.Analysis Phase .

2011 211 . including the outsourcing approach and the operational governance model of the proposed outsourcing action Preparing a business case for outsourcing which includes carrying out a cost-benefit analysis and determining stakeholder buy-in Organising the impact and risks of the proposed outsourcing action Making the decision whether or not to source the proposed outsourcing action • • • • • April 3.Outsourcing Approach • Deciding on the type of outsourcing for a specific outsourcing opportunity Determining the proposed outsourcing approach Deciding on the type of outsourcing arrangements desired.Analysis Phase .

including manpower. requests and requirements to prospective service providers April 3.Initiation Phase . ready to execute the outsourcing agreement Developing a outsourcing plan for a planned outsourcing activity Developing the Service(s) Requirements Document or Service(s) Definitions Document and having the basic structure of the agreement in place Developing any documentation needed to communicate the client’s inquiries.Outsourcing Planning • Planning for implementation of the outsourcing approach for a planned outsourcing initiative Establishing a capability to plan and manage the outsourced service. 2011 212 • • • • . Getting all the resources.

Service Provider Evaluation • Soliciting potential service providers. 2011 213 . screening the set of potential service providers and selecting the preferred service providers Comparing and assessing alternative solutions and service providers in their ability to create business value. benefits and cost savings. delivery service quality and flexibility to accommodate business changes throughout the planned duration of the agreement • April 3.Initiation Phase .

Establishing a formal agreement with service providers that clearly articulates the clients’ and service provider’s responsibilities and commitments April 3. negotiating terms and conditions of the agreements and entering into an agreement with the selected service providers Dealing with renegotiation and making changes to agreements Preparing for negotiation by having an organisational position on cost and other topics that need to be negotiated Defining formal service level agreements and service provider performance measures Understanding service provider’s capabilities by gathering information about the service provider Working with service providers to confirm the assumptions that impact commitments. 2011 214 .Initiation Phase .Outsourcing Agreements • • • • • • • Carrying out service confirmation.

ensuring service design meets the client’s needs. 2011 215 . creating client/service provider teams. and transferring resources.Service Transfer • Successfully transferring resources between the client organisation and its service providers by creating and implementing a transfer plan. personnel and knowledge to service provider Planning and managing the service transfer Reviewing the service provider’s service design information Transferring knowledge and personnel to the service provider Transferring resources. including technology infrastructure and work environment to the service provider • • • • April 3. identifying key skill sets/personnel to retain in-house or transfer to the service providers.Initiation Phase .

2011 216 . if required. monitoring SLAs. addressing fostering realistic expectations of the service provider performance (expectation management) and managing problems Managing changes Reviewing the service provider’s performance against the agreed-upon deliverables required business benefits.Sourced Services Management • • • • • • • Having the capability to manage service providers and the issues and challenges that arise after the agreement has been reached Focus on operational issues like measuring performance against the SLAs. Responsibility for managing and monitoring the financial control for the agreement Responsibility for the administration of the agreement and ensuring that the service provider is executing according to the terms and conditions of the agreement Focus on managing relations with the service providers of a outsourced service. soliciting and evaluating feedback from stakeholders and reviewing performance against the agreed upon service commitments and deliverables April 3.Delivery Phase . managing performance and taking corrective action.

ensuring all deliverables are consolidated (code. system documentation. lessons learned.Completion Phase . 2011 217 . as directed by the client organisation April 3. etc) and are handed back to the client.Outsourcing Completion • • • • • • Planning and making provisions for the closure of the relationship/project and ensuring that the hand off is smooth Assessing the outcome of the outsourced service as well as the performance of the service provider and in-house teams Ensure continuity of service during completion Ensuring that the project effectiveness. along with required knowledge transfer. best practices and key project metrics are documented Enable evaluation of performance measures across other outsourcing projects to serve as guides for undertaking future outsourcing initiatives Following a formal process for concluding the outsourced service.

Ongoing Phase . or other forms of outsourcing agreements • April 3. how to structure the outsourcing.Outsourcing Strategy Management • Determining the outsourcing strategy and setting organisational objectives or goals for outsourcing Address issues such as will the organisation be outsourcing. alliance. and what kind of outsourcing strategy to follow in terms of single source. best source. 2011 218 .

as well as supplier and partner relationships. control of technology architecture and design and future technology direction for the client organisation April 3.Governance Management • Establishing organisational structure for outsourcing and organisational process management for outsourcing processes and procedures Ensuring the effectiveness of interactions with stakeholders. managing relationships between clients and service providers. building flexibility and increasing responsiveness to meet Ensuring alignment of outsourced services with the client organisation’s strategy and architecture Addressing issues related to aligning outsourcing with the technology strategy. to ensure that commitments are met. 2011 219 • • • .Ongoing Phase . innovating.

2011 220 .Ongoing Phase .Relationship Management • Establishing and managing long-term relations with the service providers and developing relationships with service providers Managing long term relations with the service providers Managing agreements. managing expectations and managing issues and managing operations • • April 3.

ensuring that continuous improvement enables relationships where the client organisation and the service provider can effectively meet or exceed stakeholder value drivers April 3.Ongoing Phase . 2011 221 . competitive analysis of its outsourcing performance as compared to that of other client organisations and organizing performance of internal outsourcing processes Reviewing the outsourcing strategy for business alignment and Institutionalising the culture of innovation.Value Management • • • • Fostering and managing the culture of continuous improvement so that the client derives value from the outsourcing engagement and ensuring ongoing alignment of the outsourcing strategy and the organisation’s outsourcing performance with the organisation’s objectives Reviewing the business requirements against market benchmarks by benchmarking the performance of the organisation.

Organisational Change Management • • • • • • • Change management process to guide the client’s adoption of new systems (organisational and technological) and new ways of achieving business objectives through outsourcing Ensuring readiness for change and involving relevant sponsors and stakeholders Preparing for the change management process to guide the client organisation’s adoption of the new systems (the organisational and technological changes). both internal and external.Ongoing Phase . developing a team of change management leaders. defining the proper strategy for managing change. 2011 222 . identifying and employing long term change management practices and engaging employees and service providers Re-engineering the organisation and business processes and workflows to fit the new structure Developing and executing the communication strategies and plans. is very critical for the entire organisational change process Managing the human aspects of change Managing ongoing change and overcoming resistance to change and implementing methodologies to ensure effective and successful overall management of the organisational change April 3.

People Management • Providing and managing skilled resources and the necessary environment for the organisation’s outsourcing activities Clearly defining and communicating outsourcing roles and responsibilities to personnel Identifying workforce and personnel competency needs and developing (i. training) or acquiring personnel with the necessary competencies to perform the organisation’s outsourcing activities • • April 3.e. 2011 223 .Ongoing Phase ..

2011 224 .Knowledge Management Managing information and knowledge systems so that personnel have easy access to the knowledge needed to effectively perform their work • Ensuring that outsourcing information is appropriately made available and providing the information needed by personnel in a knowledge system that allows controlled. access • Maintaining information and lessons learned to improve current and future outsourcing performance • Understanding the market and screening the potential set of service providers and assisting them in understanding the organisation’s needs • April 3.Ongoing Phase . but efficient.

Ongoing Phase . Managing technology assets and the licensing of technology • April 3. 2011 225 .Technology Management • • Monitoring and managing the technology infrastructure Managing the change of the technology base and ensuring that technology strategy and architecture are managed consistent with business needs.

consistent with the organisation’s existing risk management policies. assessing and controlling risks • Managing security. privacy. 2011 226 . by identifying. confidentiality and intellectual property threats • Ensuring business continuity. including concerns regarding recovery from disasters • Monitoring statutes and regulations to ensure compliance • April 3.Threat Management Identifying and actively managing threats to the client organisation’s ability to meet its business and outsourcing objectives and requirements • Managing outsourcing risks.Ongoing Phase .

1 Communicate Requirements 4.1 Negotiations Guidelines 6.4 Personnel Transferred Out 7.3 Financial Management 8. 2011 227 .2 Evaluate Potential Service Providers 4.2 Service Continuity 1.3 Resources Transfer from Service Provider 8.Activities Outsourcing Capabilities and Skills Analysis Phase Initiation Phase Delivery Phase Completion Phase 1 Outsourcing Opportunity Analysis 2 Outsourcing Approach 3 Outsourcing Planning 4 Service Provider Evaluation 5 Outsourcing Agreements 6 Service Transfer 7 Sourced Services Management 7.3 Demand Identification 2.1 Define Current State 2.3 Select Candidate Service Providers 5.4 Personnel Transfer from Service Provider 8.2 Confirm Existing Conditions 6.4 Agreement Management 2.3 Governance Model 3.4 Evaluation Criteria 5.1 Perform Outsourcing Management 7.1 Service Transition 8.5 Prepare Service Requirements 5.2 Business Case 3.5 Outsourcing Initiation Decision 3.5 Knowledge Transferred Out 7.11 Continuation Decision April 3.1 Establish Outsourcing Project 4.9 Stakeholder Feedback 7.5 Problem and Incident Monitoring 5.6 Service Delivery Change Management 5.7 Amend Agreements 7.3 Negotiations 6.5 Knowledge Transfer from Service Provider 1.6 Create Agreements 7.5 Define SLAs and Measures 6.2 Verify Design 8.2 Performance Monitoring 8 Outsourcing Completion 1.1 Outsourcing Opportunity Analysis .4 Agreement Roles 6.3 Resources Transferred Out 7.4 Impact and Risk Analysis 3.7 Service Change Management 7.8 Review Service Performance 7.1 Completion Planning 1.10 Service Value Analysis 7.1 Outsourcing Approach 3.3 Service Provider Selection Procedures 5.4 Outsourcing Options 2.2 Service Definition 5.2 Outsourcing Criteria 2.

1. requirements and business case for potential outsourcing actions − Not establishing a baseline understanding of current processes can lead to illinformed outsourcing decisions and greater risk in achieving the planned objectives for outsourcing actions • Activities − Provide support for creating and maintaining the work products and tasks for documenting the current organisational structure and process model − Document and implement the work products and tasks required for documenting the current organisational structure and process model − Support the implementation of documenting the current organisational structure and process model April 3.1 Define Current State • Scope − Document the current organisational structure and process model − A solid understanding of the current state of the organisation can serve as a basis for defining the services. their performance and service levels. 2011 228 .1 Outsourcing Opportunity Analysis .

such as to source functions that produce the highest cost savings return at the lowest cost and risk • Activities − Provide support for creating and maintaining the work products and tasks for defining the relevant criteria for identifying outsourcing opportunities − Document and implement the work products and tasks required for defining the relevant criteria for identifying outsourcing opportunities − Support the implementation of defining the relevant criteria for identifying outsourcing opportunities April 3.1.1 Outsourcing Opportunity Analysis .2 Outsourcing Criteria • Scope − Define the relevant criteria for identifying outsourcing opportunities − Criteria should align with the organisational outsourcing strategy and objectives so that the client’s resources are focused on the opportunities most likely to meet the organisation’s outsourcing objectives. 2011 229 .

or more risky outsourcing opportunities • Activities − Provide support for creating and maintaining the work products and tasks for identifying potential outsourcing opportunities − Document and implement the work products and tasks required for identifying potential outsourcing opportunities − Support the implementation of identifying potential outsourcing opportunities April 3. 2011 230 . which will lead to further analysis of whether these potential opportunities should be pursued − Without taking a disciplined approach to this decision-making. while also meeting the defined criteria.1. the organisation risks selecting less than optimum outsourcing opportunities.1 Outsourcing Opportunity Analysis .3 Demand Identification • Scope − Identify potential outsourcing opportunities − Focus on those opportunities most likely to meet the organisation’s outsourcing objectives.

assessment of the external supply market (identification of potential service providers).4 Outsourcing Options • Scope − Organise the options that the organisation has to source the services.1.1 Outsourcing Opportunity Analysis . 2011 231 . like assessment of the criticality of the business activity. deciding on the relevant types of outsourcing relationship and aligning outsourcing decisions with performance and business needs − Necessary in order to have a firm basis for developing the business case for any outsourcing activity • Activities − Provide support for creating and maintaining the work products and tasks for organizing outsourcing options for potential outsourcing opportunities − Document and implement the work products and tasks required for organizing outsourcing options for potential outsourcing opportunities − Support the implementation of organizing outsourcing options for potential outsourcing opportunities April 3.

