IT-outsourcing transformation
More and more companies are striving towards an increased focus on their core business process to cater for a financially stronger organization and company over time. The initial business process being outsourced was related to sub-processes far from strategic and tactical process. Today, every business process is in scope to be challenged based on value produced in comparison to cost levels and performance.
Within the outsourcing (contracted IT-services) area we have seen a dramatic increase in the market with clear trends where companies also partly or full outsource their IT-services. Examples are:
- Managed Services as Managed Client, Service Desk, Infrastructure, Network.
- The application stack moving rapidly to cloud from on-prem.
- Digitalization of internal processes adding more applications, IT-services performed by external parties and suppliers.
In the transformation it is important to ensure to have the right processes, tools, RACIE, job descriptions and templates to manage the internal as well as the external relationship.
Values
In the transformation we ensure to train and educate all involved parties in the agreed ways of working, ensuring the use of the agreed processes, methods, tools, RACIE’s etc. It is important for us that our clients are self-sufficient once the transformation is completed and do not have to rely on us.
We believe that the best way of learning and implementing new ways of working are done through hands-on work. We guide, support and show our customers how the work should be done, and we repeat this in several different outsourcing waves.
As a benefit from driving this transformation will provide you as our client with a substantial amount of reduced costs and increased internal performance.
Driving change takes time and one should be prepared for a long-term change management agenda running over 12-36 months depending on the size of the organization in mind.
Customer case
Client had a distributed purchasing organization and had decided to centralize the strategic purchasing into a group function supporting the group. Local purchasing would remain in the different countries but under the management of the group purchasing function.
The corporate IT-department did not receive the adequate support from IT-purchasing, old “services# remained and the customer had and out-dated service portfolio and a costly and not a proactive supplier base.
The cooperation and the trust between the two functions had to be restored and built up from the ground. Common practices and processes was developed / enhanced where roles and responsibilities needed to be anchored and documented clarifying how the cooperation would look in the future state.
Competence review and analysis to ensure the right skills and competence in the IT-purchasing organization to support a modern and forward leaning procurement function.
The project was challenged by deliver tangible savings of MSEK 300 using the different sourcing initiatives and waves. These sourcing waves was used to implement the processes and ways of working between IT and IT-purchasing.
Target set to over a period of three (3) years have established the new ways of working and the tangible savings where all purchases should be fact based and under competition.
The project was divided in four main phases:
| 1. As-Is | Define and document the current state of IT and Purchasing, spend, categories, competences, what works, what does not work, current problems in the organization, competence mapping etc |
| 2. To-Be | Define the future state, processes, responsibilities, ways of working, how shall the client work in the future state |
| 3. Enabling Projects | Projects to enhance white spots and improvements in the processes, tools and systems supporting IT and Purchasing |
| 4. Sourcing Waves | Release capital and deliver savings funding the initiative and improving the bottom line |
Targets and objectives was achieved and the monetary target was achieved with 100% more savings than anticipated through structured and implemented governance of the initiative.
This truly shows the importance and value of a solid and tight cooperation between IT and IT-purchasing where the cooperation rests on documented and agreed processes, ways of working, governance structure and knowing who does what and when.
