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

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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

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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
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Types of Outsourcing Arrangement

Efficiency/Utility (Make it Cheaper) arrangement outsourcing focuses primarily on cost control and, over time, cost reduction, with the goal of maintaining consistency in the delivery of services Business Enhancement (Make it Better) arrangement is about business productivity. The organisation’s performance, as compared with their competitors, will improve, 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, changing the very basis on which an organisation competes

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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, 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, security, availability, capacity, service continuity and other requirements as it relates to the specific service

Because this is a core competency, the service provider is able to optimise the best balance of facilities, processes, resources, tools, and metrics, 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, contractoroperated) or COCO (contractor-owned, contractor-operated) model and is largely based on client preference

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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?

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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
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17% 16% 12% 12% 8% 6% 6% 4% 3% 3%
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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
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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, problems and concerns arise across outsourcing contracts Learn from the issues to avoid them

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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
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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

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Transaction Costs

• •

Along with production costs, 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, 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, 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
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Outsourcing Planning

Structured approach can form the basis for an outsourcing implementation plan for both service providers and for companies performing outsourcing

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Sample Service Transfer Plan – Outsourcing Service Provider
• •

Plan subset Based on activities
− 1 Service Transfer
• 1.1 Resources Transferred In • 1.2 Personnel Transferred In • 1.3 Service Continuity

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Sample Service Transfer Plan – Outsourcing Organisation
• •

Plan subset Based on activities
− 1 Outsourcing Opportunity Analysis
• 1.1 Define Current State • 1.2 Outsourcing Criteria • 1.3 Demand Identification • 1.4 Outsourcing Options

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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

• •

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Risks in Outsourcing – Lots of Them
Outsourcing Risks

Strategic

Reputation

Compliance

Operational

Termination

Financial

Country

Contract

Access
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Concentration/Systemic
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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

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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

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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

• •

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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

• •

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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

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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

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Country Risks
• •

Outsourcer cannot enforce contract Incorrect selection of applicable legal jurisdiction

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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

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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

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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.

Maintaining Stakeholder Expectations
− Common source of failure in outsourcing engagements is a difference in expectations between the client, 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, 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
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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, 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, thereby escalating issues as appropriate to ensure that they are addressed in a timely basis
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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, 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, Motivation, And Retention
− IT-enabled outsourcing often involves challenges during transition, 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, Accessibility, 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
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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, responsibilities and expectations of all parties Need to establish and maintain contingency plans, 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

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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, analyse and manage the ongoing relationships with suppliers
− Concerned with managing the IT function

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Sourcing and Supplier Management

Supplier Management competence and associated processes operationalises the strategic decisions taken within the Sourcing competence

Sourcing

Supplier Management

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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, 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

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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
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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

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Sourcing Competence Scope

Strategic sourcing decisions on what processes are in- or outsourced to what extent The decision on what sourcing model is applied
− Internal/external − Onshore/nearshore/offshore − Single vs. multiple vendor relationship

• • •

Calculation of business cases for outsourcing projects The process of selecting the optimal partner(s) Preparation, negotiation, 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)
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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
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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
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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
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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
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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

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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
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• • •

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
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Contracting

Service Design and Deployment

Service Delivery

Service Transfer
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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

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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

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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 4.1 Plan Service Delivery 4.2 Train Clients 4.3 Deliver Service 4.4 Verify Service Commitments 4.5 Correct Problems 4.6 Prevent Known Problems 4.7 Service Modifications 4.8 Financial Management 6 People Management 7 Performance Management 8 Relationship Management 9 Technology Management 10 Threat Management 10.1 Risk Management 10.2 Engagement Risk 10.3 Risk Across Engagements 10.4 Security 10.5 Intellectual Property 10.6 Statutory and Regulatory Compliance 10.7 Disaster Recovery 1.1 Resources Transferred In 1.2 Personnel Transferred In 1.3 Service Continuity 1.4 Resources Transferred Out 1.5 Personnel Transferred Out 1.6 Knowledge Transferred Out 2.1 Negotiations 3.1 Communicate Requirements 3.2 Design and Deploy Service 3.3 Plan Design and Deployment 3.4 Service Specification 3.5 Service Design 3.6 Design Feedback 3.7 Verify Design 3.8 Deploy Service 5.1 Share Knowledge 5.2 Provide Required Information# 5.3 Knowledge System 5.4 Process Assets 5.5 Engagement Knowledge 5.6 Reuse 5.7 Version and Change Control 5.8 Resource Consumption 6.1 Encourage Innovation 6.2 Participation in Decisions 6.3 Work Environment 6.4 Assign Responsibilitie s 6.5 Define Roles 6.6 Workforce Competencies 6.7 Plan and Deliver Training 6.8 Plan and Deliver Training 6.9 Performance Feedback 6.10 Performance Feedback 6.11 Rewards 7.1 Engagement Objectives 7.2 Verify Processes 7.3 Adequate Resources 7.4 Organisational Objectives 7.5 Review Organisational Performance 7.6 Make Improvements 7.7 Achieve Organisational Objectives 7.8 Capability Baselines 8.1 Client Interactions 8.2 Select Suppliers and Partners 8.3 Manage Suppliers and Partners 8.4 Cultural Fit 8.5 Stakeholder Information 8.6 Client Relationships 8.7 Supplier and Partner Relationships 8.8 Value Creation 9.1 Acquire Technology 9.2 Technology Licenses 9.3 Control Technology 9.4 Technology Integration 9.5 Optimise Technology 9.6 Proactively Introduce Technology

2.2 Pricing 2.3 Confirm Existing Conditions 2.4 Market Information 2.5 Plan Negotiations 2.6 Gather Requirements 2.7 Review Requirements 2.8 Respond to Requirements 2.9 Contract Roles 2.10 Create Contracts 2.11 Amend Contracts

7.9 Benchmark 7.10 Prevent Potential Problems 7.11 Deploy Innovations

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Key Capabilities and Constituent Practices for EndUser Organisations - 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 3.1 Establish Outsourcing Project 3.2 Service Definition 3.3 Service Provider Selection Procedures 3.4 Evaluation Criteria 3.5 Prepare Service Requirements 5 Outsourcing Agreements 6 Service Transfer 7 Sourced Services Management 8 Outsourcing Completion 8.1 Completion Planning 8.2 Service Continuity 8.3 Resources Transfer from Service Provider 8.4 Personnel Transfer from Service Provider 8.5 Knowledge Transfer from Service Provider 7.1 Perform Outsourcing Management 7.2 Performance Monitoring 7.3 Financial Management 7.4 Agreement Management 7.5 Problem and Incident Monitoring 7.6 Service Delivery Change Management 7.7 Service Change Management 7.8 Review Service Performance 7.9 Stakeholder Feedback 7.10 Service Value Analysis 7.11 Continuation Decision