6 Service Delivery Change Management 5.8 Review Service Performance 7.3 Select Candidate Service Providers 5.5 Knowledge Transferred Out 7.4 Personnel Transfer from Service Provider 8.2 Confirm Existing Conditions 6.1 Perform Outsourcing Management 7.3 Financial Management 8.5 Knowledge Transfer from Service Provider 1.1 Communicate Requirements 4.5 Outsourcing Initiation Decision 3.3 Negotiations 6.4 Agreement Roles 6.2 Service Definition 5.5 Prepare Service Requirements 5.10 Service Value Analysis 7.5 Define SLAs and Measures 6. 2011 232 .3 Demand Identification 2.4 Agreement Management 2.9 Stakeholder Feedback 7.2 Business Case 3.2 Outsourcing Criteria 2.7 Service Change Management 7.1 Service Transition 8.4 Personnel Transferred Out 7.3 Resources Transfer from Service Provider 8.4 Evaluation Criteria 5.1 Negotiations Guidelines 6.2 Verify Design 8.2 Outsourcing Approach .2 Performance Monitoring 8 Outsourcing Completion 1.2 Evaluate Potential Service Providers 4.11 Continuation Decision April 3.1 Define Current State 2.5 Problem and Incident Monitoring 5.1 Outsourcing Approach 3.4 Impact and Risk Analysis 3.2 Service Continuity 1.1 Establish Outsourcing Project 4.1 Completion Planning 1.6 Create Agreements 7.3 Service Provider Selection Procedures 5.4 Outsourcing Options 2.3 Governance Model 3.Activities Outsourcing Capabilities and Skills Analysis Phase Initiation Phase Delivery Phase Completion Phase 1 Outsourcing Opportunity Analysis 2 Outsourcing Approach 3 Outsourcing Planning 4 Service Provider Evaluation 5 Outsourcing Agreements 6 Service Transfer 7 Sourced Services Management 7.7 Amend Agreements 7.3 Resources Transferred Out 7.

2011 233 .2 Outsourcing Approach .2.1 Outsourcing Approach • Scope − Identify and document the outsourcing approach for the proposed outsourcing action − Examine possible alternatives and determine the preferable approach − Establishing the outsourcing approach includes defining the specific objectives and outsourcing approach (or procurement strategy) to be used in selecting service providers • Activities − Provide support for creating and maintaining the work products and tasks for identifying and documenting the outsourcing approach for the proposed outsourcing action − Document and implement the work products and tasks required for identifying and documenting the outsourcing approach for the proposed outsourcing action − Support the implementation of identifying and documenting the outsourcing approach for the proposed outsourcing action April 3.

2 Business Case • Scope − Establish and implement procedures to develop and validate the business case for outsourcing − Quantitative and qualitative measures help determine the full effect of the proposed outsourcing action − Business case should be based on accurate data − Preliminary estimate of potential costs should not overlook the “extra” costs.2 Outsourcing Approach . such as potential knowledge transfer and governance and coordination costs for managing the service providers and their relationships − Business case enables decision makers to assess the full costs. benefits and risks of the potential outsourcing opportunity • Activities − Provide support for creating and maintaining the procedures for developing and validating the business case for outsourcing − Document and implement the procedures required for developing and validating the business case for outsourcing − Support the implementation of developing and validating the business case for outsourcing April 3. 2011 234 .2.

2011 235 .2 Outsourcing Approach . risk. conflict resolution and responsibility for the proposed outsourcing action will be executed among the client’s stakeholders. outsourcing organisation and service providers − Governance model will help ensure that • The service provider delivers services as promises and meets service commitments smoothly and effectively • The client can make the right decisions at the right time • The client can effectively manage key stakeholders’ expectations for service delivery • Activities − Provide support for creating and maintaining the work products and tasks for identifying and documenting the governance model for the proposed outsourcing action − Document and implement the work products and tasks required for identifying and documenting the governance model for the proposed outsourcing action − Support the implementation of identifying and documenting the governance model for the proposed outsourcing action April 3.2.3 Governance Model • Scope − Identify and document the governance model for the proposed outsourcing action − Governance model helps clarify how the client will manage the proposed outsourcing action − Used to describe how the processes and authority for service delivery.

2 Outsourcing Approach .4 Impact and Risk Analysis • Scope − Perform impact and risk analyses of the proposed outsourcing action − Identify. 2011 236 . organise and prioritise risks of the proposed outsourcing action − Provides the foundation for proactive risk management throughout the life of the outsourcing initiative − Risk analysis increases confidence in ability to manage risk and ability to ensure an appropriate level of service delivery despite the occurrence of problems • Activities − Provide support for creating and maintaining the work products and tasks for performing impact and risk analyses of the proposed outsourcing action − Document and implement the work products and tasks required for performing impact and risk analyses of the proposed outsourcing action − Support the implementation of performing impact and risk analyses of the proposed outsourcing action April 3.2.

2 Outsourcing Approach . consistent with the outsourcing objectives for the client organisation.2. impact/risk analyses and business case analyses − Outsourcing decision sets the groundwork for future governance and outsourcing management activities − Crucial that the decision be well-informed and supported by relevant data − Need to avoid a decision being made in the blind without adequate consideration of its implications for the organisation as it moves forward • Activities − Provide support for creating and maintaining the work products and tasks for deciding to initiate the proposed outsourcing action − Document and implement the work products and tasks required for deciding to initiate the proposed outsourcing action − Support the implementation of deciding to initiate the proposed outsourcing action April 3.5 Outsourcing Initiation Decision • Scope − Decide to initiate the proposed outsourcing action − Makes a outsourcing initiation decision whether or not to source the proposed outsourcing action. 2011 237 .

2 Outsourcing Criteria 2.1 Service Transition 8.5 Knowledge Transfer from Service Provider 1.3 Resources Transferred Out 7. 2011 238 .6 Service Delivery Change Management 5.8 Review Service Performance 7.1 Communicate Requirements 4.2 Verify Design 8.3 Service Provider Selection Procedures 5.3 Governance Model 3.1 Define Current State 2.11 Continuation Decision April 3.Activities Outsourcing Capabilities and Skills Analysis Phase Initiation Phase Delivery Phase Completion Phase 1 Outsourcing Opportunity Analysis 2 Outsourcing Approach 3 Outsourcing Planning 4 Service Provider Evaluation 5 Outsourcing Agreements 6 Service Transfer 7 Sourced Services Management 7.3 Resources Transfer from Service Provider 8.1 Completion Planning 1.4 Evaluation Criteria 5.3 Financial Management 8.9 Stakeholder Feedback 7.5 Outsourcing Initiation Decision 3.4 Agreement Roles 6.2 Performance Monitoring 8 Outsourcing Completion 1.1 Perform Outsourcing Management 7.4 Personnel Transfer from Service Provider 8.4 Personnel Transferred Out 7.3 Select Candidate Service Providers 5.5 Problem and Incident Monitoring 5.5 Prepare Service Requirements 5.4 Agreement Management 2.1 Establish Outsourcing Project 4.2 Business Case 3.6 Create Agreements 7.3 Negotiations 6.4 Impact and Risk Analysis 3.1 Outsourcing Approach 3.5 Knowledge Transferred Out 7.4 Outsourcing Options 2.1 Negotiations Guidelines 6.5 Define SLAs and Measures 6.3 Demand Identification 2.7 Amend Agreements 7.3 Outsourcing Planning .2 Service Definition 5.10 Service Value Analysis 7.2 Evaluate Potential Service Providers 4.2 Confirm Existing Conditions 6.7 Service Change Management 7.2 Service Continuity 1.

2011 239 .3.3 Outsourcing Planning . governance of outsourcing activities can cause innumerable difficulties by not having sufficient resources to perform the necessary outsourcing management activities • Activities − Provide support for creating and maintaining the work products and tasks for establishing and implementing the plans for managing outsourcing project for each outsourcing action − Document and implement the work products and tasks required for establishing and implementing the plans for managing the outsourcing project for each outsourcing action − Support the implementation of establishing and implementing the plan for managing the outsourcing project for each outsourcing action April 3.1 Establish Outsourcing Project • Scope − Establish and implement plans for managing the outsourcing project for each outsourcing action − Failure to provide appropriate and sufficient.

3 Outsourcing Planning . clearly specifying the desired results and defining the industry standards to be followed − Defining detailed performance measures allow the client organisation to document the business requirements and rules. the price and how performance will be measured. service levels and metrics to clarify customer expectations regarding the nature of the relationship. the levels of service to be delivered.3. monitored and reported • Activities − Provide support for creating and maintaining the work products and tasks for defining and documenting the services and service conditions − Document and implement the work products and tasks required for defining and documenting the services and service conditions − Support the implementation of defining and documenting the services and service conditions April 3.2 Service Definition • Scope − Define and document the services and service conditions − Important that the client organisation set out in specific and measurable terms the services required. as well as the performance standards (service levels) that relate to each of the services to be provided − Clearly document the scope of the service to be performed in service specifications or service catalogs. how they are to be delivered and the duration that they are required for. 2011 240 .

3 Outsourcing Planning .3 Service Provider Selection Procedures • Scope − Establish and implement procedures to select service providers − Establish detailed procedures that require service providers to answer specific requests in a way that allows the client to compare responses and correlate data − The greater the importance of the potential outsourcing activity.3. 2011 241 . the more attention should be given to the service provider selection procedures • Activities − Provide support for creating and maintaining the procedures for selecting potential service providers − Document and implement the procedures required for selecting potential service providers − Support the implementation of selecting potential service providers April 3.

2011 242 . or that the reason for making the outsourcing decision will be forgotten • Activities − Provide support for creating and maintaining the work products and tasks for defining the evaluation criteria to be used in selecting service providers according to documented procedures − Document and implement the work products and tasks required for defining the evaluation criteria to be used in selecting service providers according to documented procedures − Support the implementation of defining the evaluation criteria to be used in selecting service providers April 3.4 Evaluation Criteria • Scope − Define the evaluation criteria to be used in selecting service providers according to documented procedures − Main principles for rating should be incorporated in the solicitation − Evaluation criteria should provide the basis for evaluating between potential service providers − Documenting the evaluation criteria can minimise the possibility that decisions will be second-guessed.3.3 Outsourcing Planning .

3.5 Prepare Service Requirements • Scope − Prepare requirements to communicate to prospective service providers according to documented procedures − Requirements outline the potential agreement with the service provider − Objective should be to attract the most responses from the most qualified providers − Provide as much information as possible to give service providers a good understanding of what is expected of them • Activities − Provide support for creating and maintaining the work products and tasks for preparing requirements to communicate to prospective service providers according to documented procedures − Document and implement the work products and tasks required for preparing requirements to communicate to prospective service providers according to documented procedures − Support the implementation of preparing requirements to communicate to prospective service providers April 3. 2011 243 .3 Outsourcing Planning .

1 Perform Outsourcing Management 7.2 Evaluate Potential Service Providers 4.2 Outsourcing Criteria 2.2 Service Definition 5.3 Resources Transfer from Service Provider 8.2 Confirm Existing Conditions 6.3 Resources Transferred Out 7.5 Prepare Service Requirements 5.1 Negotiations Guidelines 6.1 Establish Outsourcing Project 4.1 Define Current State 2.7 Service Change Management 7.1 Outsourcing Approach 3.5 Knowledge Transfer from Service Provider 1.3 Select Candidate Service Providers 5.5 Knowledge Transferred Out 7.4 Personnel Transfer from Service Provider 8.5 Outsourcing Initiation Decision 3.6 Service Delivery Change Management 5.3 Governance Model 3.Activities Outsourcing Capabilities and Skills Analysis Phase Initiation Phase Delivery Phase Completion Phase 1 Outsourcing Opportunity Analysis 2 Outsourcing Approach 3 Outsourcing Planning 4 Service Provider Evaluation 5 Outsourcing Agreements 6 Service Transfer 7 Sourced Services Management 7.2 Business Case 3.1 Service Transition 8.4 Service Provider Evaluation .7 Amend Agreements 7.3 Negotiations 6.5 Define SLAs and Measures 6.1 Completion Planning 1.6 Create Agreements 7.3 Demand Identification 2.8 Review Service Performance 7.4 Agreement Roles 6.4 Outsourcing Options 2.11 Continuation Decision April 3.10 Service Value Analysis 7.3 Service Provider Selection Procedures 5.4 Personnel Transferred Out 7.1 Communicate Requirements 4.4 Impact and Risk Analysis 3.4 Evaluation Criteria 5.2 Service Continuity 1. 2011 244 .4 Agreement Management 2.9 Stakeholder Feedback 7.2 Verify Design 8.2 Performance Monitoring 8 Outsourcing Completion 1.3 Financial Management 8.5 Problem and Incident Monitoring 5.

