database support outsourcing worst practices – avoiding a recipe for disaster
DESCRIPTION
Database Support Outsourcing Worst Practices – Avoiding a Recipe for Disasterby Martin WisniewskiTRANSCRIPT
![Page 1: Database Support Outsourcing Worst Practices – Avoiding a Recipe for Disaster](https://reader036.vdocuments.site/reader036/viewer/2022070315/55524e72b4c905954f8b4f40/html5/thumbnails/1.jpg)
1
Worst Practicesof IT
OutsourcingMartin Wisniewski
+61 414 841 901
August 17, 20101
![Page 2: Database Support Outsourcing Worst Practices – Avoiding a Recipe for Disaster](https://reader036.vdocuments.site/reader036/viewer/2022070315/55524e72b4c905954f8b4f40/html5/thumbnails/2.jpg)
2 © 2009/2010 Pythian
Martin Wisniewski
2
•Director Business Relations, Pythian Australia (Asia-Pac)
•17 years in the IT industry•Responsible for Pythian Sales and Service Delivery of database, systems, applications infrastructure and architecture work for more than five 5 years across 3 continents
![Page 3: Database Support Outsourcing Worst Practices – Avoiding a Recipe for Disaster](https://reader036.vdocuments.site/reader036/viewer/2022070315/55524e72b4c905954f8b4f40/html5/thumbnails/3.jpg)
© 2009/2010 Pythian
About Pythian
3
•Recognized Leader:• Global industry-leader in database infrastructure services for Oracle, Oracle Applications, MySQL and SQL Server• 350 clients worldwide including Forbes.com, Mitsubishi (CFA) and Harvard (BSP) for whom we help to manage day-to-day operations and complex IT deployments
• Expertise:• One of the most experienced/advanced technology certified/full-time dedicated concentrations of DBAs
• Global Reach & Scalability:• 24x7x52 global remote database administration, systems administration, consulting, special projects and emergency support
![Page 4: Database Support Outsourcing Worst Practices – Avoiding a Recipe for Disaster](https://reader036.vdocuments.site/reader036/viewer/2022070315/55524e72b4c905954f8b4f40/html5/thumbnails/4.jpg)
4 © 2009/2010 Pythian
Why Talk Database Outsourcing Now?
4
Database Support Outsourcing
![Page 5: Database Support Outsourcing Worst Practices – Avoiding a Recipe for Disaster](https://reader036.vdocuments.site/reader036/viewer/2022070315/55524e72b4c905954f8b4f40/html5/thumbnails/5.jpg)
5 © 2009/2010 Pythian
Worst Practice #1Not Evaluating Vendor Landscape
5
Getting caught up
in the romance
![Page 6: Database Support Outsourcing Worst Practices – Avoiding a Recipe for Disaster](https://reader036.vdocuments.site/reader036/viewer/2022070315/55524e72b4c905954f8b4f40/html5/thumbnails/6.jpg)
6 © 2009/2010 Pythian
Worst Practice #1Not Evaluating Vendor Landscape
6
Relying only on the
known brand
![Page 7: Database Support Outsourcing Worst Practices – Avoiding a Recipe for Disaster](https://reader036.vdocuments.site/reader036/viewer/2022070315/55524e72b4c905954f8b4f40/html5/thumbnails/7.jpg)
7 © 2009/2010 Pythian
Worst Practice #1Not Evaluating Vendor Landscape
7
Sole sourcin
g
![Page 8: Database Support Outsourcing Worst Practices – Avoiding a Recipe for Disaster](https://reader036.vdocuments.site/reader036/viewer/2022070315/55524e72b4c905954f8b4f40/html5/thumbnails/8.jpg)
8 © 2009/2010 Pythian
Worst Practice # 2Use Immediate Cost Savings as the Sole Driver
8
Let’s fly him across the globe and save $$ on
the surgery!
![Page 9: Database Support Outsourcing Worst Practices – Avoiding a Recipe for Disaster](https://reader036.vdocuments.site/reader036/viewer/2022070315/55524e72b4c905954f8b4f40/html5/thumbnails/9.jpg)
9 © 2009/2010 Pythian
Worst Practice # 2Use Immediate Cost Savings as the Sole Driver
9
Is your database the key
asset of the business?
![Page 10: Database Support Outsourcing Worst Practices – Avoiding a Recipe for Disaster](https://reader036.vdocuments.site/reader036/viewer/2022070315/55524e72b4c905954f8b4f40/html5/thumbnails/10.jpg)
10 © 2009/2010 Pythian
Worst Practice # 3Ignore Vendor Capabilities and ...
10
Dinner?