1.1 Define Current State 1.2 Outsourcing Criteria 1.3 Demand Identification 1.4 Outsourcing Options

2.1 Outsourcing Approach

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

5.1 Negotiations Guidelines 5.2 Confirm Existing Conditions

6.1 Service Transition

2.2 Business Case

6.2 Verify Design

2.3 Governance Model 2.4 Impact and Risk Analysis 2.5 Outsourcing Initiation Decision

5.3 Negotiations

6.3 Resources Transferred Out 6.4 Personnel Transferred Out 6.5 Knowledge Transferred Out

5.4 Agreement Roles 5.5 Define SLAs and Measures 5.6 Create Agreements 5.7 Amend Agreements

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Key Capabilities and Constituent Practices for EndUser Organisations - 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 Risk Management 17.2 Organisational Risk Management 17.3 Intellectual Property

9.1 Outsourcing Sponsorship

10.1 Outsourcing Policy 10.2 Service Provider Management 10.3 Internal Stakeholder Management 10.4 Defined Outsourcing Processes 10.5 Align Strategy and Architectures 10.6 Business Process Integration

11.1 Service Provider Interactions 11.2 Service Provider Relationships

12.1 Organisational Outsourcing Performance 12.2 Capability Baselines

13.1 Prepare for Organisational Change 13.2 Stakeholder Involvement

14.1 Assign Outsourcing Responsibilities

15.1 Provide Required Information

16.1 Asset Management

9.2 Outsourcing Constraints

14.2 Personnel Competencies 14.3 Organisational Outsourcing Competency 14.4 Define Roles

15.2 Knowledge System

16.2 License Management

9.3 Potential Outsourcing Areas

11.3 Internal Relationships

12.3 Benchmark Outsourcing Processes 12.4 Improve Outsourcing Processes

13.3 Define Future State

15.3 Market Information

16.3 Technology Integration

9.4 Outsourcing Objectives 9.5 Organisational Outsourcing Strategy

11.4 Issue Management

13.4 Human Resource Changes 13.5 Communicate Organisational Changes 13.6 Organisational Change

15.4 Lessons Learned

17.4 Security and Privacy

11.5 Cultural Fit

12.5 Innovation

15.5 Share Knowledge

17.5 Compliance

11.6 Collaborative Relationships

12.6 Business Value and Impact 12.7 Outsourcing Alignment

17.6 Business Continuity

10.7 Adapt to Business Change

11.7 Innovative Relationships

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Analysis Phase

End-User Organisation
Concerned with analysing operations and functions to identify those services, 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

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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 - personnel, technology, 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, 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

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Delivery Phase

Service Provider
Concerned with service delivery including management of service delivery, 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, including the ongoing monitoring of service provider performance to verify that commitments are being met, monitoring changes, management of the finances and agreements associated with the service provision, 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

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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, 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
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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, 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
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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 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, during renewal, or during normal completion − Managing 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, 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

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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

• • •

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Outsourcing for Service Providers

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Phases of Outsourcing Relationship

Ongoing

Initiation

Delivery

Completion

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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

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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 - personnel, technology, infrastructure, applications Transition of service
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Delivery Phase

Concerned with service delivery including management of service delivery, 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

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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

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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, systems and applications infrastructure used to support delivery of service
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Key Capabilities Within Outsourcing Lifecycle
People Management Performance Management Relationship Management Technology Management

Knowledge Management

Ongoing

Threat Management

Initiation

Delivery

Completion

Service Transfer
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Contracting

Service Design and Deployment

Service Delivery

Service Transfer
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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 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

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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, 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
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• • •

• •

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, problems and concerns arise across outsourcing contracts Learn from the issues to avoid them

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Key Issues For Successful Outsourcing
1. Establishing and maintaining trust with stakeholders 2. Managing stakeholder expectations 3. Translating implicit and explicit needs into defined requirements with agreedupon levels of quality 4. Establishing well-defined contracts with stakeholders, including clients, suppliers and partners 5. Reviewing service design and deployment to ensure adequate coverage of the requirements 6. Ensuring the effectiveness of interactions with stakeholders 7. Managing supplier and partner relationships to ensure that commitments are met 8. Ensuring compliance with statutory and regulatory requirements 9. Managing clients’ security 10. Managing cultural differences between stakeholders 11. Monitoring and controlling activities to consistently meet the service delivery commitments
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Key Issues For Successful Outsourcing
12. Monitoring and managing clients’ and end-users’ satisfaction 13. Building and maintaining the competencies that enable personnel to effectively perform their roles and responsibilities 14. Managing employee satisfaction, motivation and retention 15. Establishing and maintaining an effective work environment 16. Maintaining a competitive advantage 17. Innovating, building flexibility and increasing responsiveness to meet unique and evolving client requirements 18. Managing rapid technological shifts and maintaining the availability, reliability, accessibility and security of technology 19. Capturing and using knowledge 20. Smoothly transferring services and resources 21. Maintaining continuity of the service delivery 22. Capturing and transferring knowledge gained to the client during contract completion 23. Measuring and analysing the reasons for termination, to prevent reoccurrence
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Issue 1 - 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, software, communications, services By effectively managing expectations and responding to personnel, clients and end-users, service provider establishes trust with its stake- holders to help establish long-term relationships

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Issue 2 - Managing Stakeholder Expectations

Differences in expectations between the client, 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

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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
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Issue 4 - Establishing Well-Defined Contracts With Stakeholders, Including Clients, 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, modify services based on those changes and amend contracts to reflect the current requirements and commitments
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Issue 5 - 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, successful engagements include rigorous reviews of the service design and deployment activities by the clients and the service provider prior to service delivery

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Issue 6 - 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

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Issue 7 - 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

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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

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Issue 9 - Managing Clients’ Security

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

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Issue 10 - Managing Cultural Differences Between Stakeholders

In large-scale outsourcing there are many potential cultural differences between service providers, clients, end-users, suppliers and partners These include differences between country, region and organisational culture These differences need to be identified and addressed in order to guard against breakdowns in communication

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Issue 11 - 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, thereby escalating issues as appropriate to ensure that they are addressed in a timely basis

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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

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Issue 13 - 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.

