offshoring frukostseminarium 20110831

Breakfast Seminar - August 31st, 2011

Presented by:

Daniel Palm

Breakfast Seminar - August 31st, 2011

Agenda

• Welcome

• What is Offshoring – Different types of Offshoring

• Reasons for Offshoring

• Top 10 Advice when Offshoring• Top 10 Advice when Offshoring

• Facts about India and China

• Live Conference with BTCG Islamabad

• Disposition of Education

Welcome

Documentation in English,Presentation in Swedish

Documentation will be provided afterwards

About Daniel Palm

• Have been working with offshoring for about 10 years in India,

Pakistan, China, Thailand etc

• Have managed some 60 offshore projects

• Have worked for Accenture, Capgemini and Ernst & Young• Have worked for Accenture, Capgemini and Ernst & Young

• Resently consulted one of Sweden’s largest banks in

constructing their Asian offshore program

• Is the CEO and founding partner for Business Technology

Consulting Group, BTCG

• Have 5 wonderful children and a lovely wife

Agenda

• Welcome







When did the outsourcing of IT

services start in modern times?

• The concept was first applied by Ross Perot,

when he founded Electronic Data Systems in

1962. EDS told a prospective client;

"You are familiar with designing, manufacturing and selling

furniture, but we're familiar with managing information

technology.

”We can sell you the information technology you need, and

you pay us monthly for the service with a minimum

commitment of two to ten years."

What is Offshoring and Outsourcing?

• Offshoring describes the relocation by a company of a business process from one country to another

• Outsourcing is the practice of hiring an external organization to perform some business functions organization to perform some business functions in a country other than the one where the products or services are actually developed or manufactured.

• Offshore outsourcing is basically outsourcing offshore.

NearshoreDestination

OffshoreDestination

Offshoring

Inshoring

Insourcing

Multi

Country Of Origin

Destination

Onshore

Processes

Dedicated Team

Captive TeamBundle

Sourcing

Multi

Sourcing

On-Shore

Outsourcing

There are four basic types of offshore outsourcing:

Types of Offshoring

ITO Information Technology Outsourcing

including Software Development

BPO Business Process Outsourcing covers

Processes like running call centers,

processing insurance claims etc

Offshoring

processing insurance claims etc

KPO Knowledge Process Outsourcing covers things that require a higher skill set

such as reading X-Rays, performing investment research on stocks and bonds,

handling the accounting functions for a business or executing engineering

design projects.

VA Virtual Assistants - Outsourced administrative work assignments

Offshoring to a Virtual Assistant

What can a VA do?Creation of Presentation

Market Analysis

Writing Reports

Web administation

Blog posts

Article writing

Article search enging submission

Web Account CreationWeb Account Creation

Content Outsourcing

Data Entry

Directory Submission

Web Forum Posting

Answering email

Call center

Customer Service

Search Enging Submission

Social Media Marketing

Video Submission

IT Leading as Most Active

area of Outsourcing

28%

9%

21%

IT

Human Resource

Sales & Marketing

28%

9%

21%

IT

Human Resource

Sales & Marketing

16%

15%

11%

9%Sales & Marketing

Finance

Administration

All Other

16%

15%

11%

9%Sales & Marketing

Finance

Administration

All Other

Källa: Offshore IT Outsourcing, 2010

Agenda

• Welcome







Why would a firm want to offshore?

Why would a firm want to outsource?

Top 10 Reason Companies

Chose to Offshore

Resources Not Avaliable Internally

Free Resources for Other Purposes

Gain Access to World Class Capabilities

Improve Company Focus

Reduce and Control Operating Costs

Source: Tutorial-Reports 2010

0% 20% 40% 60% 80% 100%

Function Difficult to Manage

Share Risks

Take Advantage of Offshore Capabilities

Reduce Time to Market

Accelerate Reengineering Benefits

Resources Not Avaliable Internally

Benefits from offshoring

Approach for country selection

Origin and target regions

Agenda

• Welcome







10 Reasons Why Offshore Outsourcing Projects Fail, and How to Avoid Making the Same Mistakes

1. Bargain Shopping - Most companies will first want the best quality from

the lowest cost service provider. A company must not select a service

provider on cost alone; it should also take into consideration the people, processes, and technology. A company should check the track record of

the service provider before finalizing the deal.

