Management for Professionals Strategic Outsourcing The Alchemy to Business Transformation in a Globally Converged World Bearbeitet von Bharat Vagadia 1. Auflage 2011. Buch. XXIII, 227 S. Hardcover ISBN 978 3 642 22208 5 Format (B x L): 15,5 x 23,5 cm Gewicht: 543 g schnell und portofrei erhältlich bei Die Online-Fachbuchhandlung beck-shop.de ist spezialisiert auf Fachbücher, insbesondere Recht, Steuern und Wirtschaft. Im Sortiment finden Sie alle Medien (Bücher, Zeitschriften, CDs, ebooks, etc.) aller Verlage. Ergänzt wird das Programm durch Services wie Neuerscheinungsdienst oder Zusammenstellungen von Büchern zu Sonderpreisen. Der Shop führt mehr als 8 Millionen Produkte.
Contents 1 Role of Strategic Sourcing in a Changing World... 1 1.1 Economic Drivers... 1 1.1.1 Challenging Times Leading to Changing Business Models and Practice... 2 1.1.2 Contrary Forces at Work... 2 1.1.3 All Eyes on Cost... 2 1.1.4 All Aboard... 3 1.1.5 Mixed Fortunes for the Outsourcing Industry... 4 1.1.6 Changing Commercial Models... 5 1.1.7 Getting it Right... 5 1.2 Take Aways... 6 2 Globalisation and Convergence: Drivers and Strategic Outsourcing... 7 2.1 Introduction... 7 2.2 Convergent World... 8 2.3 Raising Barriers to Globalisation and Convergence... 10 2.4 Adapting Businesses to Compete on a Global Level... 11 2.5 A Case in Point: The Rise of India... 16 2.6 Take Aways... 19 3 Social and Philosophical Considerations of Outsourcing... 21 3.1 Introduction... 21 3.2 Economic Consequences... 22 3.3 Social Consequences... 23 3.4 Separating the Spin from Reality... 24 3.5 Policy Implications... 24 3.6 Take Aways... 25 References.... 25 ix
x Contents 4 From Tactical to Strategic Outsourcing... 27 4.1 Introduction... 27 4.2 The Role of Relationships... 28 4.3 Information Technology Outsourcing and the Cloud... 31 4.3.1 Cloud Computing and IT Outsourcing... 31 4.3.2 Cloud Services... 32 4.3.3 The Challenges of Cloud Sourcing... 36 4.3.4 Cloud Vendors... 37 4.4 Business Process Outsourcing and Call Centres... 38 4.4.1 Defining BPO Services by Organisational Impact... 39 4.4.2 Drivers for Customer Service Outsourcing... 41 4.4.3 The Future of Call Centres... 43 4.5 Travel, Transport and Logistics Outsourcing.... 44 4.5.1 Drivers for Logistics Outsourcing... 44 4.6 Finance and Accounting Outsourcing... 45 4.6.1 Drivers for F&A outsourcing... 46 4.7 Human Resource and Recruitment Processing Outsourcing... 47 4.7.1 Drivers for HRO... 47 4.8 Knowledge Process Outsourcing... 48 4.8.1 Typical KPO Services... 49 4.8.2 Challenges in Knowledge Process Outsourcing... 50 4.9 Legal Process Outsourcing... 51 4.9.1 Drivers for LPO in Law Firms... 52 4.9.2 What Not to Outsource... 52 4.9.3 LSO Challenges... 52 4.9.4 Corporations Rather Than Legal Firms Driving LSO... 53 4.10 Take Aways... 54 5 Outsourcing Within Industry Verticals... 55 5.1 Banking Sector... 55 5.1.1 Banking Value Chain... 56 5.1.2 Outsourcing Drivers for Banking Sector... 57 5.2 Insurance Sector... 58 5.2.1 Insurance Sector Value Chain... 60 5.3 The Telecoms and Technology Sector... 62 5.3.1 Main Drivers for Outsourcing and Managed Services... 63 5.4 Public Sector... 67 5.4.1 A Means to Radically Transform Service Provision... 68 5.4.2 Evolving Generations of Outsourcing.... 69 5.4.3 The Drivers for Outsourcing in the Public Sector... 72 5.4.4 Public-Private Partnerships (PPP)... 73 5.4.5 Outsourcing Offshore Versus Onshore.... 73 5.4.6 A Closed Market for New Suppliers...... 74