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Issue 14 - Managing Employee Satisfaction, 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

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Issue 15 - 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

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Issue 16 - 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
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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

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Issue 18 - Managing Rapid Technological Shifts And Maintaining The Availability, Reliability, 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

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Issue 19 - 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, retrieval and use of knowledge gained on engagements

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Issue 20 - 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

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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, preparing and responding to threats and coordinating the transfer of service during periods of transition

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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

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Issue 23 - Measuring And Analysing The Reasons for Termination to prevent Reoccurrence

Termination may happen for a number of reasons, including an inability of the service provider to meet changing client needs, resolve problems, meet commitments, 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

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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 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

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1 Service Transfer - 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

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1 Service Transfer - 1.1 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
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1 Service Transfer - 1.2 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
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1 Service Transfer - 1.3 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, 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
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1 Service Transfer - 1.4 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, 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
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1 Service Transfer - 1.5 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

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1 Service Transfer - 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

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2 Contracting - 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

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2 Contracting - 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

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106

2 Contracting - 2.2 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

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107

2 Contracting - 2.3 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

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108

2 Contracting - 2.4 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

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109

2 Contracting - 2.5 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

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110

2 Contracting - 2.6 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

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2 Contracting - 2.7 Review Requirements

Scope
− Prior to committing to the prospective client, 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
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2 Contracting - 2.8 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

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113

2 Contracting - 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

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2 Contracting - 2.10 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, 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
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2 Contracting - 2.11 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, 2011

116

3 Service Design and Deployment - 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

117

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, 2011

118

3 Service Design and Deployment - 3.2 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, 2011

119

3 Service Design and Deployment - 3.3 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, 2011

120

3 Service Design and Deployment - 3.4 Service Specification

Scope
− Create the service specification
• Create a service specification that clearly, 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. 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, the agreed-upon service levels, if any and the interfaces between the organisation, the clients and the end-users • As the service evolves over time, 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, 2011 121

3 Service Design and Deployment - 3.5 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 Service Design and Deployment - 3.6 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, 2011

123

3 Service Design and Deployment - 3.7 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, 2011

124

3 Service Design and Deployment - 3.8 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

4 Service Delivery - 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

126

4 Service Delivery - 4.1 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, 2011

128

4 Service Delivery - 4.3 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, 2011

129

4 Service Delivery - 4.4 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 Service Delivery - 4.5 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, 2011

131

4 Service Delivery - 4.6 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, 2011

132

4 Service Delivery - 4.7 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, 2011

133

4 Service Delivery - 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, 2011

134

5 Knowledge 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

135

5 Knowledge Management - 5.1 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, 2011

136

5 Knowledge Management - 5.2 Provide Required Information

Scope
− Identify, 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 − Document and implement work products and tasks required for identifying, controlling and providing the information personnel need to perform their work − Support the implementation of identifying, controlling and making available the information personnel need to perform their work
April 3, 2011 137

5 Knowledge Management - 5.3 Knowledge System

Scope
− Establish and maintain a knowledge system to identify, 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, 2011

138

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 - 6.1 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, 2011

145

6 People Management - 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, 2011 146

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, 2011

148

6 People Management - 6.5 Define Roles

Scope
− Define and communicate the roles, 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, responsibilities and authority of personnel in the organisation − Document and implement the work products and tasks required for defining and communicating the roles, 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, 2011 149

6 People Management - 6.6 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, 2011

150

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, 2011

151

6 People Management - 6.8 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, 2011

152

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

6 People Management - 6.10 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, 2011

154

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, 2011 155

7 Performance 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

156

7 Performance Management - 7.1 Engagement Objectives

Scope
− Define, communicate and track engagement objectives

Activities
− Provide support for creating and maintaining the work products and tasks for defining, communicating and tracking engagement objectives − Document and implement the work products and tasks required for defining, communicating and tracking engagement objectives − Support the implementation of defining, communicating and tracking engagement objectives

April 3, 2011

157

7 Performance Management - 7.2 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, 2011

158

7 Performance Management - 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, 2011

159

7 Performance Management - 7.4 Organisational Objectives

Scope
− Define, communicate and track organisational objectives

Activities
− Provide support for creating and maintaining the work products and tasks for defining, communicating and tracking organisational objectives − Document and implement the work products and tasks required for defining, communicating and tracking organisational objectives − Support the implementation of defining, communicating and tracking organisational objectives

April 3, 2011

160

7 Performance Management - 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, 2011

161

7 Performance Management - 7.6 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, 2011

162

7 Performance Management - 7.7 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 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

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164

7 Performance Management - 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

165

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, 2011 166

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

8 Relationship 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

168

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, 2011

169

8 Relationship Management - 8.2 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 - 8.3 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, 2011

171

8 Relationship Management - 8.4 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, 2011

172

8 Relationship Management - 8.5 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, 2011

173

8 Relationship Management - 8.6 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 Relationship Management - 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, 2011

175

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

9 Technology 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

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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, 2011

178

9 Technology Management - 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, 2011

179

9 Technology Management - 9.3 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, 2011

180

9 Technology Management - 9.4 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, 2011

181

9 Technology Management - 9.5 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, 2011

182

9 Technology Management - 9.6 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, 2011

183

10 Threat 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

184

10 Threat Management - 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 - 10.2 Engagement Risk

Scope
− Identify, assess and manage risks specific to the client engagement

Activities
− Provide support for creating and maintaining the work products and tasks for identifying, assessing and managing engagementspecific risks − Document and implement the work products and activities required to identify, assess and manage engagement-specific risks − Support the implementation of identifying, assessing and managing engagement-specific risks

April 3, 2011

186

10 Threat Management - 10.3 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, 2011

187

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, 2011

188

10 Threat Management - 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, 2011

189

10 Threat Management - 10.6 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

10 Threat Management - 10.7 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, 2011

191

Outsourcing for End-User Organisations

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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, selecting and negotiating with service providers Conducting service provider governance and performance management Managing relationships with their service providers
April 3, 2011 193

• •

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

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195

Outsourcing Organisation Issue 1 - Establishing a Strategy For the Organisation’s Outsourcing Activities
• • •