2. Lack of Communication - Outsourcing software development requires a 2. Lack of Communication - Outsourcing software development requires a

lot of internal communication for smooth operation. Offshore

development will rarely have any on site monitoring, so it is vital to have

clear communication daily

3. Offshore Destination Security - Some countries on the global front do

not have political & economical stability. There are high security threats

that can overthrow any governing laws in a matter of just a few days. If

your service provider does not have proper security measures then a

company faces high risk of project failure.


4. Inadequate Planning & Expectation Matrix - Offshore development will fail if a company does not have a proper plan in place in order to manage processes. Also the service provider should know the expectation matrix on quality and timeline procedure

5. Transition Management - Test projects are not a clear indication of how your offshore development will actually be delivered. of how your offshore development will actually be delivered. Focus on detailed reviews, workflows, and functions.

6. Cultural Factors - Offshore development projects are bound to run into misunderstanding or language interpretation problem. Select a vendor who is well balanced in his professional attitude.

7. Complex Contracts - Simple and short contracts preferably for a year will serve you best. Contracts that are complex in litigation will create dissatisfaction over a long period of time.


8. Support Availability - Offshore development requires a continuous online support through out the project duration. Without adequate support, it will be difficult to resolve the problems with accuracy.

9. Infrastructure - Outsourcing software development will fail without the support of ideal infrastructure that is fail without the support of ideal infrastructure that is equipped with the latest technological instruments.

10. Disaster Recovery - A service provider without a strong disaster recovery plan will jeopardize your entire project. In case of crisis, he must be able to store and back up your project data for an uninterrupted project delivery.

Agenda

• Welcome







Did you know that India…

1. …completed hundreds of thousands of US income tax return bills

2. …there are about 1 100 persons just like you

3. …28% of the collected IQ is higher than all the IQ in the USAin the USA

4. …’s life length and children per family is soon like the western world

5. …is the second largest muslim country

6. …has the world’s best management educationsat the moment

India

Advantages

• Well established High Speed

Internet Infrastucture

• Anglo-Saxon Law system

Challenges

• Physical Infrastucture

• Complicated tax system

• Bureaucratic

• English speeking

• Relative highly educated

• Inexpensive labor cost

• Some taxfree zones

• Bureaucratic

• Aging population

• High Employee Turnover

• Price Discrimination is

unknown

Did you know that China…

• … has over 350 million Chinese which lives abovewestern standard of living

• … has more English speaking persons then in all of USA

• … has 50 000 000 students of classical piano playing.

• …has more than 160 cities larger than Stockholm• …has more than 160 cities larger than Stockholm

• …has 1 300 persons just like you

• …has 20 000 characters. The average Chinese person learns only about 5 000 of these in his lifetime.

China

Advantages

• Inexpensive labor cost

• Decent infrastracture,

especially harbours

• Good industrial engineering

Challanges

• Language

• Aging population

• Bureaucratic

• Politically governed• Good industrial engineering

• 450 000 engineering students

graduate from Chinese

universities every year

• Tradition of international trade

• Large domestic market

• Politically governed

• Environmental effects

• Chinese new year – Staff turnover

• Corruption in all markets

• Clan culture

Agenda

• Welcome







Live conference with BTCG Islamabad

Agenda

• Welcome







Utformning av kursen

• Block 1 Översikt av Offshore-marknaden, Magnus Penker– Historik, Begrepp och termer

– Omfattning, struktur, tillväxt och drivkrafter

– Analys av leverantörer, relevanta nyckeltal, varningssignaler

– Kriterier för urval, Marknadsbevakning

– Nätverk av kontakter, Olika samverkansformer: Onsite, Offsite, Blended

– SmartSourcing Modellen

• Block 2 Business Case, Mia Nilsson– Projekt, dedikerat team eller BPO?

