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The A to Z of Outsourcing

White Paper | Category:   Strategy & Business Case  IT Infrastructure & Applications  Outsourcing

Outsourcing has attracted a lot of attention over the past few years. At times, the logistics of outsourcing can seem complex but, the basic idea of outsourcing is of course very simple – reap the benefits of having a specialist do a specific job for less money than it would cost for you to do it yourself. However, when it comes time to setting up the right outsourcing agreement, you may be overwhelmed with the complex and bewildering array of outsourcing terms and jargon.

As a result, we at Alsbridge wrote this outsourcing guide to help anyone involved in outsourcing understand the main terminology. The "A to Z of Outsourcing" isn't intended to be an exhaustive manual, but rather it is a guide to help you understand common outsourcing terms and concepts. If you don't know your ARC's from your Earnback, this outsourcing overview is definitely for you.

We've tried to make this outsourcing guide comprehensive without creating an encyclopedia. However if there's anything you would like to know which isn't included, or which isn't clear, feel free to contact ALsbridge, we'd be delighted to hear from you. Our goal is to make understanding outsourcing as easy and simple as possible so you can gain the most benefit from your deals.

The Role of Benchmarking in Outsourcing

White Paper | Category:   Benchmarking  IT Infrastructure & Applications  Business Processes...

With increasing economic uncertainty comes increasing pressure to evaluate and make the most of your outsourcing options, both from a business and an information technology perspective.

More and more benchmarking is becoming recognized as a management discipline for driving external cost-efficiency and ensuring benefits from sourcing operational activities are delivered to efficient, or specialized providers.

This white paper discusses how benchmarking can be an effective tool in an environment where requirements are constantly changing, returns are required sooner rather than later and there are ever more options for selective sourcing.

Contract Renegotiation: Timing is Everything

White Paper | Category:   Negotiations / Renegotiations  Benchmarking  IT Infrastructure & Applications...

The consequences to a buyer company that fails to renegotiate certain provisions of its outsourcing contract at the right time can be devastating. Right now is the right time for many organizations.

As the outsourcing services market continues to undergo significant changes in service provider mix, technological advances, and price drops, more and more outsourcing buyers are entering into the contract renegotiation process wholly unprepared. As a result, many leave significant financial savings on the table and/or structure sub-optimal deals that don’t adequately serve their needs or deliver real value.

Contract renegotiation is not a cure-all for all outsourcing ills and is not a replacement for maintaining a healthy relationship with your service provider. At the end of the day, both sides of the table are looking for a positive outcome and a relationship that delivers value. However, understanding how and when to renegotiate your outsourcing agreement and then taking the time to prepare for your renegotiation is fundamental to success. Start early to make time your asset, not your enemy.

Demand Management - How to Align Stakeholders and Deliver on Promises

White Paper | Category:   Transition & Governance  IT Infrastructure & Applications  Finance & Accounting Services...

Demand management is not a new discipline. A clear understanding of labor, materials and service requirements is essential in order to have predictable delivery of any finished product. Traditional manufacturing businesses have had this process down pat for over 100 years. Information Technology (IT) organizations have employed variations of formal demand management methods since the 1960’s. IT organizations today have well-structured processes focused on prioritized expenditures, key resources and satisfied customers. In the last decade, sophisticated applications have hit the market containing logic that "understands" the dynamics of multi-source demand, business prioritization, budget accountability and the resource management necessary to get the work done. One of the first and most important steps to implementing a demand management structure with built-in accountability is establishing a process and tool to monitor, adjust, and govern the decisions surrounding how to best satisfy the inflow of new requests for service.

A demand planning model is designed to serve as a macro-level demand reporting and planning tool. A typical demand planning model is comprised of three key work categories, including: strategic initiatives, discretionary projects, and operational "run" activities, delivered internally or through an outsourcing arrangement. The overall goal is to establish an annual plan with an appropriate workforce mix and resource pyramid to meet investment objectives. On a monthly basis, creating a view into resource consumption allows a comparison to the planned year-to-date investment plan.

The objectives of demand management and the detailed planning processes that enable it are focused on managing the collection, prioritization and approval for new IT services and service upgrades. Operational service organizations are the delivery units for the approved demand and thus play a crucial role in the overall success of a demand management solution. As soon as both sides of the business request cycle are aligned around managing demand within approved budgets, resource constraints and committed timelines, the world of IT becomes a less stressful, more predictable place for customers and delivery teams alike. The objectives of demand management and the detailed planning processes that enable it are focused on managing the collection, prioritization and approval for new IT services and service upgrades. Operational service organizations are the delivery units for the approved demand and thus play a crucial role in the overall success of a demand management solution.

This white paper discusses how to get both sides of the business request cycle aligned around managing demand within approved budgets, resource constraints and committed timelines, making the world of IT a less stressful, more predictable place for customers and delivery teams alike.

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