May not have sufficient focus on analysis, 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, growth and continuity strategies − Be defined, documented and followed − Be regularly updated as conditions change. − 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, core/non-core, 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, 2011 196

Outsourcing Organisation Issue 2 - 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, the impact on short-term organisational performance, whether outsourcing is appropriate or if they are joining a fad, 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” - outsourcing a problem area as a way to solve that problem - often leads to more distress
− Passing a problem to a service provider does not eliminate the problem - it increases the number of parties involved in or trying to solve it

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197

Outsourcing Organisation Issue 3 - Actively Managing Outsourcing Risks
• •

Outsourcing is not the transfer the governance, accountability or risks associated with the outsourced activity Client organisations should actively identify, manage and mitigate all relevant risks
− Poor strategic planning with respect to outsourcing − Inadequate alignment of the outsourcing strategy, 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, where a highly visible problem at the service provider is a potential problem for the client due to adverse publicity

April 3, 2011

198

Phases of Outsourcing Relationship for End-User Organisations

Ongoing

Analysis

Initiation

Delivery

Completion

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Phases of Outsourcing Relationship

Every outsourcing relationship has five phases
− Analysis – 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 − 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

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200

Analysis Phase

Concerned with analysing operations and functions to identify those services, 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, 2011

201

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, 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, 2011 202

Delivery Phase

Concerned with monitoring the service provider’s service delivery capabilities, including the ongoing monitoring of service provider performance to verify that commitments are being met, monitoring changes, management of the finances and agreements associated with the service provision, 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

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, during renewal, or during normal completion − Managing 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, 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

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, systems and applications infrastructure used to support delivery of service
April 3, 2011 205

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

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206

Key Capabilities and Constituent Practices of Outsourcing Process - 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 7.1 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

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207

Key Capabilities and Constituent Practices of Outsourcing Process - 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

9.1 Outsourcing Sponsorship

10.1 Outsourcing Policy

11.1 Service Provider Interactions

12.1 Organisational Outsourcing Performance

13.1 Prepare for Organisational Change

14.1 Assign Outsourcing Responsibilities

15.1 Provide Required Information

16.1 Asset Management

17.1 Outsourcing Risk Management

9.2 Outsourcing Constraints

10.2 Service Provider Management

11.2 Service Provider Relationships

12.2 Capability Baselines

13.2 Stakeholder Involvement

14.2 Personnel Competencies

15.2 Knowledge System

16.2 License Management

17.2 Organisational Risk Management

9.3 Potential Outsourcing Areas

10.3 Internal Stakeholder Management

11.3 Internal Relationships

12.3 Benchmark Outsourcing Processes

13.3 Define Future State

14.3 Organisational Outsourcing Competency

15.3 Market Information

16.3 Technology Integration

17.3 Intellectual Property

9.4 Outsourcing Objectives

10.4 Defined Outsourcing Processes

11.4 Issue Management

12.4 Improve Outsourcing Processes

13.4 Human Resource Changes

14.4 Define Roles

15.4 Lessons Learned

17.4 Security and Privacy

9.5 Organisational Outsourcing Strategy

10.5 Align Strategy and Architectures

11.5 Cultural Fit

12.5 Innovation

13.5 Communicate Organisational Changes

15.5 Share Knowledge

17.5 Compliance

10.6 Business Process Integration

11.6 Collaborative Relationships

12.6 Business Value and Impact

13.6 Organisational Change

17.6 Business Continuity

10.7 Adapt to Business Change

11.7 Innovative Relationships

12.7 Outsourcing Alignment

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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, size of system/application being outsourced, 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

• • •

• •

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209

Analysis Phase - Outsourcing Opportunity Analysis
Functional analysis of the current operations of the organisation and identification of potential functions, 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, 2011 210

Analysis Phase - 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, 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, 2011

211

Initiation Phase - Outsourcing Planning

Planning for implementation of the outsourcing approach for a planned outsourcing initiative Establishing a capability to plan and manage the outsourced service. Getting all the resources, including manpower, 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, requests and requirements to prospective service providers
April 3, 2011 212

• •

Initiation Phase - Service Provider Evaluation

Soliciting potential service providers, 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, 2011

213

Initiation Phase - Outsourcing Agreements

• • • • • •

Carrying out service confirmation, 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. Establishing a formal agreement with service providers that clearly articulates the clients’ and service provider’s responsibilities and commitments
April 3, 2011 214

Initiation Phase - Service Transfer

Successfully transferring resources between the client organisation and its service providers by creating and implementing a transfer plan; creating client/service provider teams; identifying key skill sets/personnel to retain in-house or transfer to the service providers; ensuring service design meets the client’s needs; and transferring resources, 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, 2011

215

Delivery Phase - 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, monitoring SLAs, managing performance and taking corrective action, if required. 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, 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, soliciting and evaluating feedback from stakeholders and reviewing performance against the agreed upon service commitments and deliverables
April 3, 2011 216

Completion Phase - 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, lessons learned, 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, ensuring all deliverables are consolidated (code, system documentation, etc) and are handed back to the client, along with required knowledge transfer, as directed by the client organisation
April 3, 2011 217

Ongoing Phase - Outsourcing Strategy Management

Determining the outsourcing strategy and setting organisational objectives or goals for outsourcing Address issues such as will the organisation be outsourcing; how to structure the outsourcing; and what kind of outsourcing strategy to follow in terms of single source, best source, alliance, or other forms of outsourcing agreements

April 3, 2011

218

Ongoing Phase - 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, as well as supplier and partner relationships, to ensure that commitments are met; innovating, 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, control of technology architecture and design and future technology direction for the client organisation
April 3, 2011 219

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, 2011

220

Ongoing Phase - 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, 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, ensuring that continuous improvement enables relationships where the client organisation and the service provider can effectively meet or exceed stakeholder value drivers
April 3, 2011 221

Ongoing Phase - 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), defining the proper strategy for managing change, developing a team of change management leaders, 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, both internal and external, 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, 2011 222

Ongoing Phase - 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.e., training) or acquiring personnel with the necessary competencies to perform the organisation’s outsourcing activities

April 3, 2011

223

Ongoing Phase - 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, but efficient, 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, 2011 224

Ongoing Phase - 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. Managing technology assets and the licensing of technology

April 3, 2011

225

Ongoing Phase - 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, consistent with the organisation’s existing risk management policies, by identifying, assessing and controlling risks • Managing security, privacy, confidentiality and intellectual property threats • Ensuring business continuity, including concerns regarding recovery from disasters • Monitoring statutes and regulations to ensure compliance