– Din kärnverksamhet

– Vad är lämpligt att lägga på offshore?

– Planering, kalkylering och budgetering av offshore-projekt

– Vad är en bra affär? Kort och lång sikt? Break-even och ROI

– Intellektuella och kommersiella rättigheter

– Säkerhet

– Riskanalys: Finansiellt, legalt och verksamhetsmässigt

– Hur ett business case sammanställs, presenteras och säljs in

Utformning av kursen

• Block 3 Offshore & Kommunikation, Per Dahl– Trender

– Kommunikation som stärker ditt varumärke

– Den kulturella kontextens inverkan på de kommunikativa utmaningarna

– Förändringskommunikation

– Ledningens och organisationens mognad och öppenhet

– Vilka är skillnaderna, utmaningarna och det gemensamma med vanliga Offshoring-länder ?

– Vem driver ditt förändringsarbete? Ledning eller nedifrån?

– Hur du lär dig att kommunicera och coacha internt så väl som offshore– Hur du lär dig att kommunicera och coacha internt så väl som offshore

– Utmaningar för din egen organisation

– Lära och träna din egen organisation

• Block 4 A central offshoring organization withinIT organization with responsibility for, Rita Fernandes

– Sourcing strategy

– Change management

– Vendor management

– Infrastructure

– SLA & KPI

– Mentorship

– Processes, routines, best practices and lessons learned

Utformning av kursen• Block 5 Projektstyrning, Johan Olander

– Projektmetoder som fungerar

– Arbetsprocesser

– Agile offshore – utmaningen

– Direkt ledning av team

– Koordinering av många inblandade parter

– Kommunikationsverktyg: Från MSN, Skype, e-mail till fullvärdiga videokonferenssystem

– Ticketsystem, versionshantering samt acceptanstest

– Offshoring Governance Model

– Audits och leverans-KIP:er– Audits och leverans-KIP:er

• Block 6 Juridik, Konflikthantering och Examinering, Jurist och Daniel Palm– Vad kan gå snett och varför?

– Jurisdiska system, lagrum och praxis

– Tidiga varningssignaler

– Hantera utmaningarna i tid

– Förebygga och hantera rättsliga efterspel

– Avslut och avveckling av offshore-projekt

– Att ta offshoring av projekt till nästa nivå med dedikerade team , BPO och BOT

– Presentationer av grupparbeten

– Examination och certifiering

En Certifierad Offshore Manager kan:1. identifiera och analysera lämpliga projekt, funktioner och processer för offshoring

och outsourcing

2. överblicka och omvärldsbevaka marknaden för outsourcing och offshoring

3. analysera och utvärdera leverantörer på denna marknad

4. ta fram och presentera business case som redovisar affärsnyttan

5. analysera och bedöma risker

6. förstå andra kulturer och kommunicera med uppdragstagare i främmande länder6. förstå andra kulturer och kommunicera med uppdragstagare i främmande länder

7. förhandla och upphandla ett offshore-uppdrag, med komplexa pris- och

affärsmodeller

8. tolka avtal för upphandling

9. hantera praktiska aspekter kring personalfrågor

10. leda offshore-projekt, med rätt projektmodeller och verktyg

11. identifiera varningssignaler för problem och hantera konflikter

12. lyfta offshoring till nästa nivå med dedikerade teams, outsourcing av processer

eller funktioner samt hantering av business operation transfer

Erbjudande till kurs deltagare

• De 12 st första som anmäler sig till kursen

kommer att få tillgång till en Offshore Virituell

Assistent under 40 timmar – Gratis

• Om intresse föreligger:

– Studieresa till Offshore land/länder 2012

offshoring frukostseminarium 20110831

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