chris halward professional development director, noa th ... speaker... · both the outsourcing...

Chris Halward

Professional Development Director, NOA

25th March 2014

• The NOA is the leading global association serving both the outsourcing professional and the outsourcing industry.

• Our vision is to grow the size and positive reputation of the outsourcing industry.

• Our mission is to be both the home and global ambassador of world class outsourcing.

• We are passionate about excellent outsourcing and throughout our 26 years have remained committed to advancing the outsourcing profession and improving and growing the outsourcing industry by driving awareness, education, standards and thought leadership.

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Corporate members include: Avasant Capgemini Barclays BBC Boots Deloitte DWP EE Eversheds HSBC IBM Land Registry Met Police RPC Sitel Unilever Wipro

NOA (2013) LTD © all rights reserved

The

Numbers

8% of UK

GDP**

1,155 o/s

contracts >

$5 in 2013 m*

$19bn total

value*

O/s contracts

in EMEA up

18% to 587*

* ISG global Index 2013 ** Oxford Economics

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External Internal

Inputs Outputs Add

Value


In-house

Outsource Shared Service

?


Rewards Risk

< Costs Access to skills

Access to new tech < capital requirements

Extend into new markets Flexibility

Wrong choices Poor execution

Expectations not realised Loss of control

Change Relationship challenges

Stakeholders impact Inability to manage a new

paradigm


Outsourcing of F&A processes

Drivers: to improve performance, reduce costs and enhance overall quality

Solution: offshoring; centralise contract mgmt.; workflow solution

Why outsource Provider contributes: ◦ Expertise / Global ◦ Capital ◦ Technology (workflow) ◦ Change impetus ◦ Culture fit

Results ◦ < costs ◦ > process efficiencies ◦ Enabled structural change


Rewards Risk

< Costs Access to skills Access to new tech < capital requirements Extend into new markets Flexibility

Wrong choices Poor execution Expectations not realised Loss of control Change Relationship challenges Stakeholders impact Inability to manage a new

paradigm


Facilities Contactor and a NHS Trust £2m / annum to supply catering services mainly for patients, for 7 years, extendable at the discretion of the Trust. The dispute was over a mechanism for service failures which went awry Over a period of 6 months the Trust claimed almost £600k in deductions. This included the following items deemed as failing: £94k for butter sachets; bagels £96k; mousse £84k along with a number of other items. There were a number of causes of this sorry state of affairs which not surprisingly cost both parties substantial sums and led to termination of the arrangement.


Strategic Leadership drives

RE provides the foundation

T&C is the ‘build’ phase

RM drives / develops


Outsourcing must be seen as strategic, and have long term leadership ◦ There should be a consensus

around the ‘Intent’ ◦ Explore the market effectively –

this will inform your RFPs ◦ Develop a Blueprint – what is the

vision, what are the challenges, how will the organisation address them consistently

◦ Recognise the impact of effective Governance early

◦ Emphasise the need for Exit planning

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INTENT

VALID CASE

BUY-IN

CONSISTENCY

“This is not the time to be ‘lovey dovey’. We know what we want, they know what they want – let the best team win!”

Experienced Procurement Director

For some this is a difficult paradigm to shift – the notion that outsourcing is by its nature a collaborative enterprise.

The parties need to consider the other’s needs / issues – a poor deal for one is probably a poor deal for the other.


The feedback we get is that this can often be a really challenge

There is a risk of ‘throwing it over the wall’

It is at this point when a lengthy courtship becomes and marriage becomes real.

It is often the ‘storming’ stage of the relationship


Forming

Storming

Norming

Performing

Overview

T-Mobile / Infosys

Outsourcing the Finance Directorate

Complex – 4 depts, 21 processes, 130 sub processes and 70 FTEs ‘at risk’

The new operation was to be based in India

It was a first time outsourcing experience for the Directorate

Knowledge transfer risk

The need to maintain service levels

Result:

Transition delivered under budget

100% on time recruitment

No escalations

95% on time completion of training / knowledge transfer

Business Case delivered


Commitment from top management on both sides

Robust Governance

Partnership Approach

Selecting the Right Resources to support the Transition

Proactive Project Management


Technology needs to be managed closely and tightly

Cultural integration is critical

Learning Transfer must be planned and resourced carefully

Clearly define the scope

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The phase where expectations are delivered and where the parties are likely to reap what they have sown

What Does Good Look Like?

A sound relationship

A service that keeps up with the

organisation

Robust Governance


‘Lets make this work’ mindset

Clarity and discipline on requirements

Invest in the process and documentation

Prompt feedback and signoff

Communicate and leverage the time zone difference

Acknowledge and bridge the cultural differences

Build other communication channels as well e.g. Skype

When things break, ‘fix not fight’

CULTURAL FIT


Recognise the critical nature of strategic leadership

See the Life Cycle as a system – not as a series of projects

Appreciate that outsourcing requires a sound relationship

Goals need to be aligned

Governance, Governance, Governance


Support the NOA – Join today!

Go to www.noa.co.uk


http://www.noa.co.uk/

QUESTIONS AND COMMENTS


Chris Halward

Professional Development Director, NOA

25th March 2014


• Diploma in Outsourcing

Limited Early Bird Rate: £2,900- available until end of play Friday this week

• NOA Annual Symposium – 10th July

Limited number of complimentary tickets available for buyers

• Buyer Facilitation Service

Did you know that the NOA can help you fine-tune your RFI's?

• Supplier Directory

Our brand new online NOA's Supplier Directory will be opening next week!

• Award Submissions

Enter to the NOA Awards and NOA Outsourcing Professional Awards to showcase your achievements!

For further details please visit www.noa.co.uk

23 23 NOA (2013) LTD © all rights reserved

Membership

The NOA offers two main types of membership; individual and corporate.

◦ Individual = benefits of membership are available for the named individual only

◦ Corporate = benefits of membership available to all employees at the named organisation

NOA Commercial Services

Organisations choose to engage with the NOA through our commercial services to:

◦ Raise their company profile and create awareness to those who actively engage in outsourcing

◦ Develop new business leads and enhance relationships

◦ Promote thought leadership alongside the NOA brand

Qualifications

◦ The NOA is the only UK entity to deliver university accredited professional development to the UK’s outsourcing industry. We offer a programme of both qualifications and training courses, focused on ensuring industry commitment to delivering best practice.

◦ Open to both buyers and suppliers and accredited by Middlesex University, NOA’s qualifications include the industry’s first foundation certificate, professional certificate, and diploma in outsourcing.

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chris halward professional development director, noa th ... speaker... · both the outsourcing...

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