Overview of Outsourcing

May 2005
Copyright © 2005 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
 Agenda

• Introduction to Outsourcing
• Preparing for Outsourcing
• Running Outsourcing
• Next Steps in Outsourcing

© 2005 Accenture All Rights Reserved. 2

INTRODUCTION
A Working Definition of Outsourcing

Services
COMPANY OUTSOURCER
Organization Service
Level Level
Agreement Agreement

Outsourcing denotes the continuous

procurement of services from a third party,
making use of highly integrated processes,
organization models and information
systems.

© 2005 Accenture All Rights Reserved. 3

INTRODUCTION
On the origins of Outsourcing

• 50 - 70 Vertical and Horizontal Integration

• 70 - 80 Foreign Direct Investment
• 80 - 90 Global Sourcing
• 90 - Outsourcing

© 2005 Accenture All Rights Reserved. 4

INTRODUCTION
Very different level of acceptance

Banking industry worldwide:

German car manufacturers: cost share of outsourced
degree of vertical integration services 2003
100% 100%

80% 80% 1,4%: costs for

62% 68% outsourcing
60% 76% 60%
Value Creation
Suppliers 40%
98,6%
40%

20% Value Creation 20%

38% 32%
24% Producer
0%
0%
1980 1990 2000

© 2005 Accenture All Rights Reserved. 5

 INTRODUCTION
Types of Outsourcing

Outsourcing models:
Business
processes BPO: Business Process Outsourcing
BPO
Administrative APO: Administrative Process Outsourcing
processes
ASP: Application Service Provider
AMO Application Development
and Maintenance
DBRO: Design, Build, Run & Operate
ADM: Application Develop. & Maintenance

SDO IT-infrastructure ITO: IT Infrastructure Outsourcing

ITS: IT Services, Managed Hosting

© 2005 Accenture All Rights Reserved. 6

 INTRODUCTION
BPO - Business Process Outsourcing

Customized Industrialized
One-to-one One-to-many

low medium high

Degree of industrialization
Custom designed services Similar services delivered Single service delivered
leveraging know-how to multiple clients to multiple clients
simultaneously

© 2005 Accenture All Rights Reserved. 7

INTRODUCTION
AMO - Application Management Outsourcing

© 2005 Accenture All Rights Reserved. 8

 INTRODUCTION
SDO – Service Delivery Outsourcing
• Security
Client Operations Management - End-to-end security services
including firewall management,
Delivery Security Data Technical Network Desktop Supplier intrusion detection, identity
capabilities Centers Support Services Mgmt. Mgmt. management and security policy
&
Mobility • Data Centers
- Remote and on-site managed server
hosting
- Data centers

Sales Support and Mobilization • Technical Support

- Help desk, desk-side and self-service
support
Hosting - Global hubs
• Network Services
Technical Support - Managing data and voice networks

Services Network Management • Desktop Management and Mobility

- PC, laptop, hand-held, distributed
Security Operations • Supplier Management
- Identifying, qualifying, contracting
Desktop Management & Mobility and managing strategic suppliers

Messaging & Collaboration

© 2005 Accenture All Rights Reserved. 9

 INTRODUCTION
Sourcing of Outsourcing

• Off-Site – Local service providers

• Near Shore – Proximity cross-border service
providers
• Off-Shore – Remote Cross-border service
providers

© 2005 Accenture All Rights Reserved. 10

INTRODUCTION
Geographics of Outsourcing

Riga (1)
Ireland (1)
Montreal (1) London (1) Prague (1)
Bratislava (1)
Chicago (1) Toronto (1) Budapest
Madrid (1) Dalian (1)
Cincinnati (1) Wilmington (1)
Atlanta (1) Malaga (1)
Houston (1) Shanghai (1)
Mumbai (3) Hyderabad (1) Manila (8)
Bangalore (3) Chennai (1)

São Paulo (1) Mauritius (1)

