Transcript Outsourcing: reducing operational risk

Outsourcing: reducing operational risk
Adrian Amariei
CEO, Axonite
for ALB Conference 2006
Agenda
Today we will talk about:
The promise of outsourcing
Who does it and why
Selecting and managing an outsourcing partner
Our experience at Axonite: the sell, the good, and the bad, and still the good
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Current trends
Factors driving today’s business environment
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Standardization
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Increasing competition
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Ever-changing legislation
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Upturn in the economy
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Economic migration
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Demographic changes
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Social trends
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The Digital networked economy
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Why outsource?
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Non-responsive IT department missing delivery dates = lost market opportunities.
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Difficulties to catch up with Technology changes and innovation
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Shrinking IT CAPEX
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Own IT organization does not provide industry best practices and processes
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Multi-IT vendor environment = resources spent into managing contracts
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Need to focus on core business.
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Who does it and why
• Economies of scale and scope
• Arbitrage: labor, skills and infrastructure
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Outsourcing guidelines
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• Answer this: “why do you want to do it?”
• Consider any activity and processing that:
• Is rule based
• Is transactional
• Is repetitive
• Is not core
• Has high volumes
• You can measure properly
• Don’t touch Strategic differentiators
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Outsourcing guidelines
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Managing your outsourcer
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Pay attention to SLA
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Check regulations on the issue and outsourcer compliance
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Verify security of data transfers and processing
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Ask for referrals
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Check reaction time and quality to your requests
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My Experience at Axonite
• Axonite is about enabling the “real-time enterprise” with mobile messages.
• We bridge business processes to real people in 6 seconds.
• We connect Enterprise applications and databases to mobile phones.
• Challenges we encountered, despite clear value proposition:
• Enterprise pricing expected to be same as retail pricing.
• “I can do that too” and TCO
• Data quality
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How it works, actually
• Let's see a quick live demo.
• If you want to be part of it, please send a SMS with
command ‘N’ and your first name to: 0788 555 555
Example:
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‘N Gabi’
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Why is this outsourcing strategic, and “realtime”…… all at the same time??
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Performance Indicators Framework
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“If you can’t measure it – it doesn’t count” John Yard
Customer, Financial, Strategic
Customer
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Customer Satisfaction
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Self-service
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Completeness Response Rate
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Service Availability
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Performance Indicators Framework
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“If you can’t measure it – it doesn’t count” John Yard
Financial
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Call-Center OPEX
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Aging of accounts receivable
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Risk management
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Performance Indicators Framework
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“If you can’t measure it – it doesn’t count” John Yard
Strategic
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Business advancement in face of competition
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Time to market
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Innovation
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Continuous Improvement
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What’s next?
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It’s all about money in and money out. That is, PROFIT.
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Gain your independence – escape the prison named ‘license’
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You need to be agile in the market place – though times are ahead
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Have your next providers earn your money
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Go SaaS with some of your business processes.
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Quick review
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Trends:
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Increasing competition
•
Ever-changing legislation
•
Upturn in the economy
•
Demographic changes
•
Social trends
•
The Digital networked economy
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Quick review
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Why outsource?
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Non-responsive IT department = missing market opportunities.
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Difficulties to catch up with Technology changes and innovation.
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Shrinking IT CAPEX
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Own IT organization has natural limitations
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Need to focus on core business.
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Quick review
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OK, we outsource – IF…
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Is rule based
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Is transactional
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Is repetitive
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Has high volumes
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You can measure properly
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Adrian Amariei shall welcome your comments at
[email protected]
+40 21 323 94 63
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