Contents xi 5.5 Retail Sector... 74 5.5.1 Drivers... 75 5.5.2 Outsourcing Drivers not Just Focused on Cost... 75 5.5.3 The Need for an Integrated Contact Management Strategy... 75 5.5.4 Transforming Customer Service Cost Centres into Sales Centres... 76 5.5.5 The Need for Greater Pro-activity... 76 5.6 Charity Sector... 77 5.7 The SME Sector... 78 5.8 Take Aways... 79 References.... 80 6 Strategic Outsourcing: Risks, Rewards and Relationships... 81 6.1 Rewards... 81 6.2 Risks..... 84 6.2.1 Loss of Core Competence and Innovation Capability... 85 6.2.2 Cost Escalation... 86 6.2.3 Supply Market Risk... 86 6.2.4 Change Management Costs... 87 6.2.5 Selection, Contracting and Vendor Management... 87 6.2.6 Communication Challenges... 87 6.3 Relationships... 87 6.3.1 Knowledge Retention... 89 6.3.2 Trust... 89 6.4 Take Aways... 91 References.... 91 7 Sourcing Models... 93 7.1 Evolution of Sourcing Models... 93 7.2 Take Aways... 98 8 Strategic Outsourcing Decision Governance... 101 8.1 Introduction... 101 8.2 Decisions Driven by Consensus and Debate.... 107 8.3 Suggested Decision Process for Outsourcing.... 107 8.3.1 Defining the Objectives... 107 8.3.2 Outsource for the Right Reasons... 108 8.3.3 Using a Methodical Approach... 109 8.3.4 Engage with All Stakeholders... 109 8.3.5 Choosing the Right Relationship... 111 8.3.6 Negotiating a Robust Contract... 112 8.3.7 Use of Performance Incentives... 112 8.3.8 Establish a Relationship Governance Structure... 112 8.3.9 Establish a Relationship Management Function... 113 8.3.10 Managing Human and Communication Issues... 113
xii Contents 8.3.11 Single Versus Multi-Sourcing... 113 8.3.12 Understand the Vendors... 114 8.4 Take Aways... 115 9 Transition and Relationship Governance... 117 9.1 Introduction... 117 9.2 Managing the Soft Issues... 121 9.3 Governance and Relationship Management..... 123 9.4 Typical Governance Structures... 124 9.4.1 Joint Review Board (JRB)... 124 9.4.2 Service Management Team (SMT)... 126 9.4.3 The Operating Group/Service Delivery Team (OGSDT)... 126 9.5 Governance in Practice... 126 9.6 Role of the Legal Contract... 127 9.7 Service Level Agreements... 129 9.8 Take Aways... 131 References.... 131 10 Insights from Academic Research on Outsourcing... 133 10.1 Introduction... 133 10.1.1 Defining Outsourcing and Offshoring... 133 10.1.2 From Tactical to Strategic Outsourcing... 134 10.1.3 Empirical Studies Suggest Outsourcing can be a Risky Practice... 135 10.2 Outsourcing Rewards... 136 10.2.1 Better Focus on the Core Business.... 136 10.2.2 Cost Reduction... 136 10.2.3 Benefit from Supplier Investment and Innovation... 137 10.2.4 Increased Flexibility and Technology... 137 10.2.5 Gain Access to External Competencies... 137 10.3 Outsourcing Risks... 138 10.3.1 Strategic Risks... 138 10.3.2 Operational Risks... 139 10.3.3 Commercial Risks... 140 10.3.4 Human Resource (HR)/Communication Risks... 140 10.4 Outsourcing Models... 141 10.4.1 Agency Theory... 142 10.4.2 Transaction Cost Economics (TCE)... 142 10.4.3 Resource Based View (RBV)... 143 10.4.4 Dynamic Resource (Capability) Model (DRM)... 144 10.4.5 Incomplete Contract Theory... 144 10.4.6 Other Models... 145 10.5 Take Aways... 147 References.... 147