© 2005 Accenture All Rights Reserved. 11

INTRODUCTION
Trend is clearly towards Off-Shore

© 2005 Accenture All Rights Reserved. 12

 INTRODUCTION
Typical Outsourcing Clients
Halliburton RAG American Coal
Ameren 02 (formerly BT Cellnet) LASMO plc Repsol YPF
BC Hydro Alcatel Lyondell-Citgo Refining Rhodia
Borden Chemical Algar MOL - Hungarian Oil & Gas Siam Cement
BP AT&T MidAmerican Energy Sithe Energies
Britannia Operator Avaya Norsk Hydro Slovnaft
Cogema BellSouth Orange and Rockland Utilities Southern Company GAS
Dow Chemical Boston Scientific PPL (Pennsylvania Power & Light) Talisman Energy Ltd.
DuPont BT Terasen Utility Services
Dynegy Cegetel Espirito Santo Sequros Thames Water
Direct Energy Essential Home Services (DEEHS) Citrix GE Consumer Finance Ticona
Enbridge Gas Distribution eBay Grupo Financiero BanCrecer Morgan
Total E&P UK Stanley TotalFinaElf)
plc (formerly
Argentaria Enbridge Gas New Brunswick EMC Guy Carpenter Providian
Banca Italease Freeport McMoRan ETS Immobiliere 3F Sonera Royal and SunAlliance
BBVA Infocaja Sun Microsystems Sallie Mae
Banco Rio de la Plata Edgars Consolidate Stores Limited ING Group Tecnomen Santander
Bankiter Alcan Exel plc Italian Pension Agency Telecom Argentina
Ardent HCSC Johannesburg Securities Exchange SchmidtBank
Barclays Bank plc Telecom Italia
Bilbao Bizkaia Kutxa (BBK) Asahi Brewery Health Alliance Plan JPMChase SEC Padova
Telefonica Argentina
Caixa Catalunya Astilleros Espanoles, Impregilo Achieve London Stock Exchange Losango SEI
Texas Instruments
Caja Madrid now IZAR Interstate Brands Mediolanum UBS Life International
Thomson
CortalConsors AstraZeneca KLM Royal Dutch Airlines Meridia
VIA Networks Universal Leven
Best Buy Levi Strauss Neptune Orient Lines
Credit Lyonnais XM Satellite Radio Workers’ Compensation Board
LSG Sky Chefs Thomas Cook New Look
Depository Trust & Clearing Brahma Marriott Xelion
Deutsche Bank Bristol Myers Squibb Payless Shoe Source
MDB Information Network
DnB NOR Campofrio Pfizer
Mecalux
Carrefour Medicines Control Agency Renault Fujitsu Siemens Computers
Caterpillar Milwaukee County Mental Health Resort Condominiums Infineon
Delphi Multibras Electrodomesticos Whirlpool International Infostrada
(RCI) JVC do Brasil Ltda. & Nokia Gradiente Industrial
Delta
Sainsbury’s
Diageo O Globo Empresa
Sara Lee
DSV Group Olivetti Tecnost
Solar Turbines
eLSG SkyChefs.com Omnitel2000
Texas Medicaid
QinetiQ
Transnet Portnet
Siemens Mobile Communications Italy
UPS
SITA
Wärtsilä
© 2005 Accenture All Rights Reserved. Wyeth
13
 INTRODUCTION
Outsourcing Service Providers

Off-Site Near-Shore Off-Shore

• IBM
One Stop • Accenture
• EDS

• Cap
Locals • CSC
• Fujitsu

• Tata
Pure Players • InfoSys
• Guja

© 2005 Accenture All Rights Reserved. 14

 INTRODUCTION
Key drivers for Outsourcing (Survey Results)
Why do outsourcing? - Survey Results

• Access best in class business processes

• Harness leading technologies
• Increase efficiencies
• Enhance capabilities
• Expand service
• Enrich customer relations
• Improve supplier relations
• Free up management time