April 3, 2011 226

1 Outsourcing Opportunity Analysis - 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

227

1 Outsourcing Opportunity Analysis - 1.1 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, 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, 2011 228

1 Outsourcing Opportunity Analysis - 1.2 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, 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, 2011

229

1 Outsourcing Opportunity Analysis - 1.3 Demand Identification

Scope
− Identify potential outsourcing opportunities − Focus on those opportunities most likely to meet the organisation’s outsourcing objectives, while also meeting the defined criteria, which will lead to further analysis of whether these potential opportunities should be pursued − Without taking a disciplined approach to this decision-making, the organisation risks selecting less than optimum outsourcing opportunities, 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

1 Outsourcing Opportunity Analysis - 1.4 Outsourcing Options

Scope
− Organise the options that the organisation has to source the services, like assessment of the criticality of the business activity, assessment of the external supply market (identification of potential service providers), 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, 2011 231

2 Outsourcing Approach - 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

232

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, 2011

233

2 Outsourcing Approach - 2.2 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, 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 Outsourcing Approach - 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, 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, 2011

235

2 Outsourcing Approach - 2.4 Impact and Risk Analysis

Scope
− Perform impact and risk analyses of the proposed outsourcing action − Identify, 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, 2011

236

2 Outsourcing Approach - 2.5 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, consistent with the outsourcing objectives for the client organisation, 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, 2011 237

3 Outsourcing Planning - 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

238

3 Outsourcing Planning - 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, 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, 2011 239

3 Outsourcing Planning - 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, how they are to be delivered and the duration that they are required for, 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, 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, service levels and metrics to clarify customer expectations regarding the nature of the relationship, the levels of service to be delivered, the price and how performance will be measured, 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, 2011 240

3 Outsourcing Planning - 3.3 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, 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

241

3 Outsourcing Planning - 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, 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, 2011

242

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

4 Service Provider Evaluation - 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

244

4 Service Provider Evaluation - 4.1 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, 2011 245

4 Service Provider Evaluation - 4.2 Evaluate Potential Service Providers

Scope
− Evaluate potential service providers using documented criteria and selection procedures − Many aspects, including the strategic alignment, reputation, references, experience, financial goals, risk, 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, 2011

246

4 Service Provider Evaluation - 4.3 Select Candidate Service Providers

Scope
− Select candidate service providers according to the documented selection procedures − By following the documented selection procedures, the client should be able to use the appropriate evaluation criteria, 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, 2011

247

5 Outsourcing Agreements - 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

248

5 Outsourcing Agreements - 5.1 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, 2011

249

5 Outsourcing Agreements - 5.2 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, 2011

250

5 Outsourcing Agreements - 5.3 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, 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, 2011 251

5 Outsourcing Agreements - 5.4 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, 2011

252

5 Outsourcing Agreements - 5.5 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 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 - 6.4 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 Service Transfer - 6.5 Knowledge Transferred Out

Scope
− Ensure that transfer of knowledge to service providers is planned, 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, 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, 2011 261

7 Sourced Services Management - 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

262

7 Sourced Services Management - 7.1 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, 2011

263

7 Sourced Services Management - 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, 2011 264

7 Sourced Services Management - 7.3 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, manage the costs of performing outsourcing management, evaluate financial impact of changes to agreements, clearly understand costs, 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, 2011

265

7 Sourced Services Management - 7.4 Agreement Management

Scope
− Establish and implement procedures for management of agreements governing the outsourced services − Manage organisational understanding of key elements of agreements, as appropriate, such as definitions, service activity and task descriptions, 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, 2011 266

7 Sourced Services Management - 7.5 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, 2011

267

7 Sourced Services Management - 7.6 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, 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, 2011

268

7 Sourced Services Management - 7.7 Service Change Management

Scope
− Establish and implement procedures to manage modifications to services − Major business changes, due to growth, business mergers, acquisitions and reorganisations and changing customer requirements, can require service levels to be adjusted, redefined, 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, 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, 2011 269

7 Sourced Services Management - 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, 2011 270

7 Sourced Services Management - 7.9 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, 2011 271

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, 2011 272

7 Sourced Services Management - 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, identifying necessary amendments to agreements, renewing agreements for an extended duration, 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, 2011 273

8 Outsourcing Completion - 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

274

8 Outsourcing Completion - 8.1 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, 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, 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, 2011

275

8 Outsourcing Completion - 8.2 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, 2011 276

8 Outsourcing Completion - 8.3 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, software, hardware, licenses, facilities, 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, 2011

277

8 Outsourcing Completion - 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, 2011 278

8 Outsourcing Completion - 8.5 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

9 Outsourcing Strategy Management - 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 Sponsorship

10.1 Outsourcing Policy

11.1 Service Provider Interactions

12.1 Organisational Outsourcing Performance

13.1 Prepare for Organisational Change

14.1 Assign Outsourcing Responsibilities

15.1 Provide Required Information

16.1 Asset Management

17.1 Outsourcing Risk Management

9.2 Outsourcing Constraints

10.2 Service Provider Management

11.2 Service Provider Relationships

12.2 Capability Baselines

13.2 Stakeholder Involvement

14.2 Personnel Competencies

15.2 Knowledge System

16.2 License Management

17.2 Organisational Risk Management

9.3 Potential Outsourcing Areas

10.3 Internal Stakeholder Management

11.3 Internal Relationships

12.3 Benchmark Outsourcing Processes

13.3 Define Future State

14.3 Organisational Outsourcing Competency

15.3 Market Information

16.3 Technology Integration

17.3 Intellectual Property

9.4 Outsourcing Objectives

10.4 Defined Outsourcing Processes

11.4 Issue Management

12.4 Improve Outsourcing Processes

13.4 Human Resource Changes

14.4 Define Roles

15.4 Lessons Learned

17.4 Security and Privacy

9.5 Organisational Outsourcing Strategy

10.5 Align Strategy and Architectures

11.5 Cultural Fit

12.5 Innovation

13.5 Communicate Organisational Changes

15.5 Share Knowledge

17.5 Compliance

10.6 Business Process Integration

11.6 Collaborative Relationships

12.6 Business Value and Impact

13.6 Organisational Change

17.6 Business Continuity

10.7 Adapt to Business Change

11.7 Innovative Relationships

12.7 Outsourcing Alignment

April 3, 2011

280

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, 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 - 9.2 Outsourcing Constraints

