Towards Sourcing Excellence

Transcription

1 The Global Sourcing Standard Towards Sourcing Excellence Software Engineering Competence Center

2 Agenda Introduction The Global sourcing standard overview The Global sourcing standard lifecycle The Global sourcing standard accreditation The Global sourcing standard and others

3 Introduction

4 BUZZWORDS Sourcing ITO Global Sourcing KPO Outsourcing BPO

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6 IT Outsourcing Spend

7 Revenue forecast

8 Egypt: Where are we? - Regionally

9 Egypt: Where are we? - Globally

10 Be part of this business

11 Outsourcing The reasons Reduce and control operating costs. Improve company focus. Gain access to exceptional capabilities. Free internal resources for other purposes. Resources are not available internally. Function difficult to manage or out of control. Make capital funds available. Reduce Risk.

12 Outsourcing If? Assets required by the activity are highly specialized and will be idle if that activity is no longer performed. The activity is infrequent or sporadic. The activity is simple, routine and stable over time with few changes.

13 Outsourcing If? It is not hard to measure good performance. It is not tightly coupled with other activities in the business and separating it won t increase complexity and won t cause problems of coordination.

14 Outsourcing Top Risks Some IT functions are not easily outsourced. Control may be lost. Employee morale may be affected. You may get "locked in." Possible loss of quality

15 The Global Sourcing Standard Overview

16 GSA History Previously known as NOA (The National Outsourcing Association) In 2016, the NOA rebranded itself as the Global Sourcing Association (GSA) to reflect the international reach of the group and to respond to growing requests from foreign destinations for market support.

17 The Global Sourcing Standard A non-prescriptive model designed for sourcing practitioners to validate/develop their own approaches to sourcing strategy. Developed to be used by outsourcing buyers and suppliers. Includes references to the requirements of the public sector where particular regulatory procurement rules apply. It is not only concerned with outsourcing. For example: bringing back outsourced services in-house applies.

18 Core Principles Integrated Approach Relationships Alignment Governance

19 Practical Guidance 1. Senior management accountability. 2. Oversight and control 3. Initial and ongoing due-diligence 4. Monitoring by supervising authorities 5. Exit strategies and BCP 6. Flexibility 7. Risk Management 8. Data protection 9. Contractual arrangements

20 Structure of the standard The standard adapts lifecycle approach, starting from initial strategic discussions to the final termination of the sourcing arrangement. Sourcing process is not linear, feedback loops are considered in the lifecycle. Standard covers both buyer and supplier activities

21 The Global Sourcing Standard Lifecycle

22 Sourcing lifecycle Strategic leadership Relationship engagement Transition and change Relationship & service management

23 Strategic leadership phase Strategic leadership phase doesn t only instigate the initiatives, it is continuing process that drives and directs the initiative from both buyer\supplier sides. It is not only buyer-side, supplier also make strategic decisions (whether to engage\continue through a bid process)

24 Strategic leadership phase Feedback loops indicate that senior managers direct and drive the progress of other phases based on inputs received from lifecycle.

25 Relationship Engagement phase Concerned by the activities - by all parties - to establish and formalize the relationship. Instigated by the buyer, referred to as vendor\supplier process selection

26 Relationship Engagement phase Suppliers have a stake to decide whether to enter or not. Thinking of the phase as engagement encourages collaborative culture

27 Transition and change phase A service will move from one party to another, this is called transition and this requires change. Experienced suppliers shall have effective\efficient transition planning process and skilled team to execute.

28 Transition and change phase Some transition projects will be simpler than others. Whatever the nature of transition process, change (process, platform, policies, service & culture) must be effectively managed.

29 Relationship & service management phase Concerned with managing the service once it s established. This may last many years. The benefits of the arrangement are realized at this phase. The term relationship is used to emphasize the importance of having successful relationship between parties.

30 Relationship & service management phase Effective communication, facilitation skills and issue management are key competencies. Required skills include data analysis, change control, exit planning, contract management, performance monitoring and stakeholders management.

31 The Global Sourcing Standard Accreditation

32 Steps for corporate accreditation 1. Sourcing Lifecycle Assessment Level Accreditation Readiness Assessment 3. Performance Improvement Program 4. GSA Accreditation Audit

33 The global sourcing standard and others

34 Other related models\standards CMMI- ACQ CMMI- DEV CMMI- SVC ITIL COBIT ISO 37500

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