• Decrease operating costs

© 2005 Accenture All Rights Reserved. 15

INTRODUCTION
Value Contribution of Outsourcing

© 2005 Accenture All Rights Reserved. 16

 Agenda

• Introduction to Outsourcing
• Preparing for Outsourcing
• Running Outsourcing
• Next Steps in Outsourcing

© 2005 Accenture All Rights Reserved. 17

PREPARING FOR OUTSOURCING
From Drivers to Strategic Options
Outsourcing Outsourcing
Change Drivers Options

Defining the Burning In-House Continuous

Platform Status Quo Improvement

Spin-off
Determine Scope
In-House Co-Sourcing
Transformation

Captive
Understand Internal
Constraints

Joint Venture

Understand External External Lift-Out

Constraints Outsourcing

Shoring

© 2005 Accenture All Rights Reserved. 18

 PREPARING FOR OUTSOURCING
The Burning Platform
BUSINESS CONCERNS
• Perceived low availability of services
 Perceived low level of service quality
(accessibility, turn-around time etc.)
 No clear service reporting and service
management
 Roles & Responsibilities not clear. Processes
unclear, too slow, too many hand-offs
• Slow and error-prone service introduction
• Unsatisfactory support of remote sites &
subsidiaries
• No service culture
• Cost allocation & charges unclear and cannot be
influenced by business decisions
 …
IT CONCERNS
 Unreasonable service level expectations from
business
 No cost & resource awareness
 Large number of non-standard work requests
• Overlarge project portfolio, paired with spaghetti
development infrastructure
• High-level of business applications
• Inefficient / underutilized server platform, aging
central technology platforms and complex
networks
 Large and divers skill pool required to support
infrastructure
 …

Change Management Service Budget Financial Infrastructure Skill & Organizational Time to
Drivers Control Scope & Levels Flexibility Quality Capability Impact Benefit
Level Pool
Client
Rating

© 2005 Accenture All Rights Reserved. 19

 PREPARING FOR OUTSOURCING
Outsourcing Options & Contribution
Management Control

Service Scope & Level

Budget Levels

Financial Flexibility

Infrastructure Quality

Skill & Capability Pool

Organizational Impact

Time to Benefit
Sourcing
Option

Spin-off High Limited Limited None None None Limited Short

Co-Sourcing Medium Medium Medium Limited Medium Medium Limited Medium

Captive High Medium Low Low Medium Low Medium Long

Joint Venture Medium Medium Medium Medium Medium Medium Medium Long

Lift-Out Low Strong Strong Medium Medium Medium Strong Medium

Shoring Low Strong Strong Strong Strong Strong Strong Short

© 2005 Accenture All Rights Reserved. 20

 PREPARING FOR OUTSOURCING
Understand Internal Constraints
• Availability of Seed Money – I need to reduce cost,
Procurement,
this requires efficiency gains, efficiency gains require Financing & Head Count &
Quick Wins Infrastructure
investments… Improvement

• Structural Inflexibility – Your current business and Reduce

External Services
Change
Application &
application architecture may not allow for simple and Technology
Architecture
low cost ICT changes € ILLUSTRATIVE

• Time to Benefit – Most “quick-wins” have already

been explored over the last couple of years. Major
initiatives have pay-backs seldom shorter than 24 – 6 Months 12 Months 18 Months 24 Months 30 Months 36 Months

36 months
• Business vs. IT Projects – Most projects are
ICT
invisible to the normal business users and do not Budget
Business Projects
directly contribute to business revenue generation - Illustrative - 20 %
Discretionary
• Capacity & Know-How – Are there sufficient SWR & NSWR
10 %
internal resources available to drive the change in a
Maintenance
timely fashion? Will heavy external resource usage 15 %
kill the business case?
Operate &
• Change Capacity – Can the internal organization Infrastructure Fixed
absorb this change now (ex. Overall moral, unions, 45%

etc.)
Manage & Support
• Sustainability – Can initiatives be maintained in 10 %
light of business development?