Scope
− Identify the constraints that impact the client organisation’s potential uses of outsourcing − Understand the strategic, 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, 2011 282

9 Outsourcing Strategy Management - 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, skills or competencies are better handled by others, 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, 2011

283

9 Outsourcing Strategy Management - 9.4 Outsourcing Objectives

Scope
− Define, 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, aligning and documenting outsourcing objectives − Support the implementation of developing, aligning and documenting outsourcing objectives
April 3, 2011 284

9 Outsourcing Strategy Management - 9.5 Organisational Outsourcing Strategy

Scope
− Define, 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, 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, 2011 285

10 Governance Management - 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 Sponsorship

10.1 Outsourcing Policy

11.1 Service Provider Interactions

12.1 Organisational Outsourcing Performance

13.1 Prepare for Organisational Change

14.1 Assign Outsourcing Responsibilities

15.1 Provide Required Information

16.1 Asset Management

17.1 Outsourcing Risk Management

9.2 Outsourcing Constraints

10.2 Service Provider Management

11.2 Service Provider Relationships

12.2 Capability Baselines

13.2 Stakeholder Involvement

14.2 Personnel Competencies

15.2 Knowledge System

16.2 License Management

17.2 Organisational Risk Management

9.3 Potential Outsourcing Areas

10.3 Internal Stakeholder Management

11.3 Internal Relationships

12.3 Benchmark Outsourcing Processes

13.3 Define Future State

14.3 Organisational Outsourcing Competency

15.3 Market Information

16.3 Technology Integration

17.3 Intellectual Property

9.4 Outsourcing Objectives

10.4 Defined Outsourcing Processes

11.4 Issue Management

12.4 Improve Outsourcing Processes

13.4 Human Resource Changes

14.4 Define Roles

15.4 Lessons Learned

17.4 Security and Privacy

9.5 Organisational Outsourcing Strategy

10.5 Align Strategy and Architectures

11.5 Cultural Fit

12.5 Innovation

13.5 Communicate Organisational Changes

15.5 Share Knowledge

17.5 Compliance

10.6 Business Process Integration

11.6 Collaborative Relationships

12.6 Business Value and Impact

13.6 Organisational Change

17.6 Business Continuity

10.7 Adapt to Business Change

11.7 Innovative Relationships

12.7 Outsourcing Alignment

April 3, 2011

286

10 Governance Management - 10.1 Outsourcing Policy

Scope
− Establish and implement the organisational outsourcing policy − Provides the organisational structures, processes and mechanisms needed to manage, 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, 2011

287

10 Governance Management - 10.2 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, 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, 2011 288

10 Governance Management - 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, 2011 289

10 Governance Management - 10.4 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, 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, organizing, acquiring, implementing, delivering, supporting and monitoring outsourcing performance, 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, 2011 290

10 Governance Management - 10.5 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, 2011

291

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, 2011

292

10 Governance Management - 10.7 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, 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, 2011

293

11 Relationship Management - 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 Sponsorship

10.1 Outsourcing Policy

11.1 Service Provider Interactions

12.1 Organisational Outsourcing Performance

13.1 Prepare for Organisational Change

14.1 Assign Outsourcing Responsibilities

15.1 Provide Required Information

16.1 Asset Management

17.1 Outsourcing Risk Management

9.2 Outsourcing Constraints

10.2 Service Provider Management

11.2 Service Provider Relationships

12.2 Capability Baselines

13.2 Stakeholder Involvement

14.2 Personnel Competencies

15.2 Knowledge System

16.2 License Management

17.2 Organisational Risk Management

9.3 Potential Outsourcing Areas

10.3 Internal Stakeholder Management

11.3 Internal Relationships

12.3 Benchmark Outsourcing Processes

13.3 Define Future State

14.3 Organisational Outsourcing Competency

15.3 Market Information

16.3 Technology Integration

17.3 Intellectual Property

9.4 Outsourcing Objectives

10.4 Defined Outsourcing Processes

11.4 Issue Management

12.4 Improve Outsourcing Processes

13.4 Human Resource Changes

14.4 Define Roles

15.4 Lessons Learned

17.4 Security and Privacy

9.5 Organisational Outsourcing Strategy

10.5 Align Strategy and Architectures

11.5 Cultural Fit

12.5 Innovation

13.5 Communicate Organisational Changes

15.5 Share Knowledge

17.5 Compliance

10.6 Business Process Integration

11.6 Collaborative Relationships

12.6 Business Value and Impact

13.6 Organisational Change

17.6 Business Continuity

10.7 Adapt to Business Change

11.7 Innovative Relationships

12.7 Outsourcing Alignment

April 3, 2011

294

11 Relationship Management - 11.1 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, 2011 295

11 Relationship Management - 11.2 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, 2011

296

11 Relationship Management - 11.3 Internal Relationships

Scope
− Establish and implement procedures to manage internal client relationships − Effective collection, 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, 2011

297

11 Relationship Management - 11.4 Issue Management

Scope
− Establish and implement procedures to manage issues and their resolution − Issue management covers identification, documentation, escalation, negotiation and dispute and conflict resolution of issues amongst the client organisation, 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, 2011

298

11 Relationship Management - 11.5 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 - 11.6 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, 2011 300

11 Relationship Management - 11.7 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, 2011

301

12 Value Management - 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 Sponsorship

10.1 Outsourcing Policy

11.1 Service Provider Interactions

12.1 Organisational Outsourcing Performance

13.1 Prepare for Organisational Change

14.1 Assign Outsourcing Responsibilities

15.1 Provide Required Information

16.1 Asset Management

17.1 Outsourcing Risk Management

9.2 Outsourcing Constraints

10.2 Service Provider Management

11.2 Service Provider Relationships

12.2 Capability Baselines

13.2 Stakeholder Involvement

14.2 Personnel Competencies

15.2 Knowledge System

16.2 License Management

17.2 Organisational Risk Management

9.3 Potential Outsourcing Areas

10.3 Internal Stakeholder Management

11.3 Internal Relationships

12.3 Benchmark Outsourcing Processes

13.3 Define Future State

14.3 Organisational Outsourcing Competency

15.3 Market Information

16.3 Technology Integration

17.3 Intellectual Property

9.4 Outsourcing Objectives

10.4 Defined Outsourcing Processes

11.4 Issue Management

12.4 Improve Outsourcing Processes

13.4 Human Resource Changes

14.4 Define Roles

15.4 Lessons Learned

17.4 Security and Privacy

9.5 Organisational Outsourcing Strategy

10.5 Align Strategy and Architectures

11.5 Cultural Fit

12.5 Innovation

13.5 Communicate Organisational Changes

15.5 Share Knowledge

17.5 Compliance

10.6 Business Process Integration

11.6 Collaborative Relationships

12.6 Business Value and Impact

13.6 Organisational Change

17.6 Business Continuity

10.7 Adapt to Business Change

11.7 Innovative Relationships

12.7 Outsourcing Alignment

April 3, 2011

302

12 Value Management - 12.1 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, 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, 2011 303

