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Transformational Outsourcing
        Maximize Value from IT Outsourcing




A Services Approach to Manage IT Outsourcing
             Author: Sanjay Chadha
IT Departments are Transforming fast……

 •   The age of slow, steady success is over; we stand in era of transformation.

 •   Rapid change is shifting IT objectives and business strategies.

 •   CIO is under budget pressure to deliver services that can improve the gross margin
     of the company.

 •   Focus is on getting better - Centralization, Consolidation, Elimination,
     Rationalization, Improvement, Standardization, Transformation, Revolution,
     Globalization themes are mainstream today.

 •   IT and Business Integration is accelerating as companies look for speed, flexibility
     and better efficiencies.

 •   Outsourcing continues to be one of the strategic lever for the CIO to deliver to
     business objectives.


      Outsourcing Will Continue to Gain Increasing Acceptance. Outsourcing
                Management is Emerging as a Key Differentiator.
Investments in Outsourcing Competencies is Critical…..

     Most Outsourcing Initiatives Fail to Deliver Expected Value
 • How do you maximize value and bring forward sustainable enterprise
   improvements from outsourcing initiatives?
 • How do you Integrate outsourcing with business of the organization?
 • How do you calibrate the pace of transformation while balancing your
   company culture, operating model and business objectives?
 • How do you assess the complexity and take a structured approach to
   achieving the outsourcing goals?
 • How do we maximize success and balance that with the Myth of Excellence.




    Creating a meaningful, sustainable and high value outsourcing impact will
   require enterprises to evolve matured outsourcing capabilities, services and
      processes. These would need to be extended to clients and providers.
Outsourcing Management can be run as a Service (OMAS)……

• Outsourcing Management can be run
  as a service that integrates the core
  skills in area of Program
  Management, Service Management
  and Vendor Management.




• Building outsourcing capabilities,
  Services and Processes is core to
  deriving the maximum value from
  outsourcing initiative.


   Evolving core capabilities and services will be critical to enable the vendors
                        deliver to outsourcing objectives.
The Outsourcing Services Framework enables OMAS…….
 • Transformational Outsourcing shares an integrated view and
   roadmap of 30 capabilities, underlying services and processes, that
   organizations need to mature to maximize outsourcing value.




  A Flexible and Sustainable Framework that adapts with the pace and degree
                      of transformational change needed.
Transformational Outsourcing is a must read for IT personnel


  • Innovative services based approach and practical insights into
    implementing outsourcing strategy, core capabilities and their strategic
    alignment with business.

  • Written for novice as well as experienced buyers and service providers.

  • Guides IT professionals to simplify application of outsourcing - improving
    accountability across outsourcing value chain, and improving benefits.

  • Provide easy to understand tools, techniques, and best practices to
    manage outsourcing programs and provider relationships.

  • Improve service focus for outsourcing programs by enhancing
    productivity, reliability, responsiveness, competency, and maturity.

  • Guide for providers to position themselves as trusted advisors.
About The Author
 Sanjay Chadha is an IT sourcing expert and currently manages the Global Sourcing Office
 and strategic offshore provider relationships for a large financial services company in
 Southern California, USA. In the past, Sanjay has also worked for leading service
 provider organizations in financial services, technology and healthcare industries.
 Sanjay has strong leadership experience in areas of IT Outsourcing (ITO) and Business Process Outsourcing
 (BPO). His expertise areas include planning and implementation of sourcing strategy, business case,
 governance, negotiation of complex contracts and set up and management of program office (PMO).

 Sanjay has led complex outsourcing transformations that required large-scale transition and optimization of
 steady state operations. He brings forward extensive hands-on experience with several capabilities required
 to manage outsourcing. He has a proven record of accomplishment of streamlining processes, reducing Total
 Cost of Ownership (TCO) and delivering superior outsourcing value and performance.

 Sanjay’s experience also includes set-up of vendor management offices, contingent workforce offices, vendor
 consolidation, and vendor transitions, in sourcing, domestic sourcing, expense management, purchasing, and
 leading vendor risk management audits. Sanjay is also an expert with leveraging outsourcing standards and
 frameworks in context of outsourcing needs.