© 2005 Accenture All Rights Reserved. 21

PREPARING FOR OUTSOURCING
Understand Partner Constraints

Criteria Assessment
Financials • Service providers are mainly driven by volume, and to a lesser extend
by margin and margin composition
Duration of Contract • 3 years is standard, but will not allow time for fundamental
transformations.
• 5 years gives more room for change
Scope of Technology & • In how far can the existing park be integrated into provider’s
Services infrastructure & skill pool
Demand Stability • In how far can demand for service delivery be accurately assessed?

Scope of Control • How much insight & governance control does the client want to exert?
Which service model will prevail?
Transformation Potential • What are the potential synergies in terms of people, processes,
infrastructure etc. What are the hand-back constraints? How will
benefits be shared?
Follow-up Business • What else might be offered to the client (ex. Business process
outsourcing?)
… …

© 2005 Accenture All Rights Reserved. 22

 PREPARING FOR OUTSOURCING
Approach to Outsourcing
Transformation

 Mobilize and design

Decision  Implementation

IT Opportunity Assessment

 Assess current environment

 Define Target Model and
sourcing strategy
 Create change program Outsourcing

 Supplier selection
 Transition
 Transformation

Assess Current Define Target Model

Environment and sourcing Create Programs
strategy

“What needs to “What must we “How will we

change?” change to?” implement the
Kickoff Half-day Executive changes?” Decision
Executive Meeting
Timeframe Workshop

High • Baseline the business and operating
Level direction and strategy as applicable
Activities
• Benchmark expenses to similar
industry segments across
functions/processes
• Interview key stakeholders
• Understand key drivers of resource
utilization to set a baseline and
construct an economic model
• Plan and develop material for
executive workshop
• From workshop, identify and • Develop high-level implementation
build out “to-be” state roadmaps based on approved
target operating model and
• Define future sourcing strategy
sourcing strategy
• Identify initial areas of cost
• Identify key stakeholders and
savings and prioritize based on
related action plan
future direction
• Define economic model for the
• Identify 4-5 areas for focused
integrated change program
planning
• Identify Infrastructure &
Operations management and
organization impacts and
corresponding risks

© 2005 Accenture All Rights Reserved. 23

 PREPARING FOR OUTSOURCING
Assess Operating Model Impact
Application Development Management (ADM): Split-up of CLIENT EXAMPLE
work steps
In-house / On-shore In-house / Off-shore
Outsourcing / On-shore
Outsourcing / Off-shore
10%Business Requirements 100% Resources on-site
Concept
Development

Detailed Design
20%Functional Design 30% Design 70% Technical Design
40%Requirements refinement/design control 20% Build 80% Majority of build offshore
Product test
25%Acceptance test 30% Test 70% Integration test and fixing
Deployment assistance
5% Deployment 75% Deploy 25% Offshore resources onshore

40%Requirements, Functional Design and Acceptance 30% 70% Build, test and implementation
Enhancements
Maintanance

10%Acceptance and Implementation Technical changes, as

20% Technical Upgrades 80%
requested, assuming no new
10%Acceptance and Implementation
functionality
20% Performance Tuning 80%

40%Prioritization, Escalation 20% 80% Fixes and root cause analysis

Fix on Fail
2nd level support

© 2005 Accenture All Rights Reserved. 24

 PREPARING FOR OUTSOURCING
Do not forget TUPE
• TUPE stands for The Transfer of Undertakings (Protection of
Employment) Regulations 1981. The Regulations were introduced to
safeguard employees’ rights in the event of a transfer of an
undertaking, business or part of a business. This includes:

– The obligation to inform and consult all employees in scope

transfer
– Transferee inherits all claims and statutory rights
– Continuity of employment is preserved for employees
– Employees transfer on their existing terms and conditions of
employment
– Transfer connected dismissals are automatically unfair

© 2005 Accenture All Rights Reserved. 25

 PREPARING FOR OUTSOURCING
Key Data Components

“What needs to change?” “What must we change to?” “How will we implement
the changes?”

