Successful Outsourcing
Course Programme
Duration
2 days.
What is this course about?
Outsourcing can be extremely valuable and the investment in making outsourcing work can be highly worthwhile and return the greatest benefits, not least in allowing the company to focus on what creates the greatest value.
Outsourcing is not, however, a panacea. The following considerations underpin this course:
- What can be outsourced
- Is it appropriate to outsource this particular process
- The numerous pitfalls - case studies of unsuccessful outsourcing contracts and common errors
- The continuing costs of outsourcing
- Control or lack of control
- Where will the company be in five years
- How much intellectual property is endangered by outsourcing - and what are those dangers
- What success looks like at procurement, one month, one quarter, one year and two years in
- Ending the contract and how to deal with early termination and termination at the end of the contract
By focusing on the different tasks that will fall to the company outsourcing the process or processes, we are able to highlight the many areas that may well remain hidden during the procurement phase. We equip our clients to deal with outsourcing from initial idea through to final implementation, from starting to finishing a contract.
Who would benefit?
- Senior managers
- HR managers
- Board members
Objectives
- Creating awareness of the range of issues that outsourcing can cover and how to develop strategies to deal with those issues
- Providing a framework for dealing with outsourcing from initial idea through to end of contract
- Handling suppliers - and the advantages and disadvantages of design, build, operate, transfer (DBOT)
- Providing a strong in house understanding of the opportunities and potential for disaster that outsourcing represents.
Key topics covered
- What outsourcing means in practice
- How to procure outsourcing
- How to manage the outsourcing during the contract
- Managing the contract
- Working together
Course programme
1. What can be and what shouldn't be outsourced - and how to come to the right decision
- Objectives of outsourcing
- Core and chore
- Proximity to value creation
- Process: the incredible shrinking core
- Key decision areas
2. When to outsource - rationalised or before rationalisation - and how to decide
- Different approaches and how to evaluate them
- Sharing the benefits
- Ensuring that core values are retained
3. Creating the business plan and business case, including hidden costs and benefits, opportunity costs, and assumptions that need to be made explicit:
- Objectives of the business plan and case
- What are the overt costs
- What are the hidden costs
- What overt benefits there are
- What hidden benefits may be realised
- How to create an opportunity cost matrix
- The role of assumptions - especially in reviewing business cases
4. Process mapping and development
- Objectives of the process mapping and development of the process maps
- How much detail and which areas
- Who does what and how to evaluate the results
- What are the training implications as they arise
- Understanding costs in detail
5. Training
- Objectives of the training
- Training requirements analysis
- Target trainees - not just the offshore or outsource team but internal training
- Training delivery plan - issues to consider
- Delivery - and how to time it
- Evaluating the training
6. The communication plan - to all stakeholders:
- Objectives of the communication plan
- Who needs to be communicated with
- What needs to be communicated
- When it needs to be communicated
- Evaluating the communication plan
7. TUPE and associated human resource issues
- What this means in practice
- How to deal with TUPE issues
8. Managing attrition in-house
- Objectives of managing attritionø
- Planned attrition
- Unplanned attrition
- Mitigating unplanned attrition
- Evaluating the attrition strategy
- What it means for retained staff in areas that will be considered for outsourcing in future and those areas that will not be considered for outsourcing in future
9. Procurement - and how to evaluate proposals
- Objectives of the procurement process
- How detailed and how much should be left to suppliers
- Time scales that should be allowed and pitfalls in timing
- Receiving proposals
- Evaluation - against fixed criteria or flexible criteria
- Long listing
- Short listing
- Selection: partner, supplier, joint venture, or design build, operate, transfer (DBOT)
- Negotiation and what to aim for
10. Creating the longer term partnership - if appropriate
- Creating the right relationship
- Maintaining and developing the relationship
- Pitfalls in each approachø
- Best practice in managing partnerships for highest value
- Win win in relationship management
11. Implementation - best practice
- Understanding options
- Best practice
- Creating the best plan
- Managing implementation - hands on, monitoring, distanced
12. The exit clause
- Objectives of the exit clause in the contract
- Normal lengths of contract - and what they actually mean
- Key issues in ending a contract
- Developing a shared understanding of what will trigger an exit (both ways)
- Essential preparation to mitigate risk
- Why the exit clause should be kept under review contractually
13. Contract management - what to do and what not to do
- Objectives of contract management
- What it means in practice
- Management or monitoring
- Key short cuts
- How to evaluate the processø
14. Writing service level agreements - and keeping them under review
- Objectives of service level agreements
- What they should and shouldn't contain
- Why they should be formally reviewed and updated - and what that means
- How will you judge a successful set of service level agreements
- Best practice
15. Risk mitigation and issue resolution.
- The risks and how they might develop into issues
- Managing the risk register and the issues register
- How to mitigate risks cost effectively
- Security issues - data protection, non-disclosure, physical security, intellectual property rights - and maintaining correct ownership
- Other key issues to be aware of.
Course outcomes
1. Greater confidence in dealing with contractual issues
2. Greater confidence in dealing with the legal teams involved
3. Much more tightly focused contracts
4. Better understanding of what win-win actually means in practice
5. A better, stronger and more productive relationship between the contracting parties.
BACK TO...
Successful Outsourcing Homepage