![Page 11: Database Support Outsourcing Worst Practices – Avoiding a Recipe for Disaster](https://reader036.vdocuments.site/reader036/viewer/2022070315/55524e72b4c905954f8b4f40/html5/thumbnails/11.jpg)
11 © 2009/2010 Pythian
Worst Practice # 3Ignore Vendor Capabilities and Cost Model
11
•What are vendor’s costs?
•How do they make their money?• Taking over risk
• Labor arbitrage
• Minimizing efforts
• Do as little as possible for the same spend
• Maximizing customer spend
• Do as much as possible and charge per hour
![Page 12: Database Support Outsourcing Worst Practices – Avoiding a Recipe for Disaster](https://reader036.vdocuments.site/reader036/viewer/2022070315/55524e72b4c905954f8b4f40/html5/thumbnails/12.jpg)
Worst Practice # 4Trying To Cheat Your Vendor
12 © 2009/2010 Pythian12
It’s extremely
rare to get a vendor into
an unfavorable
contract
![Page 13: Database Support Outsourcing Worst Practices – Avoiding a Recipe for Disaster](https://reader036.vdocuments.site/reader036/viewer/2022070315/55524e72b4c905954f8b4f40/html5/thumbnails/13.jpg)
13 © 2009/2010 Pythian
Worst Practice # 4Trying To Cheat Your Vendor
13
... and when youthought
you did...
![Page 14: Database Support Outsourcing Worst Practices – Avoiding a Recipe for Disaster](https://reader036.vdocuments.site/reader036/viewer/2022070315/55524e72b4c905954f8b4f40/html5/thumbnails/14.jpg)
14 © 2009/2010 Pythian
Worst Practice # 5Sign a Long Term Lock-In Contract
14
2005
2007
2009
Do you know what will happen two years from now?
2011
20??
![Page 15: Database Support Outsourcing Worst Practices – Avoiding a Recipe for Disaster](https://reader036.vdocuments.site/reader036/viewer/2022070315/55524e72b4c905954f8b4f40/html5/thumbnails/15.jpg)
15 © 2009/2010 Pythian15
Ensure innovation
s don’t happen!
Worst Practice # 5Sign a Long Term Lock-In Contract
![Page 16: Database Support Outsourcing Worst Practices – Avoiding a Recipe for Disaster](https://reader036.vdocuments.site/reader036/viewer/2022070315/55524e72b4c905954f8b4f40/html5/thumbnails/16.jpg)
16 © 2009/2010 Pythian16
Perceived cost savings
Vendor protected from abuse with strict SLA’s
Worst Practice # 5Sign a Long Term Lock-In Contract
![Page 17: Database Support Outsourcing Worst Practices – Avoiding a Recipe for Disaster](https://reader036.vdocuments.site/reader036/viewer/2022070315/55524e72b4c905954f8b4f40/html5/thumbnails/17.jpg)
17 © 2009/2010 Pythian
Worst Practice # 6No Visibility On Vendor’s Service Delivery
17
I don’t care how my
server room looks like as
long as service is up
![Page 18: Database Support Outsourcing Worst Practices – Avoiding a Recipe for Disaster](https://reader036.vdocuments.site/reader036/viewer/2022070315/55524e72b4c905954f8b4f40/html5/thumbnails/18.jpg)
18 © 2009/2010 Pythian
Worst Practice # 7Outsource Key Internal Expertise
18
•Complete outsourcing• more perceived savings
• No IT distractions
• Focus exclusively on business
•Result:• Unable to measure vendor performance
![Page 19: Database Support Outsourcing Worst Practices – Avoiding a Recipe for Disaster](https://reader036.vdocuments.site/reader036/viewer/2022070315/55524e72b4c905954f8b4f40/html5/thumbnails/19.jpg)
19 © 2009/2010 Pythian
Worst Practice # 8No Executive Visibility On The Initiative
19
In-house team will undermine
the vendor if they are concerned for
their jobs
![Page 20: Database Support Outsourcing Worst Practices – Avoiding a Recipe for Disaster](https://reader036.vdocuments.site/reader036/viewer/2022070315/55524e72b4c905954f8b4f40/html5/thumbnails/20.jpg)
20 © 2009/2010 Pythian
Worst Practice # 11No Executive Visibility On The Initiative
20
Black Box vs.