Im p r o v e C o m m u n i t y In fo r m a t io n
B a l a n c e d M e m b e r s h i p G r o w th

Im p r o v e C u s t o m e r In f o r m a ti o n
I m p r o v e P r o v id e r I n fo r m a t i o n

I m p r o v e I n t e r n a l In f o r m a t i o n
R is k o f A b i li ty to Im p l e m e n t

S u p p o r t s A ll i n a E x p e r i e n c e
I m p r o v e E m p lo y e e S e r v i c e
( E a r l y e s ti m a t e in M i l li o n s )

L e n g t h o f P r o j e c t ( m o n th s )

Im p r o v e C u s t o m e r S e r v i c e
A d m i n is tr a ti v e C o s t M g m t.

M a t c h w it h A l li n a IT F o c u s
I m p r o v e H e a l th O u t c o m e s
Im p r o v e P r o v i d e r S e r v i c e

I m p r o v e C li n i c a l Q u a l i ty
Financial
Margin/Growth Service Health Information Allina

R e v e n u e G e n e ra tio n

M e d ic a l C o s t M g m t .
P r o je c t C o s t R a n g e

B a r rie r s to C h a n g e
Analysis Target Business Process Area /
Change Initiatives

Operating
Model
Develop Products and Services
1.1 Pr edict local market changes…
1.2 Assess internal execution capabilities…
1.3 Design more flexible products…
1.4 Segment population better…
1.5 Communicate during product development…
Manage Delivery Capacity
2.1 Suppor t pull-through strategy…
2.2 Better manage provider contract terms…
2.3 Model provider locations…
2.4 Track contracts mor e closely…
2.5 Innovate new reimbursement models…
2.6 Roll out provider profiling…
2.7 Enhance Q- Star to suppor t providers
0.1 - 0.2 12 L L M L L H L
0.1 - 0.2 12 L L M M L L M
0.5 - 1 6 M L H L L L M
0.5 - 1 6 H H H M M H H
0 3 L L L L L M L
0.3 - 0.5 6 M M M M L M H
0.1 - 0.2 3 M L M L L L L
0.2 - 0.5 9 M L L H L L M
0.5 - 1 9 M M L H L M M
1 - 1.5 12 H H H M L L M
0.5 - 1 12 H M H M L H M
0.3 - 0.5 6 L L L H L H L

Sell P roducts and Services

3.1 Enable electronic enrollment… 0.5 - 2 12 H M M H L M H
3.2 Assemble member -unique benefits… 1 - 2 18 H H M H L L H

Summary of IT Capabilities (Summer 2000) 3.3 Manage workflow electronically…

3.4 Reinvent broker value chain…
1
1 - 3
9
18
L
H
M
H
L
H
H
H
L
L
H
M
H
M
3.5 Improve automation of buyer contracts… 0.25 - 0.5 9 L L M H L M M
3.6 Enhance underwr iting capability… 0.5 - 1 9 L M H M L M L
3.7 Improve SSS functionality… 0.5 - 1 6 L M L M L H L
IT Capability Performance Summary of Issues 3.8 Enhance employer group reporting… 0.25 - 0.5 6 L L L H L H L

Operations Governance Inadequate

Best
Practice
Fundamental issues in the partnership between IT and the
business
Deliver Health Care Products and Services
4.1 Coordinate health improvement initiatives…
4.2 Triage members and channel them…
4.3 Develop outcomes management strategy…
4.4 Enable doctors to perform HRA s…
0.1 - 0.3
0.1 - 0.3
1 - 3
0.1 - 0.3
3
6
18
6
L
L
M
H
L
M
H
L
M
M
H
L
L
M
L
L
M
M
H
H
M
M
M
M
H
H
M
M