Contents xiii 11 Minimising Risk Through the Contract... 151 11.1 Introduction.... 151 11.2 Outcome Based Accounting Controls... 152 11.3 Appropriate Contractual Clauses... 152 11.4 Contract as an Enabler of Trust... 153 11.5 Take Aways.... 154 12 Minimising Risk Through Relationships... 155 12.1 Introduction... 155 12.2 Trust.... 155 12.2.1 Organisational Trust... 157 12.2.2 Group Trust... 157 12.2.3 Individual Trust... 157 12.2.4 Creating Institutional Mechanisms for Building Trust... 157 12.3 Control and Its Relationship to Trust... 158 12.4 Vendor Selection... 159 12.5 Service Level Agreements as a Means of Control... 163 12.6 Collaboration... 164 12.7 Relationship Management and Internal Knowledge Retention... 165 12.8 Necessity of Legal Contracts for Positive Trust Development... 168 12.9 Adaptation to Cultural Differences... 169 12.10 Knowledge Transfer... 169 12.11 Managing Distance and Communication Challenges... 170 12.12 Continuous Improvement... 170 12.13 Risk Minimisation in Practice... 171 12.14 Take Aways... 173 References.... 173 13 Offshoring Leaders, Laggards and Hopefuls... 175 13.1 Introduction... 175 13.2 Location Selection... 176 13.2.1 From Countries to Cities... 177 13.3 Criteria to Assess the Location Decision... 179 13.3.1 Factor Weightings... 179 13.3.2 Country Evaluation... 180 13.3.3 Relative Merits of each Location, Based on a Rational Analysis... 180 13.4 Effects of the Recent Political Unrest on Offshoring... 181 13.5 The Outsourcing Industry in Asia... 182 13.6 The Outsourcing Industry in India... 184 13.6.1 Infrastructure Challenges... 186 13.7 The Outsourcing Industry in China... 192 13.8 The Outsourcing Industry in Philippines... 193 13.9 The Outsourcing Industry in Europe... 194 13.10 The Outsourcing Industry in North America and Latin America... 195
xiv Contents 13.11 The Outsourcing Industry in Middle East and Africa... 196 13.12 Take Aways... 197 References.... 198 14 Managing Cultural Differences... 199 14.1 Introduction... 199 14.2 Cultural Influences on Management Style...... 200 14.3 Cultural Influences on Hierarchy... 201 14.4 Cultural Influences on Group Relationships and Motivations... 202 14.5 Cultural Influences on Negotiation Styles...... 202 14.6 Distinctions Blurring Between Cultural Dimensions... 202 14.7 Cultural Differences in Evidence... 203 14.8 Take Aways... 206 References.... 206 15 Implementing Successful Strategic Outsourcing Programmes... 207 15.1 The Eight Principles to Success... 207 15.2 Principle 1: Strong Yet Flexible Contracts..... 209 15.3 Principle 2: Effective Governance... 210 15.4 Principle 3: Effective Control and Monitoring... 211 15.5 Principle 4: Building Commitment and Mutual Dependence... 212 15.6 Principle 5: Ensuring Goal/Expectation Alignment... 213 15.7 Principle 6: Building Individual and Institutional Trust... 215 15.8 Principle 7: Managing Effective Collaboration and Knowledge Sharing... 215 15.9 Principle 8: Effective Communications... 216 15.10 A Summary of Strategic Outsourcing: Risks, Rewards and Relationships... 216 15.10.1 Don t Start at the End... 216 15.10.2 Establish What is Core... 218 15.10.3 Establish What Success Means...... 218 15.10.4 Measuring Success... 218 15.10.5 Making It Happen: Ever Had a Yearlong Migraine?... 219 15.10.6 The True Picture... 220 15.10.7 It s Not All Plain Sailing... 220 15.10.8 Impact on Strategy and Value Retention... 221 15.10.9 Don t Overlook the Challenges..... 221 15.10.10 Organisational Change... 221 15.10.11 Cultural Adaption... 222 15.10.12 Detailed Contractual Agreement... 222 15.10.13 Knowledgeable Resources... 222 References.... 222 Further Reading... 223