2011 245 .1 Communicate Requirements • Scope − Communicate requirements to prospective service providers according to documented selection procedures − Engaging potential service providers is critical to having a qualified pool of service providers to select from − Failure to follow standard procedures in soliciting prospective service providers can lead to inconsistencies in responses and serve as a potential source of risks or failures in future activities − Consistency in actions with prospective service providers may also be required for compliance with ethical and legal requirements on the selection process • Activities − Provide support for creating and maintaining the work products and tasks for communicating requirements to prospective service providers according to the documented selection procedures − Document and implement the work products and tasks required for communicating requirements to prospective service providers according to the documented selection procedures − Support the implementation of communicating requirements to prospective service providers April 3.4 Service Provider Evaluation .4.

4 Service Provider Evaluation . including the strategic alignment. resource capabilities and information security should be considered while choosing the service provider • Activities − Provide support for creating and maintaining the work products and tasks for evaluating potential service providers according to the documented selection procedures − Document and implement the work products and tasks required for evaluating potential service providers according to the documented selection procedures − Support the implementation of evaluating potential service providers April 3. references. experience. 2011 246 .4.2 Evaluate Potential Service Providers • Scope − Evaluate potential service providers using documented criteria and selection procedures − Many aspects. risk. reputation. financial goals.

4 Service Provider Evaluation . 2011 247 .3 Select Candidate Service Providers • Scope − Select candidate service providers according to the documented selection procedures − By following the documented selection procedures. gather the necessary objective data and guarantee that its overall selection process proceeds in a structured format − Creates a paper trail that can be useful if there is a need to explain how they arrived at a specific selection • Activities − Provide support for creating and maintaining the work products and tasks for selecting candidate service providers according to the documented selection procedures − Document and implement the work products and tasks required for selecting candidate service providers according to the documented selection procedures − Support the implementation of selecting candidate service providers April 3.4. the client should be able to use the appropriate evaluation criteria.

2 Performance Monitoring 8 Outsourcing Completion 1.8 Review Service Performance 7.3 Financial Management 8.4 Agreement Management 2.5 Prepare Service Requirements 5.5 Knowledge Transfer from Service Provider 1.9 Stakeholder Feedback 7.10 Service Value Analysis 7.2 Verify Design 8.3 Governance Model 3.1 Define Current State 2.3 Negotiations 6.4 Personnel Transfer from Service Provider 8.2 Outsourcing Criteria 2.5 Knowledge Transferred Out 7.1 Establish Outsourcing Project 4.2 Service Definition 5.6 Create Agreements 7.5 Outsourcing Initiation Decision 3.4 Personnel Transferred Out 7.3 Demand Identification 2.3 Service Provider Selection Procedures 5.3 Resources Transfer from Service Provider 8.1 Completion Planning 1.Activities Outsourcing Capabilities and Skills Analysis Phase Initiation Phase Delivery Phase Completion Phase 1 Outsourcing Opportunity Analysis 2 Outsourcing Approach 3 Outsourcing Planning 4 Service Provider Evaluation 5 Outsourcing Agreements 6 Service Transfer 7 Sourced Services Management 7.3 Select Candidate Service Providers 5.1 Communicate Requirements 4.1 Negotiations Guidelines 6.5 Problem and Incident Monitoring 5.5 Define SLAs and Measures 6.2 Business Case 3. 2011 248 .3 Resources Transferred Out 7.4 Outsourcing Options 2.2 Evaluate Potential Service Providers 4.1 Outsourcing Approach 3.6 Service Delivery Change Management 5.7 Service Change Management 7.4 Impact and Risk Analysis 3.1 Perform Outsourcing Management 7.7 Amend Agreements 7.1 Service Transition 8.2 Service Continuity 1.4 Agreement Roles 6.4 Evaluation Criteria 5.5 Outsourcing Agreements .11 Continuation Decision April 3.2 Confirm Existing Conditions 6.

5 Outsourcing Agreements .1 Negotiations Guidelines • Scope − Establish and implement guidelines for negotiations with service providers − Having these guidelines provides a structured approach to negotiation and can improve the internal stakeholder’s confidence in the outsourcing organisation − Guidelines also help protect the client organisation from legal or performance issues by verifying that the necessary aspects of negotiations are covered • Activities − Provide support for creating and maintaining the guidelines for negotiations with service providers − Document and implement the guidelines required for negotiations with service providers − Support the implementation of negotiations with service providers April 3.5. 2011 249 .

2011 250 .2 Confirm Existing Conditions • Scope − Establish and implement guidelines to confirm existing conditions − Helps mitigate risk by verifying that the service provider is making its commitments based on a clear understanding of the client organisation’s current service delivery environment • Activities − Provide support for creating and maintaining the guidelines for confirming existing conditions − Document and implement the guidelines for confirming existing conditions − Support the implementation of confirming existing conditions April 3.5 Outsourcing Agreements .5.

5 Outsourcing Agreements .5. 2011 251 . which aids in establishing positive relationships − Outsourcing organisations should be particularly wary of security and intellectual property concerns during negotiations • Activities − Provide support for creating and maintaining the work products and tasks for planning and tracking negotiations − Document and implement the work products and tasks required for planning and tracking negotiations − Support the implementation of planning and tracking negotiations April 3.3 Negotiations • Scope − Plan and track negotiations with service providers − Identify and monitor the key topics that require consensus and capture in the formal agreement between the parties − Planning for the negotiation and clearly identifying the key topics reflects a degree of preparation that enhances internal client trust in the capabilities of the organisation.

5 Outsourcing Agreements .5. 2011 252 .4 Agreement Roles • Scope − Define the roles and responsibilities of the client organisation and the service provider under the proposed agreement − Having clearly defined and understood roles and responsibilities helps to guard against mismatched expectations that may result in service delivery issues • Activities − Provide support for creating and maintaining the work products and tasks for defining the roles and responsibilities of the client organisation and the service provider under the proposed agreement − Document and implement the work products and tasks required for defining the roles and responsibilities of the client organisation and the service provider under the proposed agreement − Support the implementation of defining the roles and responsibilities of the client organisation and the service provider under the proposed agreement April 3.

5 Outsourcing Agreements .5 Define SLAs and Measures • Scope − Define the formal service level agreements and performance measures for the services and service conditions − Performance measures need to be established for each important component of the outsourced activity − Defining the performance measures allows the service provider to rationalise resources to best meet the client needs and allows the client to ensure that business requirements are being met − Greatest cause of disputes is the gap in understanding between the results expected by the client and the level of service the service provider intends to provide • Activities − Provide support for creating and maintaining the work products and tasks for defining the formal service level agreements and performance measures for the services and service conditions − Document and implement the work products and tasks required for defining the formal service level agreements and performance measures for the services and service conditions − Support the implementation of defining the formal service level agreements and performance measures for the services and service conditions April 3. 2011 253 .5.

5 Outsourcing Agreements - 5.6 Create Agreements

Scope
− Establish and implement procedures to create agreements − Legal agreements enable all the parties to have a clear understanding of what services will be delivered and at what level of quality − Given the long-term nature of most outsourcing engagements, implementing procedures for creating well-formed agreements and flexibility in the relationship between the client organisation and the service provider are critical to success

Activities
− Provide support for creating and maintaining the procedures for creating agreements − Document and implement the procedures required for creating agreements − Support the implementation of creating agreements

April 3, 2011

254

5 Outsourcing Agreements - 5.7 Amend Agreements

Scope
− Establish and implement procedures to amend agreements − Given the long-term nature of most outsourcing engagements, implementing procedures for amending agreements and flexibility in the relationship between the client and the service provider are critical to success

Activities
− Provide support for creating and maintaining the procedures for amending agreements − Document and implement the procedures required for amending agreements − Support the implementation of amending agreements
April 3, 2011 255

6 Service Transfer - Activities
Outsourcing Capabilities and Skills Analysis Phase Initiation Phase Delivery Phase Completion Phase 1 Outsourcing Opportunity Analysis 2 Outsourcing Approach 3 Outsourcing Planning 4 Service Provider Evaluation 5 Outsourcing Agreements 6 Service Transfer 7 Sourced Services Management 7.1 Perform Outsourcing Management 7.2 Performance Monitoring 8 Outsourcing Completion

1.1 Define Current State

2.1 Outsourcing Approach

3.1 Establish Outsourcing Project

4.1 Communicate Requirements 4.2 Evaluate Potential Service Providers 4.3 Select Candidate Service Providers

5.1 Negotiations Guidelines

6.1 Service Transition

8.1 Completion Planning

1.2 Outsourcing Criteria

2.2 Business Case

3.2 Service Definition

5.2 Confirm Existing Conditions

6.2 Verify Design

8.2 Service Continuity

1.3 Demand Identification

2.3 Governance Model

3.3 Service Provider Selection Procedures

5.3 Negotiations

6.3 Resources Transferred Out

7.3 Financial Management

8.3 Resources Transfer from Service Provider 8.4 Personnel Transfer from Service Provider 8.5 Knowledge Transfer from Service Provider

1.4 Outsourcing Options

2.4 Impact and Risk Analysis

3.4 Evaluation Criteria

5.4 Agreement Roles

6.4 Personnel Transferred Out

7.4 Agreement Management

2.5 Outsourcing Initiation Decision

3.5 Prepare Service Requirements

5.5 Define SLAs and Measures

6.5 Knowledge Transferred Out

7.5 Problem and Incident Monitoring

5.6 Create Agreements

7.6 Service Delivery Change Management

5.7 Amend Agreements

7.7 Service Change Management

7.8 Review Service Performance

7.9 Stakeholder Feedback

7.10 Service Value Analysis

7.11 Continuation Decision

April 3, 2011

256

6 Service Transfer - 6.1 Service Transition

Scope
− Plan and track the transition of the outsourced service − Planning is critical for establishing expectations for both the client and service provider − Forms the basis for tracking transition and deployment tasks and for reviewing and verifying the service design

Activities
− Provide support for creating and maintaining the work products and tasks for planning and tracking the transition of the outsourced service − Document and implement the work products and tasks required for planning and tracking the transition of the outsourced service − Support the implementation of planning and tracking the transition of the outsourced service
April 3, 2011 257

6 Service Transfer - 6.2 Verify Design

Scope
− Establish and implement procedures to review and verify the outsourced service design − Removing defects early prevents problems during service deployment and enables the service provider to satisfy the client’s requirements and meet the service level commitments − Establish an in-depth and rigorous review of the service design

Activities
− Provide support for creating and maintaining the procedures for reviewing and verifying the outsourced service design − Document and implement the procedures required for reviewing and verifying the outsourced service design − Support the implementation of reviewing and verifying the outsourced service design
April 3, 2011 258

6 Service Transfer - 6.3 Resources Transferred Out

Scope
− Establish and implement procedures to verify and account for resources transferred to service providers − Track and manage resource transfers in order to facilitate a smooth transfer of responsibilities prior to service delivery − Enables the client organisation to verify the transfer of the required resources and to facilitate handling any disputes regarding disposition of resources that might arise at completion

Activities
− Provide support for creating and maintaining the procedures for verifying and accounting for resources transferred to service providers − Document and implement the procedures required for verifying and accounting for resources transferred to service providers − Support the implementation of verifying and accounting for resources transferred to service providers
April 3, 2011 259

6 Service Transfer .4 Personnel Transferred Out • Scope − Establish and implement procedures to manage the transfer of personnel to service providers • Activities − Provide support for creating and maintaining the procedures for managing the transfer of personnel to service providers − Document and implement the procedures required for managing the transfer of personnel to service providers − Support the implementation of managing the transfer of personnel to service providers April 3. 2011 260 .6.