Maturity
4.5 Develop P roactive Interventions… 0.5 - 1 9 H M M M M H H
Strategy Development Inadequate
Best Highly reactive organisation, unintegrated silos, limited 4.6 Improve case management capability… 0.5 - 1.5 12 L M H M M L M
Practice coherence of vision
& Planning 4.7 Better match transitions and transactions across Allina… 0.5 - 1.5 12 M H L H L M H
4.8 Improve disease management capability… 0.5 - 1.5 18 M H H M H M M

Deliver Administrative Products and Services

Architecture Best Beyond a few well-intentioned individuals, there is little

Model™
Inadequate 5.1 Create reimbursement modeling system… 0.5 - 1 12 L H M L L L L
Practice evidence of architecture leadership
Management 5.4 Stabilize key system availability and performance… 0.5 - 2 12 L L L M L H L
5.5 Create business-specific data warehouses… 1 - 3 18 L H M M L H H
Solutions 5.6 Increase electronic claims submission… 0.5 - 1.5 12 M M M M L H L
Best Major issues recognised; but change is hugely challenging. 5.7 Implement utilization management tools… 0.5 - 1 9 L M H L L M L
Development & Inadequate
Practice There is still a lack of partnership between SC and ISSM 5.8 Improve referral/authorization/precerts… 0.25 - 0.5 6 L L M H L L H
Planning 5.10 Improve COSMOS management reporting… 0.1 - 0.3 6 L L L L L H L

Support Relationship Building and Management

Best
Service Delivery Inadequate
Practice
Legacy is reasonably stable - but are we ready for “e”? 6.1 Automate appeal/complaint pr ocess… 0.1 - 0.2 9 L L L M L L M
6.3 Create proactive intervention facility… 0.5 - 1 12 M M M H M H H

Gap Analysis
6.5 Develop life care plans for members… 1 - 2 18 H H M H H M H
6.6 Improve information distribution… 0.1 - 1.5 9 L M L M L H L
Resource Inadequate
Best Some poor financial controls; cultural issues inhibit getting 6.7 Improve access to compliance data… 0.1 - 0.2 6 L L L L L H L

Management Practice best value from IT people. 6.8 Improve per formance reporting capabilities… 0.1 - 0.5 6 L M L M L H L
6.9 Improve Q-S tar stability… 0.1 - 0.3 6 L L L H L M M
6.10 Roll out HealthVillage… 1 12 L L L H L H H
6.11 Develop common call center infrastructure… 1 - 1.5 12 L L M M L L M

Manage Infrastructure
7.5 Enhance communication thr ough entire system… 0.1 - 0.1 3 L L L L L H L
7.6 Turn our data into revenue… 0.5 - 1 6 M M H L L L M
7.7 Solve help desk responsiveness issues… 0.1 - 0.3 6 L M L H L M L

External (M $) 2001 2002 2003 2004 2005

Point-of-View (A) As Is SD Budget Baseline 937 913 925 940 940

Adjustments due to
(B)
Price/Performance evolution
Included in (A)

Current (C) Potential savings from infrastructure 3 28 85 129 129

Infrastructure (D)
(E)=
Other savings opportunities

To Be Operational costs 934

0
875
10
800
40
761
50 50
761
and
(A)-(B)-(C)-
(D)

(F) Organization and One-Time Costs 35 74 70 40 19

Operations Total Costs 969 949 870 801 780
Executive
(G)=(E)+(F)

(H) = (A) -
Cash Flow -32 -36 55 139 160
Review (G)

(H) = (A) -
Cumulative Cash Flow -32 -68 -13 126 286
(G)

(I) Total Revenue 937 903 903 894 894

(J)=(I)-(G) Cash Flow -32 -46 33 93 114

(K) Cumulative Cash Flow -32 -78 -46 48 162

© 2005 Accenture All Rights Reserved. 26

 Agenda

• Introduction to Outsourcing
• Preparing for Outsourcing
• Running Outsourcing
• Next Steps in Outsourcing

