Download - 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
• 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
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
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
• 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
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
• 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
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.
10 Reasons Why Offshore Outsourcing Projects Fail, and How to Avoid Making the Same Mistakes
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.
10 Reasons Why Offshore Outsourcing Projects Fail, and How to Avoid Making the Same Mistakes
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
• 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
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
• 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
Live conference with BTCG Islamabad
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
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