2011 261 . supported and verified − Verification that knowledge transfer has successfully occurred can eliminate sources of doubt or confusion as the service moves into delivery − Comprehensive and detailed documentation of transferred knowledge also makes it easier for a client to bring the service delivery back in-house or transition to another service provider • Activities − Provide support for creating and maintaining the work products and tasks for ensuring that transfer of knowledge to service providers is planned.5 Knowledge Transferred Out • Scope − Ensure that transfer of knowledge to service providers is planned.6.6 Service Transfer . supported and verified − Document and implement the work products and tasks required for ensuring that transfer of knowledge to service providers is planned. supported and verified − Support the implementation of ensuring that transfer of knowledge to service providers is planned. supported and verified April 3.

4 Agreement Management 2.2 Service Definition 5.3 Service Provider Selection Procedures 5.3 Resources Transfer from Service Provider 8.2 Outsourcing Criteria 2.1 Establish Outsourcing Project 4.9 Stakeholder Feedback 7.3 Select Candidate Service Providers 5.1 Service Transition 8.5 Prepare Service Requirements 5.1 Communicate Requirements 4.3 Resources Transferred Out 7.3 Negotiations 6.5 Define SLAs and Measures 6.2 Verify Design 8.2 Performance Monitoring 8 Outsourcing Completion 1.5 Knowledge Transferred Out 7.2 Evaluate Potential Service Providers 4.2 Business Case 3.7 Service Change Management 7.1 Negotiations Guidelines 6.Activities Outsourcing Capabilities and Skills Analysis Phase Initiation Phase Delivery Phase Completion Phase 1 Outsourcing Opportunity Analysis 2 Outsourcing Approach 3 Outsourcing Planning 4 Service Provider Evaluation 5 Outsourcing Agreements 6 Service Transfer 7 Sourced Services Management 7.4 Personnel Transfer from Service Provider 8.7 Amend Agreements 7.1 Completion Planning 1.4 Outsourcing Options 2.6 Create Agreements 7.4 Personnel Transferred Out 7.6 Service Delivery Change Management 5.5 Knowledge Transfer from Service Provider 1.1 Define Current State 2.1 Perform Outsourcing Management 7.11 Continuation Decision April 3.4 Impact and Risk Analysis 3.10 Service Value Analysis 7.4 Evaluation Criteria 5.4 Agreement Roles 6.5 Outsourcing Initiation Decision 3.7 Sourced Services Management .2 Service Continuity 1.8 Review Service Performance 7.3 Demand Identification 2.5 Problem and Incident Monitoring 5.1 Outsourcing Approach 3.3 Governance Model 3. 2011 262 .3 Financial Management 8.2 Confirm Existing Conditions 6.

1 Perform Outsourcing Management • Scope − Plan and track outsourcing management for the outsourced services − Well-defined plan for governance and service management is necessary to ensure the client organisation’s success in managing and monitoring service providers − Planning and tracking are key aspects of service management for the outsourced services that occur throughout delivery • Activities − Provide support for creating and maintaining the work products and tasks for planning and tracking outsourcing management for the outsourced services − Document and implement the work products and tasks required for planning and tracking outsourcing management for the outsourced services − Support the implementation of planning and tracking outsourcing management plans for the outsourced services April 3.7 Sourced Services Management . 2011 263 .7.

7 Sourced Services Management . 2011 264 .7.2 Performance Monitoring • Scope − Establish and implement procedures to monitor and verify that service commitments are being met − Verify that the agreed upon service commitments are being met and take appropriate action which may include exercising remedies in the agreement when commitments are not met or are in jeopardy of being missed − Goal of the procedures is to optimise the cost of monitoring and conformance by generating maximum compliance with minimum cost • Activities − Provide support for creating and maintaining the procedures for monitoring and verifying service commitments − Document and implement the procedures required for monitoring and verifying service commitments − Support the implementation of monitoring and verification of service commitments April 3.

evaluate financial impact of changes to agreements.7. develop and distribute financial reports and resolve financial issues • Activities − Provide support for creating and maintaining the procedures for financial management of the outsourced services − Document and implement the procedures required for the financial management of the outsourced services − Support the implementation of financial management of the outsourced service April 3.7 Sourced Services Management . 2011 265 . clearly understand costs. manage the costs of performing outsourcing management.3 Financial Management • Scope − Establish and implement procedures for financial management of the outsourced services − Procedures allow the client organisation to develop and maintain cost controls.

2011 266 .4 Agreement Management • Scope − Establish and implement procedures for management of agreements governing the outsourced services − Manage organisational understanding of key elements of agreements.7.7 Sourced Services Management . such as definitions. service performance levels. problem escalation definitions and service conditions • Activities − Provide support for creating and maintaining the procedures for management of agreements governing the outsourced services − Document and implement the procedures required for management of agreements governing the outsourced services − Support the implementation of management of agreements governing the outsourced services April 3. service activity and task descriptions. as appropriate.

7 Sourced Services Management .7. 2011 267 .5 Problem and Incident Monitoring • Scope − Participate in problem and incident monitoring and resolution − Monitor the service provider’s adherence to problem severity management as well as participating with the service provider in understanding and resolving problems − Establish the need for and implement a reporting process for issues raised by internal stakeholders. such as end users • Activities − Provide support for creating and maintaining the work products and tasks for participating in problem and incident monitoring and resolution − Document and implement the work products and tasks required for participating in problem and incident monitoring and resolution − Support the implementation of participation in problem and incident monitoring and resolution April 3.

7.7 Sourced Services Management . 2011 268 . including ensuring that retained services remain synchronised with outsourced services as service changes are implemented − Change management is focused on ensuring that all changes are assessed. approved. implemented and reviewed in a controlled manner • Activities − Provide support for creating and maintaining the work products and tasks for participating in change management activities − Document and implement the work products and tasks required for participating in change management activities − Support the implementation of participation in change management activities April 3.6 Service Delivery Change Management • Scope − Participate in change management activities − Manage modifications of the services in a controlled manner in order to minimise the impact on their delivery.

business mergers. acquisitions and reorganisations and changing customer requirements.7 Service Change Management • Scope − Establish and implement procedures to manage modifications to services − Major business changes.7.7 Sourced Services Management . can require service levels to be adjusted. 2011 269 . that changes are planned and that back out plans are in place • Activities − Provide support for creating and maintaining the procedures for managing modifications to services − Document and implement the procedures required for managing modifications to services − Support the implementation of managing modifications to services April 3. due to growth. or even temporarily suspended − Effective service management disciplines help ensure that the effect of changes to one area of the infrastructure or business process are identified prior to the change. redefined.

7.8 Review Service Performance • Scope − Establish and implement procedures for reconciling service performance against expectations − Manage the performance of service providers in order to help ensure that the client organisation receives the agreed-to service − Effective management includes identifying deviations in the performance of service providers and taking the appropriate corrective action to assure expected service delivery • Activities − Provide support for creating and maintaining the procedures for reconciling service performance against expectations − Document and implement the procedures required for reconciling service performance against expectations − Support the implementation of reconciling service performance against expectations April 3.7 Sourced Services Management . 2011 270 .

7. 2011 271 .9 Stakeholder Feedback • Scope − Establish and implement guidelines to collect and organise stakeholder inputs and feedback − Collect. organise and use stakeholder information in order to improve service delivery. outsourcing management and relationships with stakeholders • Activities − Provide support for creating and maintaining the guidelines for collecting and organizing stakeholder inputs and feedback − Document and implement the guidelines required for collecting and organizing stakeholder inputs and feedback − Support the implementation of collecting and organizing stakeholder inputs and feedback April 3.7 Sourced Services Management .

7.10 Service Value Analysis • Scope − Establish and implement procedures for performing value analysis of the outsourced service − Expected value propositions for the outsourcing action and their expected outcomes must be well defined and documented − State value propositions as outcomes or goals that are quantifiable and measurable • Activities − Provide support for creating and maintaining the procedures for performing value analysis of the outsourced service − Document and implement the procedures required for performing value analysis of the outsourced service − Support the implementation of performing value analysis of the outsourced service April 3.7 Sourced Services Management . 2011 272 .

identifying necessary amendments to agreements. 2011 273 .7.11 Continuation Decision • Scope − Establish and implement procedures for making decisions about continuing the outsourced service − A procedure to reconcile provider performance against expectations as a trend over time will lead to fact-based decisions for fine tuning the services delivered and eventually for future outsourcing decisions between outsourcing options − Outsourcing decision may include continued delivery of the outsourced service with no changes.7 Sourced Services Management . or terminating the agreements that are currently in place • Activities − Provide support for creating and maintaining the procedures for making decisions about continuing the outsourced service − Document and implement the procedures required for making decisions about continuing the outsourced service − Support the implementation of making decisions about continuing the outsourced service April 3. renewing agreements for an extended duration.

3 Resources Transfer from Service Provider 8.9 Stakeholder Feedback 7.1 Completion Planning 1.7 Amend Agreements 7.2 Verify Design 8.4 Evaluation Criteria 5.8 Review Service Performance 7.3 Negotiations 6.3 Service Provider Selection Procedures 5.6 Service Delivery Change Management 5.2 Service Definition 5.2 Confirm Existing Conditions 6.2 Business Case 3.1 Negotiations Guidelines 6.Activities Outsourcing Capabilities and Skills Analysis Phase Initiation Phase Delivery Phase Completion Phase 1 Outsourcing Opportunity Analysis 2 Outsourcing Approach 3 Outsourcing Planning 4 Service Provider Evaluation 5 Outsourcing Agreements 6 Service Transfer 7 Sourced Services Management 7.2 Service Continuity 1.1 Define Current State 2.5 Knowledge Transferred Out 7.1 Perform Outsourcing Management 7.1 Service Transition 8.4 Impact and Risk Analysis 3.8 Outsourcing Completion .4 Personnel Transfer from Service Provider 8.1 Communicate Requirements 4.2 Outsourcing Criteria 2.1 Outsourcing Approach 3.6 Create Agreements 7.3 Governance Model 3.5 Outsourcing Initiation Decision 3.5 Define SLAs and Measures 6.4 Agreement Roles 6. 2011 274 .4 Personnel Transferred Out 7.5 Prepare Service Requirements 5.3 Demand Identification 2.4 Outsourcing Options 2.3 Resources Transferred Out 7.4 Agreement Management 2.3 Financial Management 8.7 Service Change Management 7.5 Knowledge Transfer from Service Provider 1.2 Performance Monitoring 8 Outsourcing Completion 1.3 Select Candidate Service Providers 5.10 Service Value Analysis 7.5 Problem and Incident Monitoring 5.1 Establish Outsourcing Project 4.2 Evaluate Potential Service Providers 4.11 Continuation Decision April 3.

the completion plans may need to be closely aligned with the transition plans developed by the client and the incumbent service provider • Activities − Provide support for creating and maintaining the work products and tasks for planning and tracking completion of the outsourced service − Document and implement the work products and tasks required for planning and tracking completion of the outsourced service − Support the implementation of planning and tracking the completion of the outsourced service April 3.8 Outsourcing Completion . client organisations should pay attention to the health of the relationship so as to make it possible for both parties to separate amicably − For services transitioning to another service provider.8. 2011 275 .1 Completion Planning • Scope − Plan and track completion of the outsourced service − In addition to making sure that financial and other substantive commitments are identified and met.

8 Outsourcing Completion . 2011 276 .2 Service Continuity • Scope − Establish and implement procedures to ensure the continuity of service during completion − Facilitating and monitoring the transfer of service helps ensure that the client’s business is not disrupted • Activities − Provide support for creating and maintaining the procedures for ensuring the continuity of service during completion − Document and implement the procedures required for ensuring the continuity of service during completion − Support the implementation of ensuring the continuity of service during completion April 3.8.

facilities.3 Resources Transfer from Service Provider • Scope − Ensure that resource transfer during completion is managed according to documented procedures − Resources to be transferred can include service-related documents.8 Outsourcing Completion . personnel and other assets • Activities − Provide support for creating and maintaining the work products and tasks for ensuring that resource transfer during completion is managed according to documented procedures − Document and implement the work products and tasks required for ensuring that resource transfer during completion is managed according to documented procedures − Support the implementation of resource transfer during completion April 3. hardware. software. 2011 277 .8. licenses.