12 Value Management - 12.2 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 Value Management - 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, 2011

305

12 Value Management - 12.4 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, 2011

306

12 Value Management - 12.5 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, 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, 2011 307

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

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, 2011 309

13 Organisational Change Management - 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 Sponsorship

10.1 Outsourcing Policy

11.1 Service Provider Interactions

12.1 Organisational Outsourcing Performance

13.1 Prepare for Organisational Change

14.1 Assign Outsourcing Responsibilities

15.1 Provide Required Information

16.1 Asset Management

17.1 Outsourcing Risk Management

9.2 Outsourcing Constraints

10.2 Service Provider Management

11.2 Service Provider Relationships

12.2 Capability Baselines

13.2 Stakeholder Involvement

14.2 Personnel Competencies

15.2 Knowledge System

16.2 License Management

17.2 Organisational Risk Management

9.3 Potential Outsourcing Areas

10.3 Internal Stakeholder Management

11.3 Internal Relationships

12.3 Benchmark Outsourcing Processes

13.3 Define Future State

14.3 Organisational Outsourcing Competency

15.3 Market Information

16.3 Technology Integration

17.3 Intellectual Property

9.4 Outsourcing Objectives

10.4 Defined Outsourcing Processes

11.4 Issue Management

12.4 Improve Outsourcing Processes

13.4 Human Resource Changes

14.4 Define Roles

15.4 Lessons Learned

17.4 Security and Privacy

9.5 Organisational Outsourcing Strategy

10.5 Align Strategy and Architectures

11.5 Cultural Fit

12.5 Innovation

13.5 Communicate Organisational Changes

15.5 Share Knowledge

17.5 Compliance

10.6 Business Process Integration

11.6 Collaborative Relationships

12.6 Business Value and Impact

13.6 Organisational Change

17.6 Business Continuity

10.7 Adapt to Business Change

11.7 Innovative Relationships

12.7 Outsourcing Alignment

April 3, 2011

310

13 Organisational Change Management - 13.1 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, 2011

311

13 Organisational Change Management - 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, 2011

312

13 Organisational Change Management - 13.3 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

13 Organisational Change Management - 13.4 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, 2011

314

13 Organisational Change Management - 13.5 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, 2011

315

13 Organisational Change Management - 13.6 Organisational Change

Scope
− Manage organisational change to support outsourcing actions − New service delivery model that outsourcing brings to an organisation impacts all stakeholders - employees, 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, 2011

316

14 People Management - 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 Sponsorship

10.1 Outsourcing Policy

11.1 Service Provider Interactions

12.1 Organisational Outsourcing Performance

13.1 Prepare for Organisational Change

14.1 Assign Outsourcing Responsibilities

15.1 Provide Required Information

16.1 Asset Management

17.1 Outsourcing Risk Management

9.2 Outsourcing Constraints

10.2 Service Provider Management

11.2 Service Provider Relationships

12.2 Capability Baselines

13.2 Stakeholder Involvement

14.2 Personnel Competencies

15.2 Knowledge System

16.2 License Management

17.2 Organisational Risk Management

9.3 Potential Outsourcing Areas

10.3 Internal Stakeholder Management

11.3 Internal Relationships

12.3 Benchmark Outsourcing Processes

13.3 Define Future State

14.3 Organisational Outsourcing Competency

15.3 Market Information

16.3 Technology Integration

17.3 Intellectual Property

9.4 Outsourcing Objectives

10.4 Defined Outsourcing Processes

11.4 Issue Management

12.4 Improve Outsourcing Processes

13.4 Human Resource Changes

14.4 Define Roles

15.4 Lessons Learned

17.4 Security and Privacy

9.5 Organisational Outsourcing Strategy

10.5 Align Strategy and Architectures

11.5 Cultural Fit

12.5 Innovation

13.5 Communicate Organisational Changes

15.5 Share Knowledge

17.5 Compliance

10.6 Business Process Integration

11.6 Collaborative Relationships

12.6 Business Value and Impact

13.6 Organisational Change

17.6 Business Continuity

10.7 Adapt to Business Change

11.7 Innovative Relationships

12.7 Outsourcing Alignment

April 3, 2011

317

14 People Management - 14.1 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, 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

14 People Management - 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 People Management - 14.3 Organisational Outsourcing Competency

Scope
− Define and manage a workforce competency focused on outsourcing across the organisation − Organization must develop a workforce competency in organizing, planning, managing and evaluating outsourcing activities − Failure to address the knowledge, 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, 2011

320

14 People Management - 14.4 Define Roles

Scope
− Define and communicate the roles and responsibilities of outsourcing personnel across the organisation − Clearly define the roles, responsibilities and authority of outsourcing personnel, as part of the overall outsourcing process, 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, 2011 321