© 2005 Accenture All Rights Reserved. 27

RUNNING OUTSOURCING
Framework
Key Principles

Common Objectives & Goals • Delivery Model is based on

several key components
Governance • Common objectives & goals
• End-to-End governance structure
• Multi-level team organisation
Projects Reporting & Status Tracking

• Leveraged core competencies

Contract, SLA, OLA, KPI, MBO

Methods, Standards, and Tools

LOCAL
and skills

Common Processes
SPOC • Formalised SLAs, OLAs, KPIs
• Forum for engaging multiple
NEAR-SHORE sources in the key processes of
communication, coordination and
SPOC
integration
• Optimize global resources
OFF-SHORE
• Encourage collaborative working
• Leverage technology to enable
business strategy
• Establishes a single point of
Client Accenture Skill Pool AMP +… responsibility for entire
relationship.
© 2005 Accenture All Rights Reserved. 28
RUNNING OUTSOURCING
Common Objectives & Goals

© 2005 Accenture All Rights Reserved. 29

RUNNING OUTSOURCING
Standard Methodology & Tools
PLAN ANALYZE DESIGN BUILD TEST

SUPPORT TOOLS AAB IT & Security Policies & Standards DEPLOY

SDM Estimator Deliverables Library & Template
SBP Standards & Methods Project Deliverables Repository
SBP Configuration Manual Accenture Knowledge Exchange

© 2005 Accenture All Rights Reserved. 30

 RUNNING OUTSOURCING
Common Organization Model
Sample Joint
Management

Local Deployment Teams Development Center

Local Deployment Team
Service Mgt & Unit Manager Staff Functions
Local Project Support Office
Manager

Off-Site Coordinator Deployment Support Solution Delivery Team Test & Release Team
Team
Functional Architect Technical Architect & Associate Manager Test Team

Business Lead
(Change Manager) Configuration Table Management & Application Customization
Specialists Release
Local Design & Management
Acceptance Team

Conversion Lead Development Support

Gap Management Mercator Application Integration Team Team

Operational Environment & Dev

Readiness Lead Conversion Support Team Tool Mgt.

Data Migration Team Documentation Data Migration & Deployment Tools Configuration
Management

Vendors Service Delivery Application Client

Partner Management IT Security, Audit
Near Off Other
Partner & Compliance

© 2005 Accenture All Rights Reserved. 31

 RUNNING OUTSOURCING
Common Processes
Local Near-Shore Off-Shore
Scope Work-Stream
Config. Components

Configuration Workshops Support & QA

& Detailed Specification Specifications

Perform Detailed
Technical Review &
Management Sign Off TP Configuration Design & TP Interface Impact Analysis
Prepare Work Package
Functional Technical
Design Design
Check List Check List
Build Prepare Assembly & Non-
(Configure & Code) Regression Test

Support Build Process Support Build & Validate Component Test &
Test Documentation

Component &
Prepare UAT
Product Work TP Quality
Package Check Lists
Delivery
Check List Check List

Product & User Execute Assembly & Non-

Acceptance Test
TP QA Solution TP Regression Test

© 2005 Accenture All Rights Reserved. 32

 Agenda

• Introduction to Outsourcing
• Preparing for Outsourcing
• Running Outsourcing
• Next Steps in Outsourcing

© 2005 Accenture All Rights Reserved. 33

 Next Steps in Outsourcing
• Outsourcing will continue to grow, mainly for BPO…
• Services will become more standardized, creating new
norms
• New service providers will appear in Eastern Europe and
China
• Asian players will move on-shore and compete head-on
with traditional local players
• Local regulations will continue to be opened up to support
cross-border services
• Politics will start to address increasing social issues and
concerns

© 2005 Accenture All Rights Reserved. 34

Questions

© 2005 Accenture All Rights Reserved. 35