8.4 Personnel Transfer from Service Provider • Scope − Ensure that the transfer of personnel during completion is managed according to documented procedures • Activities − Provide support for creating and maintaining the work products and tasks ensuring that the transfer of personnel during completion is managed according to documented procedures − Document and implement the work products and tasks required for ensuring that the transfer of personnel during completion is managed according to documented procedures − Support the implementation of transfer of personnel during completion April 3.8 Outsourcing Completion . 2011 278 .

8.8 Outsourcing Completion .5 Knowledge Transfer from Service Provider • Scope − Ensure that knowledge transfer during completion is managed according to documented procedures − Knowledge the service provider gained during the engagement may represent the client organisation’s intellectual property • Activities − Provide support for creating and maintaining the work products and tasks for ensuring that knowledge transfer during completion is managed according to documented procedures − Document and implement the work products and tasks required for ensuring that knowledge transfer during completion is managed according to documented procedures − Support the implementation of knowledge transfer during completion April 3. 2011 279 .

2 Organisational Risk Management 9.1 Outsourcing Sponsorship 10.6 Business Process Integration 11.3 Organisational Outsourcing Competency 15.6 Business Value and Impact 13.7 Adapt to Business Change 11.5 Align Strategy and Architectures 11.5 Share Knowledge 17.Activities Outsourcing Capabilities and Skills Ongoing Phase Governance Focused Competency and Change Focused Environment Focused 9 Outsourcing Strategy Management 10 Governance Management 11 Relationship Management 12 Value Management 13 Organisational Change Management 14 People Management 15 Knowledge Management 16 Technology Management 17 Threat Management 9.2 Capability Baselines 13.5 Innovation 13.5 Cultural Fit 12.3 Potential Outsourcing Areas 10.2 Service Provider Relationships 12.5 Compliance 10.3 Internal Relationships 12.4 Outsourcing Objectives 10.7 Innovative Relationships 12.5 Organisational Outsourcing Strategy 10.6 Organisational Change 17.1 Service Provider Interactions 12.6 Collaborative Relationships 12.4 Define Roles 15.1 Organisational Outsourcing Performance 13.2 Personnel Competencies 15.4 Lessons Learned 17. 2011 280 .4 Security and Privacy 9.1 Assign Outsourcing Responsibilities 15.5 Communicate Organisational Changes 15.2 Stakeholder Involvement 14.4 Improve Outsourcing Processes 13.2 Service Provider Management 11.4 Issue Management 12.4 Defined Outsourcing Processes 11.6 Business Continuity 10.7 Outsourcing Alignment April 3.1 Outsourcing Policy 11.2 Outsourcing Constraints 10.1 Outsourcing Risk Management 9.2 License Management 17.1 Asset Management 17.9 Outsourcing Strategy Management .3 Technology Integration 17.3 Market Information 16.2 Knowledge System 16.3 Internal Stakeholder Management 11.3 Intellectual Property 9.4 Human Resource Changes 14.3 Define Future State 14.3 Benchmark Outsourcing Processes 13.1 Provide Required Information 16.1 Prepare for Organisational Change 14.

as outsourcing is often en a strategic initiative that crosses functional groups within the client organisation − Sponsorship should be established at the appropriate level to have the necessary scope and strategic perspective for the outsourcing activities • Activities − Provide support for creating and maintaining the work products and tasks for establishing management sponsorship for outsourcing − Document and implement the work products and tasks required for establishing management sponsorship for outsourcing − Support the implementation of establishing management sponsorship for outsourcing April 3. 2011 281 .9 Outsourcing Strategy Management .9.1 Outsourcing Sponsorship • Scope − Establish management sponsorship for outsourcing − Ensuring that the correct level of senior management supports and is committed to the outsourcing initiatives is critical for client organisations.

2 Outsourcing Constraints • Scope − Identify the constraints that impact the client organisation’s potential uses of outsourcing − Understand the strategic.9. 2011 282 .9 Outsourcing Strategy Management . political and managerial implications of outsourcing • Activities − Provide support for creating and maintaining the work products and tasks for determining the constraints that impact the client organisation’s potential uses of outsourcing − Document and implement the work products and tasks required for determining the constraints that impact the client organisation’s potential uses of outsourcing − Support the implementation of determining the constraints that impact the client organisation’s potential uses of outsourcing April 3.

skills or competencies are better handled by others.9 Outsourcing Strategy Management . 2011 283 .9.3 Potential Outsourcing Areas • Scope − Decide to what extent outsourcing may be relevant to the client organisation − Examine the organisation’s business strategies and plans and determine which business processes. leaving the client to concentrate on its own core competencies • Activities − Provide support for creating and maintaining the work products and tasks for determining to what extent outsourcing may be relevant to the client organisation − Document and implement the work products and tasks required for determining to what extent outsourcing may be relevant to the client organisation − Support the implementation of determining to what extent outsourcing may be relevant to the client organisation April 3.

align and document outsourcing objectives − Outsourcing objectives set will reflect the underlying motives for the organisation considering outsourcing as an appropriate business strategy − Clearly defined and measurable outsourcing objectives establish the outsourcing principles and enable management to set and attain performance expectations − Outsourcing objectives should be clearly established and supported. aligned with IT and business objectives and support achieving these business objectives • Activities − Provide support for creating and maintaining the work products and tasks for developing. aligning and documenting outsourcing objectives − Document and implement the work products and tasks required for developing.9. aligning and documenting outsourcing objectives April 3. aligning and documenting outsourcing objectives − Support the implementation of developing. 2011 284 .9 Outsourcing Strategy Management .4 Outsourcing Objectives • Scope − Define.

growth and continuity strategies − Outsourcing objectives set will reflect the underlying motives for the organisation considering outsourcing as an appropriate business strategy • Activities − provide support for creating and maintaining the work products and tasks for developing and managing the outsourcing strategy of the client organisation − Document and implement the work products and tasks required for developing and managing the outsourcing strategy of the client organisation − Support the implementation of developing and managing the outsourcing strategy of the client organisation April 3.9 Outsourcing Strategy Management .9. communicate and maintain the outsourcing strategy of the client organisation − Outsourcing strategy should clearly address the client organisation’s outsourcing objectives and be in alignment with the organisation’s business.5 Organisational Outsourcing Strategy • Scope − Define. 2011 285 .

5 Align Strategy and Architectures 11.6 Business Process Integration 11.5 Organisational Outsourcing Strategy 10.2 Capability Baselines 13.3 Technology Integration 17.6 Business Continuity 10.2 Stakeholder Involvement 14.2 Service Provider Management 11.3 Potential Outsourcing Areas 10.4 Improve Outsourcing Processes 13.1 Asset Management 17.3 Market Information 16.3 Internal Relationships 12.2 Knowledge System 16.4 Human Resource Changes 14.2 Personnel Competencies 15. 2011 286 .5 Communicate Organisational Changes 15.4 Lessons Learned 17.3 Intellectual Property 9.4 Issue Management 12.10 Governance Management .5 Compliance 10.1 Organisational Outsourcing Performance 13.1 Service Provider Interactions 12.1 Outsourcing Sponsorship 10.1 Outsourcing Risk Management 9.7 Innovative Relationships 12.6 Collaborative Relationships 12.6 Organisational Change 17.2 Outsourcing Constraints 10.5 Share Knowledge 17.1 Outsourcing Policy 11.6 Business Value and Impact 13.4 Outsourcing Objectives 10.5 Cultural Fit 12.1 Prepare for Organisational Change 14.2 License Management 17.4 Security and Privacy 9.1 Assign Outsourcing Responsibilities 15.3 Organisational Outsourcing Competency 15.3 Define Future State 14.3 Benchmark Outsourcing Processes 13.4 Define Roles 15.3 Internal Stakeholder Management 11.7 Outsourcing Alignment April 3.5 Innovation 13.1 Provide Required Information 16.2 Organisational Risk Management 9.7 Adapt to Business Change 11.Activities Outsourcing Capabilities and Skills Ongoing Phase Governance Focused Competency and Change Focused Environment Focused 9 Outsourcing Strategy Management 10 Governance Management 11 Relationship Management 12 Value Management 13 Organisational Change Management 14 People Management 15 Knowledge Management 16 Technology Management 17 Threat Management 9.4 Defined Outsourcing Processes 11.2 Service Provider Relationships 12.

processes and mechanisms needed to manage.1 Outsourcing Policy • Scope − Establish and implement the organisational outsourcing policy − Provides the organisational structures.10. assess and improve the client organisation’s outsourcing initiatives and support the outsourcing strategy − Governance policy should enable effective execution of the key client outsourcing activities − Demonstrates leadership and organisational commitment and is a key factor for outsourcing success • Activities − Provide support for creating and maintaining the organisational outsourcing policy − Document and implement the organisational outsourcing policy − Support the implementation of the organisation’s outsourcing policy April 3.10 Governance Management . 2011 287 .

with customers and their service providers working together to resolve issues • Activities − Provide support for creating and maintaining the procedures for managing service providers − Document and implement the procedures required for managing service providers − Support the implementation of managing service providers April 3.10 Governance Management . 2011 288 .2 Service Provider Management • Scope − Establish and implement procedures to manage service providers − Having effective relationships with service providers helps the outsourcing organisation expand its capabilities and respond to internal clients’ changing requirements and demands − Includes tracking the performance of service provider − Should be proactive and collaborative.10.

3 Internal Stakeholder Management • Scope − Establish and implement procedures to manage internal stakeholders − Having procedures to manage the relationships with internal stakeholders helps the outsourcing organisation ensure that outsourced services meet internal needs and respond to internal clients’ changing demands • Activities − Provide support for creating and maintaining the procedures for managing internal stakeholders − Document and implement the procedures required for managing internal stakeholders − Support the implementation of managing internal stakeholders April 3.10.10 Governance Management . 2011 289 .

2011 290 .10. supporting and monitoring outsourcing performance.4 Defined Outsourcing Processes • Scope − Establish and maintain documented outsourcing processes for use across the organisation − Processes help to ensure mechanisms are in place to manage relationships with service providers while meeting the client’s organisational outsourcing objectives − Without appropriate outsourcing processes in place. acquiring. the problems may fail to be identified or managed adequately − Well-developed and implemented outsourcing processes enables the client organisation to integrate and institutionalise best practices of planning. to ensure that the client’s outsourcing activities support its business objectives • Activities − Provide support for creating and maintaining the work products and tasks for establishing and maintaining documented outsourcing processes for use across the organisation − Document and implement the work products and tasks required for establishing and maintaining documented outsourcing processes for use across the organisation − Support the implementation of establishing and maintaining documented outsourcing processes for use across the organisation April 3. organizing. delivering.10 Governance Management . implementing.

10. 2011 291 .5 Align Strategy and Architectures • Scope − Align strategies and architectures to support outsourcing across the organisation − Engaging in outsourcing activities without ensuring that they are consistent with the client organisation’s strategy and architectures can lead to significant risk. potential impacts on service delivery and performance and introduce unnecessary issues in service transfer − Continual monitoring of technological advances and regulatory trends will ensure that the organisation’s technology architecture remains capable of supporting business process and outsourcing needs • Activities − Provide support for creating and maintaining the work products and tasks for aligning strategies and architectures to support outsourcing across the organisation − Document and implement the work products and tasks required for aligning strategies and architectures to support outsourcing across the organisation − Support the implementation of aligning strategies and architectures to support outsourcing across the organisation April 3.10 Governance Management .

10.6 Business Process Integration • Scope − Establish and implement procedures to manage the integration of business processes with those performed by service providers − IT-enabled outsourcing requires that the client organisation’s business processes be integrated with those of the service provider − Processes must be coordinated between all the involved parties to achieve the agreed-to performance and service levels • Activities − Provide support for creating and maintaining the procedures for managing the integration of business processes with those performed by service providers − Document and implement the procedures required for managing the integration of business processes with those performed by service providers − Support the implementation of managing the integration of business processes with those performed by service providers April 3.10 Governance Management . 2011 292 .

10.10 Governance Management . 2011 293 . organisations should review their agreements and rectify any issues that have emerged due to change in business needs or constraints • Activities − Provide support for creating and maintaining the guidelines for reviewing and adapting to changes − Document and implement the guidelines required for reviewing and adapting to changes − Support the implementation of reviewing and adapting to changes April 3.7 Adapt to Business Change • Scope − Establish and implement guidelines for reviewing and adapting to changes − Processes should be constantly reviewed and refined to ensure that all activities add value appropriately − In order to achieve the maximum benefits of outsourcing.