15 Knowledge Management - 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 Sponsorship

10.1 Outsourcing Policy

11.1 Service Provider Interactions

12.1 Organisational Outsourcing Performance

13.1 Prepare for Organisational Change

14.1 Assign Outsourcing Responsibilities

15.1 Provide Required Information

16.1 Asset Management

17.1 Outsourcing Risk Management

9.2 Outsourcing Constraints

10.2 Service Provider Management

11.2 Service Provider Relationships

12.2 Capability Baselines

13.2 Stakeholder Involvement

14.2 Personnel Competencies

15.2 Knowledge System

16.2 License Management

17.2 Organisational Risk Management

9.3 Potential Outsourcing Areas

10.3 Internal Stakeholder Management

11.3 Internal Relationships

12.3 Benchmark Outsourcing Processes

13.3 Define Future State

14.3 Organisational Outsourcing Competency

15.3 Market Information

16.3 Technology Integration

17.3 Intellectual Property

9.4 Outsourcing Objectives

10.4 Defined Outsourcing Processes

11.4 Issue Management

12.4 Improve Outsourcing Processes

13.4 Human Resource Changes

14.4 Define Roles

15.4 Lessons Learned

17.4 Security and Privacy

9.5 Organisational Outsourcing Strategy

10.5 Align Strategy and Architectures

11.5 Cultural Fit

12.5 Innovation

13.5 Communicate Organisational Changes

15.5 Share Knowledge

17.5 Compliance

10.6 Business Process Integration

11.6 Collaborative Relationships

12.6 Business Value and Impact

13.6 Organisational Change

17.6 Business Continuity

10.7 Adapt to Business Change

11.7 Innovative Relationships

12.7 Outsourcing Alignment

April 3, 2011

322

15 Knowledge Management - 15.1 Provide Required Information

Scope
− Identify, 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, controlling and providing the information that personnel need to perform their outsourcing responsibilities − Document and implement the work products and tasks required for identifying, controlling and providing the information that personnel need to perform their outsourcing responsibilities − Support the implementation of identifying, controlling and providing the information that personnel need to perform their outsourcing responsibilities

April 3, 2011

323

15 Knowledge Management - 15.2 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, 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, 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 − Support the implementation of utilising a knowledge system to identify, control and disseminate outsourcing information
April 3, 2011 324

15 Knowledge Management - 15.3 Market Information

Scope
− Organise and use information about the service provider market − Information includes the service provider’s industry market share, 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

15 Knowledge Management - 15.4 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, 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, 2011

326

15 Knowledge Management - 15.5 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, 2011 327

16 Technology Management - 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 Sponsorship

10.1 Outsourcing Policy

11.1 Service Provider Interactions

12.1 Organisational Outsourcing Performance

13.1 Prepare for Organisational Change

14.1 Assign Outsourcing Responsibilities

15.1 Provide Required Information

16.1 Asset Management

17.1 Outsourcing Risk Management

9.2 Outsourcing Constraints

10.2 Service Provider Management

11.2 Service Provider Relationships

12.2 Capability Baselines

13.2 Stakeholder Involvement

14.2 Personnel Competencies

15.2 Knowledge System

16.2 License Management

17.2 Organisational Risk Management

9.3 Potential Outsourcing Areas

10.3 Internal Stakeholder Management

11.3 Internal Relationships

12.3 Benchmark Outsourcing Processes

13.3 Define Future State

14.3 Organisational Outsourcing Competency

15.3 Market Information

16.3 Technology Integration

17.3 Intellectual Property

9.4 Outsourcing Objectives

10.4 Defined Outsourcing Processes

11.4 Issue Management

12.4 Improve Outsourcing Processes

13.4 Human Resource Changes

14.4 Define Roles

15.4 Lessons Learned

17.4 Security and Privacy

9.5 Organisational Outsourcing Strategy

10.5 Align Strategy and Architectures

11.5 Cultural Fit

12.5 Innovation

13.5 Communicate Organisational Changes

15.5 Share Knowledge

17.5 Compliance

10.6 Business Process Integration

11.6 Collaborative Relationships

12.6 Business Value and Impact

13.6 Organisational Change

17.6 Business Continuity

10.7 Adapt to Business Change

11.7 Innovative Relationships

12.7 Outsourcing Alignment

April 3, 2011

328

16 Technology Management - 16.1 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 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, 2011 330

16 Technology Management - 16.3 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, 2011 331

17 Threat Management - 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 Sponsorship

10.1 Outsourcing Policy

11.1 Service Provider Interactions

12.1 Organisational Outsourcing Performance

13.1 Prepare for Organisational Change

14.1 Assign Outsourcing Responsibilities

15.1 Provide Required Information

16.1 Asset Management

17.1 Outsourcing Risk Management

9.2 Outsourcing Constraints

10.2 Service Provider Management

11.2 Service Provider Relationships

12.2 Capability Baselines

13.2 Stakeholder Involvement

14.2 Personnel Competencies

15.2 Knowledge System

16.2 License Management

17.2 Organisational Risk Management

9.3 Potential Outsourcing Areas

10.3 Internal Stakeholder Management

11.3 Internal Relationships

12.3 Benchmark Outsourcing Processes

13.3 Define Future State

14.3 Organisational Outsourcing Competency

15.3 Market Information

16.3 Technology Integration

17.3 Intellectual Property

9.4 Outsourcing Objectives

10.4 Defined Outsourcing Processes

11.4 Issue Management

12.4 Improve Outsourcing Processes

13.4 Human Resource Changes

14.4 Define Roles

15.4 Lessons Learned

17.4 Security and Privacy

9.5 Organisational Outsourcing Strategy

10.5 Align Strategy and Architectures

11.5 Cultural Fit

12.5 Innovation

13.5 Communicate Organisational Changes

15.5 Share Knowledge

17.5 Compliance

10.6 Business Process Integration

11.6 Collaborative Relationships

12.6 Business Value and Impact

13.6 Organisational Change

17.6 Business Continuity

10.7 Adapt to Business Change

11.7 Innovative Relationships

12.7 Outsourcing Alignment

April 3, 2011

332

17 Threat Management - 17.1 Outsourcing Risk Management

Scope
− Establish and implement procedures to identify, assess and manage outsourcing risks − Effective risk management is particularly critical in the early stages of a outsourcing initiative, 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, assessing and managing outsourcing risks − Document and implement the procedures required for identifying, assessing and managing outsourcing risks − Support the implementation of identifying, assessing and managing outsourcing risks
April 3, 2011 333

17 Threat Management - 17.2 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, 2011

334

17 Threat Management - 17.3 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, 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, 2011

335

17 Threat Management - 17.4 Security and Privacy

Scope
− Establish and implement procedures to meet security and privacy requirements − Breakdowns, such as security breaches, can impact the client organisation’s ability to provide business continuity, 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, 2011 336

17 Threat Management - 17.5 Compliance

Scope
− Establish and implement procedures to comply with applicable standards and statutory and regulatory requirements − Client organisation must implement procedures to address governance, risk and compliance − Procedures ensure that they comply with standards, statutes and regulations that impact their outsourcing capability and their outsourced services in order to meet statutory, 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, 2011

337

17 Threat Management - 17.6 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, security, the protection of intellectual property, 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

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

More Information
Alan McSweeney alan@alanmcsweeney.com

April 3, 2011

340

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