Visibility and
Control
![Page 21: Database Support Outsourcing Worst Practices – Avoiding a Recipe for Disaster](https://reader036.vdocuments.site/reader036/viewer/2022070315/55524e72b4c905954f8b4f40/html5/thumbnails/21.jpg)
21 © 2009/2010 Pythian
Worst Practice # 9Draw Restrictive Lines of Responsibility
•Ensure collaboration cannot happen
•Your team vs. my team
•Blame-storms
21
![Page 22: Database Support Outsourcing Worst Practices – Avoiding a Recipe for Disaster](https://reader036.vdocuments.site/reader036/viewer/2022070315/55524e72b4c905954f8b4f40/html5/thumbnails/22.jpg)
22 © 2009/2010 Pythian
Worst Practice # 9Draw Restrictive Lines of Responsibility
22
Adopt Antagonistic Relationships
![Page 23: Database Support Outsourcing Worst Practices – Avoiding a Recipe for Disaster](https://reader036.vdocuments.site/reader036/viewer/2022070315/55524e72b4c905954f8b4f40/html5/thumbnails/23.jpg)
23 © 2009/2010 Pythian
Worst Practice # 10Meeting SLA ≠ Customer Satisfaction
•SLA’s met but customer dissatisfied• Customer contractually obligated to be “happy”
•SLA violation discounts must be material• Dead business doesn’t need 10% discount
•“Vendor will be doing a great job if ___________”• Clarity on all levels in the org
23
![Page 24: Database Support Outsourcing Worst Practices – Avoiding a Recipe for Disaster](https://reader036.vdocuments.site/reader036/viewer/2022070315/55524e72b4c905954f8b4f40/html5/thumbnails/24.jpg)
24 © 2009/2010 Pythian
Worst Practice # 11Avoid Multi-Sourcing
•Why multi-source?
•Performance-based procurement
•React quickly on service quality issues
•Find the right balance between suppliers and in-house team
24
![Page 25: Database Support Outsourcing Worst Practices – Avoiding a Recipe for Disaster](https://reader036.vdocuments.site/reader036/viewer/2022070315/55524e72b4c905954f8b4f40/html5/thumbnails/25.jpg)
25 © 2009/2010 Pythian
Worst Practice # 12Ignore Alternative Service Models
25
Utility based /Linear cost to efforts
Fixed price /Fixed scope
Value based
![Page 26: Database Support Outsourcing Worst Practices – Avoiding a Recipe for Disaster](https://reader036.vdocuments.site/reader036/viewer/2022070315/55524e72b4c905954f8b4f40/html5/thumbnails/26.jpg)
26 © 2009/2010 Pythian26
Best PracticesVendor Selection Process
• Goals & measurement: the 10% floor
1.Assess spend & supply market
2.Identify suitable suppliers
3.Facilitate selection
4.Negotiate with vendor
5.Partner with vendor to implement new supply structure
6.Measure results, rinse & repeat
![Page 27: Database Support Outsourcing Worst Practices – Avoiding a Recipe for Disaster](https://reader036.vdocuments.site/reader036/viewer/2022070315/55524e72b4c905954f8b4f40/html5/thumbnails/27.jpg)
27 © 2009/2010 Pythian
Best PracticesVendor Selection Criteria
• Five C’s of Cultural fit• Continuous improvement
• Cross-functional teaming
• Consistent reasoning
• Collaboration - transparency, knowledge and information sharing
• Commitment & responsiveness
• Business model & profit model• Evaluation of subject matter excellence• Collaboration - supply management, engineering, and executives
27
![Page 28: Database Support Outsourcing Worst Practices – Avoiding a Recipe for Disaster](https://reader036.vdocuments.site/reader036/viewer/2022070315/55524e72b4c905954f8b4f40/html5/thumbnails/28.jpg)
28 © 2009/2010 Pythian
Best PracticesVendor Collaboration
• Leverage vendor expertise & experience• Collaborate on new initiatives• Innovate together• Co-invest together• Target, achieve & claim savings• Promote knowledge-sharing networks• Executive visibility• Review SLA’s regularly
28
![Page 29: Database Support Outsourcing Worst Practices – Avoiding a Recipe for Disaster](https://reader036.vdocuments.site/reader036/viewer/2022070315/55524e72b4c905954f8b4f40/html5/thumbnails/29.jpg)
29 © 2009/2010 Pythian
Best PracticesVendor Oversight
• Monitor Performance and Quality• Aim for outstanding, intervene at excellent
• Maintain in-house expertise
• Take responsibility for making and keeping your supplier outstanding
• Maintain business-level knowledge of your supplier
• Maintain control of the design• Maintain control of the suppliers• Multi-sourcing• Control the new product development process
29
![Page 30: Database Support Outsourcing Worst Practices – Avoiding a Recipe for Disaster](https://reader036.vdocuments.site/reader036/viewer/2022070315/55524e72b4c905954f8b4f40/html5/thumbnails/30.jpg)
© 2009/2010 Pythian
Thank You
30
Questions, Comments, Feedback?
Martin [email protected]
Twitter: @pythian
Visit: http://www.pythian.com
Tell us what you think…
http://feedback.insync10.com.au