6 Collaborative Relationships 12.1 Organisational Outsourcing Performance 13.Activities Outsourcing Capabilities and Skills Ongoing Phase Governance Focused Competency and Change Focused Environment Focused 9 Outsourcing Strategy Management 10 Governance Management 11 Relationship Management 12 Value Management 13 Organisational Change Management 14 People Management 15 Knowledge Management 16 Technology Management 17 Threat Management 9.4 Issue Management 12.1 Asset Management 17.3 Internal Stakeholder Management 11.7 Outsourcing Alignment April 3.5 Organisational Outsourcing Strategy 10.2 Capability Baselines 13.3 Benchmark Outsourcing Processes 13.3 Intellectual Property 9.11 Relationship Management .4 Human Resource Changes 14.2 Service Provider Relationships 12.5 Cultural Fit 12.4 Defined Outsourcing Processes 11.5 Communicate Organisational Changes 15.5 Share Knowledge 17.6 Organisational Change 17.2 Service Provider Management 11.2 Personnel Competencies 15.2 License Management 17.1 Outsourcing Policy 11.6 Business Process Integration 11.3 Internal Relationships 12.4 Lessons Learned 17.6 Business Value and Impact 13.3 Define Future State 14.4 Security and Privacy 9.2 Outsourcing Constraints 10. 2011 294 .3 Technology Integration 17.4 Outsourcing Objectives 10.4 Define Roles 15.2 Stakeholder Involvement 14.1 Outsourcing Sponsorship 10.1 Prepare for Organisational Change 14.6 Business Continuity 10.1 Provide Required Information 16.5 Innovation 13.3 Organisational Outsourcing Competency 15.1 Service Provider Interactions 12.2 Organisational Risk Management 9.3 Market Information 16.7 Adapt to Business Change 11.4 Improve Outsourcing Processes 13.5 Compliance 10.1 Outsourcing Risk Management 9.7 Innovative Relationships 12.1 Assign Outsourcing Responsibilities 15.3 Potential Outsourcing Areas 10.5 Align Strategy and Architectures 11.2 Knowledge System 16.

1 Service Provider Interactions • Scope − Establish and implement procedures to manage interactions with service providers − Providing a common point of contact such as a service provider relationship team helps ensure the continuity of communication − Team should be maintained throughout the outsourcing life-cycle • Activities − Provide support for creating and maintaining the procedures for managing interactions with service providers − Document and implement the procedures required for managing interactions with service providers − Support the implementation of managing interactions with service providers April 3.11.11 Relationship Management . 2011 295 .

11 Relationship Management .11. 2011 296 .2 Service Provider Relationships • Scope − Establish and implement procedures to manage service provider relationships − Having effective procedures to manage service provider relationships with existing service providers helps the client organisation to communicate their changing needs and to proactively determine how to address them while also addressing the organisation’s objectives − Interface between the client organisation and its service providers is crucial to successful outcomes • Activities − Provide support for creating and maintaining the procedures for managing service provider relationships − Document and implement the procedures required for managing service provider relationships − Support the implementation of managing service provider relationships April 3.

11 Relationship Management .11. 2011 297 . analysis and tracking of internal client interactions enables the creation of an extensive record that can provide insight into internal client requirements and needs − Having effective relationships with internal clients helps the outsourcing organisation to understand the internal clients’ changing needs • Activities − Provide support for creating and maintaining the procedures for managing internal client relationships − Document and implement the procedures required for managing internal client relationships − Support the implementation of managing internal client relationships April 3.3 Internal Relationships • Scope − Establish and implement procedures to manage internal client relationships − Effective collection.

escalation. internal stakeholders and the service provider − Effective issue management requires that negotiation and resolution techniques between the client and service provider organisations be standardised as a common repeatable issue management process • Activities − Provide support for creating and maintaining the procedures for managing issues and their resolution − Document and implement the procedures required for managing issues and their resolution − Support the implementation of managing issues and their resolution April 3. negotiation and dispute and conflict resolution of issues amongst the client organisation.11. documentation.4 Issue Management • Scope − Establish and implement procedures to manage issues and their resolution − Issue management covers identification. 2011 298 .11 Relationship Management .

5 Cultural Fit • Scope − Identify cultural attributes that impact the outsourcing relationship and the outsourced services and implement actions to achieve cultural fit − Addressing cultural differences also improves stakeholder satisfaction and enables all involved personnel to work together effectively • Activities − Provide support for creating and maintaining the work products and tasks for identifying cultural attributes that impact the outsourcing relationship and the outsourced services and implementing actions to achieve cultural fit − Document and implement the work products and tasks required for identifying cultural attributes that impact the outsourcing relationship and the outsourced services and implementing actions to achieve cultural fit − Support the implementation of identifying cultural attributes that impact the outsourcing relationship and the outsourced services and implementing actions to achieve cultural fit April 3. 2011 299 .11 Relationship Management .11.

2011 300 .6 Collaborative Relationships • Scope − Establish and implement guidelines for developing collaborative relationships with service providers − A key to successfully managing outsourcing during long-term relationships is building trust and collaboration. which goes beyond an agreement’s legal requirements to explore new ways that clients and service providers can engage in win-win activities • Activities − Provide support for creating and maintaining the guidelines for developing collaborative relationships with service providers − Document and implement the guidelines required for developing collaborative relationships with service providers − Support the implementation of developing collaborative relationships with service providers April 3.11.11 Relationship Management .

11 Relationship Management .7 Innovative Relationships • Scope − Develop relationships that focus on value creation through innovation − Value creation includes identifying opportunities of greater business value for the client. including innovations such as new business arrangements or enhanced technologies and other opportunities for creating value or making improvements • Activities − Provide support for creating and maintaining the work products and tasks for developing relationships that focus on value creation through innovation − Document and implement the work products and tasks required for developing relationships that focus on value creation through innovation − Support the implementation of developing relationships that focus on value creation through innovation April 3.11. 2011 301 .

3 Define Future State 14. 2011 302 .5 Communicate Organisational Changes 15.2 Stakeholder Involvement 14.1 Outsourcing Sponsorship 10.12 Value Management .2 Service Provider Management 11.5 Share Knowledge 17.3 Organisational Outsourcing Competency 15.7 Adapt to Business Change 11.4 Defined Outsourcing Processes 11.3 Technology Integration 17.4 Lessons Learned 17.1 Assign Outsourcing Responsibilities 15.5 Compliance 10.2 Knowledge System 16.3 Potential Outsourcing Areas 10.6 Business Continuity 10.2 Outsourcing Constraints 10.7 Outsourcing Alignment April 3.3 Intellectual Property 9.3 Internal Stakeholder Management 11.3 Benchmark Outsourcing Processes 13.1 Outsourcing Risk Management 9.1 Asset Management 17.1 Service Provider Interactions 12.2 Organisational Risk Management 9.6 Business Process Integration 11.5 Innovation 13.1 Provide Required Information 16.4 Human Resource Changes 14.1 Outsourcing Policy 11.4 Define Roles 15.2 Capability Baselines 13.3 Internal Relationships 12.5 Organisational Outsourcing Strategy 10.6 Collaborative Relationships 12.5 Cultural Fit 12.2 Personnel Competencies 15.1 Organisational Outsourcing Performance 13.3 Market Information 16.Activities Outsourcing Capabilities and Skills Ongoing Phase Governance Focused Competency and Change Focused Environment Focused 9 Outsourcing Strategy Management 10 Governance Management 11 Relationship Management 12 Value Management 13 Organisational Change Management 14 People Management 15 Knowledge Management 16 Technology Management 17 Threat Management 9.2 Service Provider Relationships 12.4 Outsourcing Objectives 10.7 Innovative Relationships 12.5 Align Strategy and Architectures 11.2 License Management 17.4 Issue Management 12.4 Improve Outsourcing Processes 13.1 Prepare for Organisational Change 14.6 Organisational Change 17.4 Security and Privacy 9.6 Business Value and Impact 13.

12 Value Management . operational and financial performance • Activities − Provide support for creating and maintaining the procedures for reviewing organisational outsourcing performance across the organisation − Document and implement the procedures required for reviewing organisational outsourcing performance across the organisation − Support the implementation of reviewing organisational outsourcing performance across the organisation April 3.1 Organisational Outsourcing Performance • Scope − Establish and implement procedures to review organisational outsourcing performance − Organise key performance measurements across the client organisation in order to manage and improve organisational outsourcing performance − Client organisations need to manage their outsourcing activities by identifying and utilising measures or indicators that best represent the factors that lead to improved customer. 2011 303 .12.

12 Value Management .2 Capability Baselines • Scope − Define capability baselines for the client organisation by organizing outsourcing performance data − Provides a basis for the outsourcing organisation to organise whether performance deviations are within expected ranges or if they represent exceptions that need to be investigated and addressed • Activities − Provide support for creating and maintaining the work products and tasks for defining capability baselines for the client organisation − Document and implement the work products and tasks required for defining capability baselines for the client organisation − Support the implementation of defining capability baselines for the client organisation April 3. 2011 304 .12.

12 Value Management . 2011 305 .12.3 Benchmark Outsourcing Processes • Scope − Benchmark the client organisation’s outsourcing-related processes by comparing performance with other client organisations involved in similar relationships − Benchmarking allows the client organisation to objectively organise its outsourcing processes − Measure the performance of the organisation’s processes and compares them to the measured performance of industry best practices − Compare the organisation’s processes to industry best practices in order to identify the practices that lead to superior performance − Compare the organisation’s processes against standards or models • Activities − Provide support for creating and maintaining the work products and tasks for benchmarking the client organisation’s outsourcing-related processes − Document and implement the work products and tasks required for benchmarking the client organisation’s outsourcing-related processes − Support the implementation of benchmarking the client organisation’s outsourcing-related processes April 3.

4 Improve Outsourcing Processes • Scope − Improve outsourcing-related processes based on reviews of organisational outsourcing performance − Use the knowledge gained from performance reviews in order to improve the organisation’s outsourcing performance and increase the stakeholders’ value • Activities − Provide support for creating and maintaining the work products and tasks for making improvements based on reviews of organisational outsourcing performance − Document and implement the work products and tasks required for making improvements based on reviews of organisational outsourcing performance − Support the implementation of making improvements based on reviews of organisational outsourcing performance April 3.12 Value Management .12. 2011 306 .

12. markets and service providers. as well as reviews of ongoing outsourcing performance − Major changes that affect the organisation need to be actively managed because of the learning curve and potential impacts associated with the change • Activities − Provide support for creating and maintaining the work products and tasks for establishing and implementing programs to encourage and deploy innovations through outsourcing relationships and outsourced services across the organisation − Document and implement the work products and tasks required for establishing programs to encourage and deploy innovations through outsourcing relationships and outsourced services across the organisation April 3.12 Value Management . 2011 307 .5 Innovation • Scope − Establish and implement programs to encourage and deploy innovations through outsourcing relationships and outsourced services across the organisation − Innovations may spring from many sources: people.

12 Value Management .12.6 Business Value and Impact • Scope − Organise the business value and impact of organisational outsourcing performance − Evaluate the client organisation’s outsourcing capability and its contribution to business value and impacts • Activities − Provide support for creating and maintaining the work products and tasks for organizing the business value and impact of organisational outsourcing performance − Document and implement the work products and tasks required for organizing the business value and impact of organisational outsourcing performance − Support the implementation of organizing the business value and impact of organisational outsourcing performance April 3. 2011 308 .

2011 309 .12 Value Management .12.7 Outsourcing Alignment • Scope − Align the client organisation’s outsourcing activities and results with its business objectives and strategy − Enhance the alignment of outsourcing results across the organisation and with organisational performance and business objectives − Analyses allow management to align outsourcing performance across the entire organisation and to use their outsourcing activities strategically to achieve organisational business objectives • Activities − Provide support for creating and maintaining the work products and tasks for ensuring alignment of outsourcing activities and results with business objectives and strategy − Document and implement the work products and tasks required for ensuring alignment of outsourcing activities and results with business objectives and strategy − Support the implementation of ensuring alignment of outsourcing activities and results with business objectives and strategy April 3.

