managing your outsourcer
TRANSCRIPT
Presentation to ACS 2014 Technology and IT Conference
Sydney International Airport24th March 2014
Working with your outsourcer – What are the roles and responsibilities of
the various parties
30 years experience between Outsourcing, In house IT and Business Process ownership
Outsourcer “IT”
In house IT “IS”
Business Process Owner
Value = Efficiency X Effectiveness
or more simply
Do the right things and do them well
Applying Ducker to outsourcing …
Credit : Dr Peter Robertson
OutsourcerDo the selected
things well
In house IT Select the right thing to be
done
Requirements
Service Delivery
The size of IS is a key variable, before generalising
0 many
• Heavy reliance on outsourcer
• Trust is key• Account Exec =
CIO
• Service Delivery• Technology• Help Desk• Can become
insular
• Strategy• Architecture• Contract Management• Business Project facilitation
few
Requirements need to be codified by IS
• Strategic Plan and project list• Architecture• Principles• Services and Service Levels• Key Performance indicators
Service Delivery need to be codified and delivered by the outsourcer• Status reports• Service Level compliance• Key performance indicators• Service descriptions• Commercial terms
There are proven ways to assess an organisation's ability to deliver
Objectives
Commitment
Capability
Measurement and Improvement
Both teams need to establish this model
Objectives
Commitment
Capability
Measurement and
Improvement
Objectives
Commitment
Capability
Measurement and
Improvement
IS = Strategic Plan, Architecture and services IT = Contract, Service Definitions, measures
Note : some IS functions can be successfully outsourced, e.g. Boeing
Measurement by the outsourcer Matters
The contract and service level definitions should form the basis of objective discussion
All measures should include a definition
Use traffic lights to highlight non-conformance
Record and follow up on actions
Service Level Compliance on it’s own can let you down
Outsourcer : “100% SLA compliance this month for the 5th month in a row, we should celebrate”
Customer :“we hate you, you are not innovative, you do not support Windows8 on my phone and our applications are rubbish”
What is in the contract, what are the real objectives?
Use Customer Satisfaction Surveys, driven by IS carefully
• Ask the end customer are they happy with their computing ( the sum total of IS and IT )
• Ask why or why not• Process the answers thoroughly– “my computing experience is poor as I am not
allowed to have dual monitors”– “my terminal freezes regularly” ( yet uptime is high )– The application crashes if I enter >100 characters
( the outsourcer may have no control over the app )
Service Improvement Plans – a joint responsibility
• A Service Improvement Plan can be called for by any party
• Improvement areas are agreed• “Completion criteria” are agreed• Funding is agreed• Work is thoroughly governed
Meet regularly – a joint responsibility
• “Online”– You are both partners to a contract and have
obligations to meet and review performance• “Offline”– Have a cup of coffee away from the office, get to
know each other, talk through the culture and history of the organisations
Other Useful tools
• RACI – Responsible, Accountable, Contributor, Information
• Swim lanes• Service Charter• Service Definitions• Team building• Cross pollination
So, what are the roles again?
Credit : Dr Peter Robertson
OutsourcerDo the selected
things well
In house IT Select the right thing to be
done
Requirements
Service Delivery
How do we put these roles in to practice?
Objectives
Commitment
Capability
Measurement and Improvement
There are also often many issues in the interaction and role allocations between In house It and the business
Outsourcer “IT”
In house IT “IS”
Business Process Owner
This time Next time?
thanks ...