6 Business Continuity 10.5 Cultural Fit 12.3 Intellectual Property 9.13 Organisational Change Management .5 Compliance 10.4 Human Resource Changes 14.2 Service Provider Relationships 12.2 Knowledge System 16.7 Innovative Relationships 12.6 Organisational Change 17.1 Outsourcing Sponsorship 10.3 Technology Integration 17.4 Security and Privacy 9.3 Potential Outsourcing Areas 10.3 Internal Stakeholder Management 11.7 Adapt to Business Change 11.2 Organisational Risk Management 9.4 Outsourcing Objectives 10.4 Lessons Learned 17.2 Service Provider Management 11.3 Market Information 16.6 Collaborative Relationships 12.1 Service Provider Interactions 12.3 Define Future State 14.1 Provide Required Information 16.4 Issue Management 12.5 Share Knowledge 17.1 Assign Outsourcing Responsibilities 15.5 Innovation 13.4 Define Roles 15.Activities Outsourcing Capabilities and Skills Ongoing Phase Governance Focused Competency and Change Focused Environment Focused 9 Outsourcing Strategy Management 10 Governance Management 11 Relationship Management 12 Value Management 13 Organisational Change Management 14 People Management 15 Knowledge Management 16 Technology Management 17 Threat Management 9.1 Asset Management 17.2 Capability Baselines 13.4 Defined Outsourcing Processes 11.2 Outsourcing Constraints 10.1 Outsourcing Policy 11.5 Organisational Outsourcing Strategy 10.3 Organisational Outsourcing Competency 15.1 Prepare for Organisational Change 14.2 Stakeholder Involvement 14.2 Personnel Competencies 15.4 Improve Outsourcing Processes 13.3 Benchmark Outsourcing Processes 13.7 Outsourcing Alignment April 3.5 Communicate Organisational Changes 15.6 Business Value and Impact 13.2 License Management 17.1 Outsourcing Risk Management 9.1 Organisational Outsourcing Performance 13.6 Business Process Integration 11.5 Align Strategy and Architectures 11. 2011 310 .3 Internal Relationships 12.

13 Organisational Change Management .1 Prepare for Organisational Change • Scope − Prepare for changes across the organisation needed to support the client organisation’s outsourcing actions − Assess the client organisation’s readiness for change and determine the gaps that need to be closed to ensure a successful transition to a new service delivery model − Outsourcing can have significant change implications for an organisation • Activities − Provide support for creating and maintaining the work products and tasks for preparing for organisational change needed to support the client organisation’s outsourcing actions − Document and implement the work products and tasks required for preparing for organisational change needed to support the client organisation’s outsourcing actions − Support the implementation of preparing for organisational change needed to support the client organisation’s outsourcing activities April 3.13. 2011 311 .

13 Organisational Change Management . 2011 312 .13.2 Stakeholder Involvement • Scope − Identify and involve relevant stakeholders in outsourcing activities • Activities − Provide support for creating and maintaining the work products and tasks for identifying and involving relevant stakeholders in outsourcing activities − Document and implement the work products and tasks required for identifying and involving relevant stakeholders in outsourcing activities April 3.

13.13 Organisational Change Management .3 Define Future State • Scope − Define the future organisational structure and process model − Organisational structure and its process architecture must be defined in order to establish the business model that will be implemented • Activities − Provide support for creating and maintaining the work products and tasks for defining the future organisational structure and process model − Document and implement the work products and tasks required for defining the future organisational structure and process model − Support the implementation of defining the future organisational structure and process model April 3. 2011 313 .

4 Human Resource Changes • Scope − Establish and implement human resource strategies and plans to support the client organisation’s outsourcing actions − Address the workforce transformations that may occur as a result of outsourcing activities − Management should develop effective action plans to deal with personnel issues during its outsourcing activities • Activities − Provide support for creating and maintaining the work products and tasks for establishing and implementing human resource strategies and plans to support the client organisation’s outsourcing actions − Document and implement the work products and tasks required for establishing and implementing human resource strategies and plans to support the client organisation’s outsourcing actions − Support the implementation of establishing and implementing human resource strategies and plans to support the client organisation’s outsourcing actions April 3.13.13 Organisational Change Management . 2011 314 .

13 Organisational Change Management .5 Communicate Organisational Changes • Scope − Establish and implement communications strategies and plans to support the client organisation’s outsourcing actions − Define and explain the compelling need for a potential outsourcing action − Business justification of a potential outsourcing action should be communicated clearly and early in the effort • Activities − Provide support for creating and maintaining the work products and tasks for establishing and implementing communications strategies and plans to support the client organisation’s outsourcing actions − Document and implement the work products and tasks required for establishing and implementing communications strategies and plans to support the client organisation’s outsourcing actions − Support the implementation of establishing and implementing communications strategies and plans to support the client organisation’s outsourcing actions April 3.13. 2011 315 .

users and support groups − Change management captures the impact of outsourcing on various human or “soft” dimensions of the organisation throughout a outsourcing engagement and then enables addressing these issues • Activities − Provide support for creating and maintaining the work products and tasks for managing organisational change to support outsourcing actions − Document and implement the work products and tasks required for managing organisational change to support outsourcing actions − Support the implementation of managing organisational change to support outsourcing actions April 3.6 Organisational Change • Scope − Manage organisational change to support outsourcing actions − New service delivery model that outsourcing brings to an organisation impacts all stakeholders .13 Organisational Change Management . 2011 316 .13.employees.

7 Innovative Relationships 12.3 Internal Relationships 12.5 Innovation 13.3 Market Information 16. 2011 317 .2 Outsourcing Constraints 10.3 Potential Outsourcing Areas 10.1 Service Provider Interactions 12.4 Defined Outsourcing Processes 11.2 Service Provider Relationships 12.1 Outsourcing Sponsorship 10.5 Organisational Outsourcing Strategy 10.4 Issue Management 12.4 Outsourcing Objectives 10.6 Business Continuity 10.4 Security and Privacy 9.4 Lessons Learned 17.1 Prepare for Organisational Change 14.2 Personnel Competencies 15.7 Adapt to Business Change 11.2 Capability Baselines 13.3 Technology Integration 17.14 People Management .2 Organisational Risk Management 9.6 Business Process Integration 11.3 Intellectual Property 9.3 Benchmark Outsourcing Processes 13.6 Collaborative Relationships 12.Activities Outsourcing Capabilities and Skills Ongoing Phase Governance Focused Competency and Change Focused Environment Focused 9 Outsourcing Strategy Management 10 Governance Management 11 Relationship Management 12 Value Management 13 Organisational Change Management 14 People Management 15 Knowledge Management 16 Technology Management 17 Threat Management 9.1 Outsourcing Policy 11.7 Outsourcing Alignment April 3.5 Communicate Organisational Changes 15.3 Organisational Outsourcing Competency 15.6 Organisational Change 17.1 Asset Management 17.5 Compliance 10.4 Define Roles 15.1 Outsourcing Risk Management 9.5 Cultural Fit 12.4 Human Resource Changes 14.5 Align Strategy and Architectures 11.1 Assign Outsourcing Responsibilities 15.4 Improve Outsourcing Processes 13.3 Define Future State 14.2 Service Provider Management 11.2 License Management 17.3 Internal Stakeholder Management 11.6 Business Value and Impact 13.1 Organisational Outsourcing Performance 13.2 Knowledge System 16.2 Stakeholder Involvement 14.5 Share Knowledge 17.1 Provide Required Information 16.

14 People Management . skills and process abilities that specific personnel in the client organisation possess • Activities − Provide support for creating and maintaining the work products and tasks for assigning roles and responsibilities to outsourcing personnel based on appropriate personnel competencies − Document and implement the work products and tasks required for assigning roles and responsibilities to outsourcing personnel based on appropriate personnel competencies − Support the implementation of assigning roles and responsibilities to outsourcing personnel based on appropriate personnel competencies April 3. 2011 318 .1 Assign Outsourcing Responsibilities • Scope − Assign roles and responsibilities to outsourcing personnel based on appropriate personnel competencies − Having qualified personnel helps to ensure that work can be performed − Personnel competency is the combination of knowledge.14.

2 Personnel Competencies • Scope − Develop personnel competencies needed by individuals with outsourcing responsibilities to perform their assignments − Address personnel competency gaps in order to enable personnel to effectively perform their roles and responsibilities − Effective training helps to ensure that personnel can perform their assigned roles and responsibilities − Training requirements must be identified to satisfy the needs of both the outsourcing engagement and the client’s outsourcing objectives • Activities − Provide support for creating and maintaining the work products and tasks for developing personnel competencies needed by individuals with outsourcing responsibilities to perform their assignments − Document and implement the work products and tasks required for developing personnel competencies needed by individuals with outsourcing responsibilities to perform their assignments − Support the implementation of developing personnel competencies needed by individuals with outsourcing responsibilities to perform their assignments April 3. 2011 319 .14.14 People Management .

2011 320 . skill and competency needs of those involved in outsourcing and governance activities exposes the organisation to risks that could be prevented by having a knowledgeable and competent outsourcing workforce • Activities − Provide support for creating and maintaining the work products and tasks for defining and managing a workforce competency focused on outsourcing across the organisation − Document and implement the work products and tasks required for defining and managing a workforce competency focused on outsourcing across the organisation − Support the implementation of defining and managing a workforce competency focused on outsourcing across the organisation April 3.14. planning. managing and evaluating outsourcing activities − Failure to address the knowledge.14 People Management .3 Organisational Outsourcing Competency • Scope − Define and manage a workforce competency focused on outsourcing across the organisation − Organization must develop a workforce competency in organizing.

responsibilities and authority of outsourcing personnel. in order to enable them to effectively perform their assigned work − Aligning outsourcing personnel’s roles. responsibilities and authority with client organisational objectives should result in improved performance • Activities − Provide support for creating and maintaining the work products and tasks for defining and communicating the roles and responsibilities of outsourcing personnel across the organisation − Document and implement the work products and tasks required for defining and communicating the roles and responsibilities of outsourcing personnel across the organisation − Support the implementation of defining and communicating the roles and responsibilities of outsourcing personnel across the organisation April 3. as part of the overall outsourcing process.4 Define Roles • Scope − Define and communicate the roles and responsibilities of outsourcing personnel across the organisation − Clearly define the roles.14. 2011 321 .14 People Management .

5 Cultural Fit 12.3 Organisational Outsourcing Competency 15.5 Align Strategy and Architectures 11.6 Collaborative Relationships 12.7 Innovative Relationships 12.5 Communicate Organisational Changes 15.1 Asset Management 17.15 Knowledge Management .4 Outsourcing Objectives 10.1 Prepare for Organisational Change 14.2 Organisational Risk Management 9.1 Provide Required Information 16.2 License Management 17.2 Capability Baselines 13.6 Business Value and Impact 13.4 Issue Management 12.3 Internal Stakeholder Management 11.3 Define Future State 14.6 Business Process Integration 11.Activities Outsourcing Capabilities and Skills Ongoing Phase Governance Focused Competency and Change Focused Environment Focused 9 Outsourcing Strategy Management 10 Governance Management 11 Relationship Management 12 Value Management 13 Organisational Change Management 14 People Management 15 Knowledge Management 16 Technology Management 17 Threat Management 9.3 Benchmark Outsourcing Processes 13.4 Defined Outsourcing Processes 11.5 Innovation 13.1 Outsourcing Risk Management 9.3 Internal Relationships 12.2 Personnel Competencies 15.1 Organisational Outsourcing Performance 13.7 Adapt to Business Change 11.1 Assign Outsourcing Responsibilities 15.3 Potential Outsourcing Areas 10.4 Improve Outsourcing Processes 13. 2011 322 .3 Intellectual Property 9.2 Service Provider Relationships 12.3 Technology Integration 17.2 Stakeholder Involvement 14.4 Human Resource Changes 14.1 Service Provider Interactions 12.6 Business Continuity 10.4 Security and Privacy 9.2 Service Provider Management 11.4 Define Roles 15.5 Organisational Outsourcing Strategy 10.3 Market Information 16.2 Outsourcing Constraints 10.5 Compliance 10.4 Lessons Learned 17.1 Outsourcing Policy 11.6 Organisational Change 17.7 Outsourcing Alignment April 3.2 Knowledge System 16.1 Outsourcing Sponsorship 10.5 Share Knowledge 17.

control and provide the information that personnel need to perform their outsourcing responsibilities − Provide access to the information that is essential for personnel to do their work in order to enable personnel to work efficiently − Easy access to required information enables personnel to be more efficient and effective in the performance of their work • Activities − Provide support for creating and maintaining the work products and tasks for identifying.1 Provide Required Information • Scope − Identify. controlling and providing the information that personnel need to perform their outsourcing responsibilities − Support the implementation of identifying.15 Knowledge Management .15. 2011 323 . controlling and providing the information that personnel need to perform their outsourcing responsibilities April 3. controlling and providing the information that personnel need to perform their outsourcing responsibilities − Document and implement the work products and tasks required for identifying.

but is rather a coordinated method for managing and communicating needed information • Activities − Provide support for creating and maintaining the work products and tasks for utilising a knowledge system to identify.2 Knowledge System • Scope − Utilise a knowledge system to identify. control and disseminate outsourcing information − A knowledge system is not necessarily a central electronic repository of information. control and disseminate outsourcing information − Document and implement the work products and tasks required for utilising a knowledge system to identify. control and disseminate outsourcing information April 3.15. 2011 324 .15 Knowledge Management . control and disseminate outsourcing information − Support the implementation of utilising a knowledge system to identify.

15 Knowledge Management .3 Market Information • Scope − Organise and use information about the service provider market − Information includes the service provider’s industry market share.15. external delivery partners and their existing clients • Activities − Provide support for creating and maintaining the work products and tasks for organizing and using information about the service provider market − Document and implement the work products and tasks required for organizing and using information about the service provider market − Support the implementation of organizing and using information about the service provider market April 3. 2011 325 .

to address problems that have occurred and to improve overall value obtained through current and future initiatives • Activities − Provide support for creating and maintaining the work products and tasks for organizing and using knowledge gained from outsourcing activities − Document and implement the work products and tasks required for organizing and using knowledge gained from outsourcing activities − Support the implementation of organizing and using knowledge gained from outsourcing activities April 3.15.15 Knowledge Management .4 Lessons Learned • Scope − Organise and use knowledge gained from outsourcing activities − Effectively organizing and using the knowledge gained from prior and current initiatives enables clients to reuse its best practices. 2011 326 .

5 Share Knowledge • Scope − Establish and implement procedures to share knowledge among stakeholders − Knowledge sharing procedures also clarify the rules by which knowledge can be shared between internal stakeholders. client outsourcing personnel. service providers and their suppliers and partners • Activities − Provide support for creating and maintaining the procedures for sharing knowledge among stakeholders − Document and implement the procedures required for sharing knowledge among stakeholders − Support the implementation of sharing knowledge among stakeholders April 3.15.15 Knowledge Management . 2011 327 .

1 Service Provider Interactions 12.3 Technology Integration 17.4 Outsourcing Objectives 10.1 Assign Outsourcing Responsibilities 15.2 Service Provider Management 11.4 Human Resource Changes 14.1 Outsourcing Policy 11.2 Personnel Competencies 15.3 Organisational Outsourcing Competency 15.2 Outsourcing Constraints 10.3 Potential Outsourcing Areas 10.4 Improve Outsourcing Processes 13.6 Organisational Change 17.5 Communicate Organisational Changes 15.2 Capability Baselines 13.6 Business Continuity 10.1 Asset Management 17.2 Knowledge System 16.4 Issue Management 12.7 Innovative Relationships 12.5 Align Strategy and Architectures 11.2 License Management 17.6 Business Process Integration 11.5 Innovation 13.3 Intellectual Property 9.4 Lessons Learned 17.4 Defined Outsourcing Processes 11.1 Prepare for Organisational Change 14.2 Service Provider Relationships 12.3 Define Future State 14.5 Cultural Fit 12.6 Business Value and Impact 13. 2011 328 .7 Outsourcing Alignment April 3.2 Organisational Risk Management 9.1 Organisational Outsourcing Performance 13.7 Adapt to Business Change 11.5 Compliance 10.16 Technology Management .1 Outsourcing Risk Management 9.3 Internal Stakeholder Management 11.4 Define Roles 15.1 Provide Required Information 16.3 Benchmark Outsourcing Processes 13.3 Internal Relationships 12.4 Security and Privacy 9.2 Stakeholder Involvement 14.1 Outsourcing Sponsorship 10.3 Market Information 16.5 Share Knowledge 17.5 Organisational Outsourcing Strategy 10.Activities Outsourcing Capabilities and Skills Ongoing Phase Governance Focused Competency and Change Focused Environment Focused 9 Outsourcing Strategy Management 10 Governance Management 11 Relationship Management 12 Value Management 13 Organisational Change Management 14 People Management 15 Knowledge Management 16 Technology Management 17 Threat Management 9.6 Collaborative Relationships 12.

1 Asset Management • Scope − Ensure that technology assets are managed according to documented procedures • Activities − Provide support for creating and maintaining the work products and tasks for ensuring that technology assets are managed according to documented procedures − Document and implement the work products and tasks required for ensuring that technology assets are managed according to documented procedures − Support the implementation of ensuring that technology assets are managed according to documented procedures April 3. 2011 329 .16.16 Technology Management .

16.2 License Management • Scope − Ensure that technology licenses are managed according to documented procedures • Activities − Provide support for creating and maintaining the work products and tasks for ensuring that technology licenses are managed according to documented procedures − Document and implement the work products and tasks required for ensuring that technology licenses are managed according to documented procedures − Support the implementation of ensuring that technology licenses are managed according to documented procedures April 3.16 Technology Management . 2011 330 .

2011 331 .16 Technology Management .3 Technology Integration • Scope − Establish and implement procedures to manage the client organisation’s integration of its technology infrastructure with service providers − Integration can range in scope from integrating with a single outsourcing initiative and one service provider to more complex cases of integrating with several initiatives and multiple service providers and their appropriate partners − For the integration of technology infrastructure may be identified during the process of gathering requirements of a outsourcing opportunity • Activities − Provide support for creating and maintaining the procedures for managing the client organisation’s integration of its technology infrastructure with the service providers − Document and implement the procedures required for managing the client organisation’s integration of its technology infrastructure with the service providers − Support the implementation of managing the client organisation’s integration of its technology infrastructure with the service providers April 3.16.

3 Technology Integration 17.3 Define Future State 14.5 Cultural Fit 12.1 Outsourcing Sponsorship 10.1 Assign Outsourcing Responsibilities 15.4 Issue Management 12.7 Innovative Relationships 12.1 Outsourcing Risk Management 9.5 Share Knowledge 17.4 Outsourcing Objectives 10.4 Lessons Learned 17. 2011 332 .2 Outsourcing Constraints 10.7 Outsourcing Alignment April 3.5 Align Strategy and Architectures 11.1 Prepare for Organisational Change 14.2 License Management 17.3 Benchmark Outsourcing Processes 13.3 Internal Relationships 12.6 Business Continuity 10.2 Service Provider Management 11.4 Improve Outsourcing Processes 13.2 Personnel Competencies 15.6 Business Value and Impact 13.3 Potential Outsourcing Areas 10.17 Threat Management .1 Organisational Outsourcing Performance 13.1 Outsourcing Policy 11.5 Compliance 10.1 Provide Required Information 16.1 Service Provider Interactions 12.4 Defined Outsourcing Processes 11.2 Capability Baselines 13.3 Intellectual Property 9.7 Adapt to Business Change 11.3 Market Information 16.2 Knowledge System 16.1 Asset Management 17.4 Human Resource Changes 14.3 Organisational Outsourcing Competency 15.6 Business Process Integration 11.2 Stakeholder Involvement 14.2 Organisational Risk Management 9.4 Security and Privacy 9.2 Service Provider Relationships 12.5 Innovation 13.4 Define Roles 15.5 Organisational Outsourcing Strategy 10.6 Collaborative Relationships 12.6 Organisational Change 17.5 Communicate Organisational Changes 15.Activities Outsourcing Capabilities and Skills Ongoing Phase Governance Focused Competency and Change Focused Environment Focused 9 Outsourcing Strategy Management 10 Governance Management 11 Relationship Management 12 Value Management 13 Organisational Change Management 14 People Management 15 Knowledge Management 16 Technology Management 17 Threat Management 9.3 Internal Stakeholder Management 11.

17. assessing and managing outsourcing risks − Support the implementation of identifying. where requirements are being organised and service is being designed to meet those requirements − Problems encountered here can impact the success of service delivery and associated business benefits throughout the life of the initiative. • Activities − Provide support for creating and maintaining the procedures for identifying.17 Threat Management . assess and manage outsourcing risks − Effective risk management is particularly critical in the early stages of a outsourcing initiative. assessing and managing outsourcing risks April 3. 2011 333 .1 Outsourcing Risk Management • Scope − Establish and implement procedures to identify. assessing and managing outsourcing risks − Document and implement the procedures required for identifying.

2 Organisational Risk Management • Scope − Establish and implement procedures to manage risks across multiple outsourced services and service providers − Effective identification and assessment of risks enables the client organisation to take mitigating actions to lower the impact should a risk event occur − Effective risk management improves the stakeholders’ confidence in the client organisation’s ability to maintain needed services and service levels • Activities − Provide support for creating and maintaining the procedures for managing risks across multiple outsourced services and service providers − Document and implement the procedures required for managing risks across multiple outsourced services and service providers − Support the implementation of managing risks across multiple outsourced services and service providers April 3.17 Threat Management . 2011 334 .17.

17 Threat Management .17. 2011 335 . may cause financial loss and make the client organisation vulnerable to disputes or legal action − Organization should have a formalised policy on the protection of intellectual property that is used to provide direction for creating the procedures on protection of intellectual property • Activities − Provide support for creating and maintaining the procedures for protecting the intellectual property of stakeholders − Document and implement the procedures required for protecting the intellectual property of stakeholders − Support the implementation of protecting the intellectual property of stakeholders April 3.3 Intellectual Property • Scope − Establish and implement procedures to protect the intellectual property of stakeholders − Inappropriate use or disclosure of intellectual property can damage the relationship with stakeholders.

2011 336 . can impact the client organisation’s ability to provide business continuity.17.4 Security and Privacy • Scope − Establish and implement procedures to meet security and privacy requirements − Breakdowns. thereby damaging the relationship and making the involved parties vulnerable to legal action − Effective security is essential for meeting privacy requirements and protecting intellectual property − Security requirements may come from the client organisation or statutes and regulations governing the service being delivered • Activities − Provide support for creating and maintaining the procedures for meeting security and privacy requirements − Document and implement the procedures required for meeting security and privacy requirements − Support the implementation of meeting security and privacy requirements April 3. such as security breaches.17 Threat Management .

17 Threat Management . risk and compliance − Procedures ensure that they comply with standards. 2011 337 .17. statutes and regulations that impact their outsourcing capability and their outsourced services in order to meet statutory.5 Compliance • Scope − Establish and implement procedures to comply with applicable standards and statutory and regulatory requirements − Client organisation must implement procedures to address governance. regulatory and stakeholder requirements and to avoid stakeholder dissatisfaction and legal or audit issues • Activities − Provide support for creating and maintaining the procedures for complying with applicable standards and statutory and regulatory requirements − Document and implement the procedures required for complying with applicable standards and statutory and regulatory requirements − Support the implementation of complying with applicable standards and statutory and regulatory requirements April 3.

crisis management and the safety of personnel and promotes confidence in the client organisation’s and service providers’ ability to react effectively to adverse situations • Activities − Provide support for creating and maintaining the procedures for ensuring business continuity of outsourced services − Document and implement the procedures required for ensuring business continuity of outsourced services − Support the implementation of ensuring business continuity of outsourced services April 3. 2011 338 .17 Threat Management .6 Business Continuity • Scope − Establish and implement procedures to ensure business continuity of outsourced services − Prepare for possible disasters in order to minimise their impact on the client organisation’s ability to continue business activities − Preparation covers service delivery.17. security. the protection of intellectual property.

Summary • Outsourcing experiences and implementations has been poor A structured approach to implementing outsourcing arrangements by both providers and end-users can enable effective outsourcing A common language and a common understanding of roles and responsibilities will reduce problems and assist in issue resolution • • April 3. 2011 339 .

2011 340 .com April 3.More Information Alan McSweeney alan@alanmcsweeney.

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