 Sanjay received Masters of Science (Quantitative Analysis) and Masters in Business Administration
 (Marketing & Information Systems) degrees from University of Cincinnati, USA and a Bachelor of Engineering
 (Mechanical) degree from University of Rajasthan, India. Sanjay is a Certified Outsourcing Professional, COP,
 Certified ITIL Foundation and professional member of IAOP. He is also a regular columnist for the Outsource
 Magazine, a publication of EMP Plc, UK.
Transformational outsourcing (Book Introduction)

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Transformational outsourcing (Book Introduction)

  • 1. Transformational Outsourcing Maximize Value from IT Outsourcing A Services Approach to Manage IT Outsourcing Author: Sanjay Chadha
  • 2. IT Departments are Transforming fast…… • The age of slow, steady success is over; we stand in era of transformation. • Rapid change is shifting IT objectives and business strategies. • CIO is under budget pressure to deliver services that can improve the gross margin of the company. • Focus is on getting better - Centralization, Consolidation, Elimination, Rationalization, Improvement, Standardization, Transformation, Revolution, Globalization themes are mainstream today. • IT and Business Integration is accelerating as companies look for speed, flexibility and better efficiencies. • Outsourcing continues to be one of the strategic lever for the CIO to deliver to business objectives. Outsourcing Will Continue to Gain Increasing Acceptance. Outsourcing Management is Emerging as a Key Differentiator.
  • 3. Investments in Outsourcing Competencies is Critical….. Most Outsourcing Initiatives Fail to Deliver Expected Value • How do you maximize value and bring forward sustainable enterprise improvements from outsourcing initiatives? • How do you Integrate outsourcing with business of the organization? • How do you calibrate the pace of transformation while balancing your company culture, operating model and business objectives? • How do you assess the complexity and take a structured approach to achieving the outsourcing goals? • How do we maximize success and balance that with the Myth of Excellence. Creating a meaningful, sustainable and high value outsourcing impact will require enterprises to evolve matured outsourcing capabilities, services and processes. These would need to be extended to clients and providers.
  • 4. Outsourcing Management can be run as a Service (OMAS)…… • Outsourcing Management can be run as a service that integrates the core skills in area of Program Management, Service Management and Vendor Management. • Building outsourcing capabilities, Services and Processes is core to deriving the maximum value from outsourcing initiative. Evolving core capabilities and services will be critical to enable the vendors deliver to outsourcing objectives.
  • 5. The Outsourcing Services Framework enables OMAS……. • Transformational Outsourcing shares an integrated view and roadmap of 30 capabilities, underlying services and processes, that organizations need to mature to maximize outsourcing value. A Flexible and Sustainable Framework that adapts with the pace and degree of transformational change needed.
  • 6. Transformational Outsourcing is a must read for IT personnel • Innovative services based approach and practical insights into implementing outsourcing strategy, core capabilities and their strategic alignment with business. • Written for novice as well as experienced buyers and service providers. • Guides IT professionals to simplify application of outsourcing - improving accountability across outsourcing value chain, and improving benefits. • Provide easy to understand tools, techniques, and best practices to manage outsourcing programs and provider relationships. • Improve service focus for outsourcing programs by enhancing productivity, reliability, responsiveness, competency, and maturity. • Guide for providers to position themselves as trusted advisors.
  • 7. About The Author Sanjay Chadha is an IT sourcing expert and currently manages the Global Sourcing Office and strategic offshore provider relationships for a large financial services company in Southern California, USA. In the past, Sanjay has also worked for leading service provider organizations in financial services, technology and healthcare industries. Sanjay has strong leadership experience in areas of IT Outsourcing (ITO) and Business Process Outsourcing (BPO). His expertise areas include planning and implementation of sourcing strategy, business case, governance, negotiation of complex contracts and set up and management of program office (PMO). Sanjay has led complex outsourcing transformations that required large-scale transition and optimization of steady state operations. He brings forward extensive hands-on experience with several capabilities required to manage outsourcing. He has a proven record of accomplishment of streamlining processes, reducing Total Cost of Ownership (TCO) and delivering superior outsourcing value and performance. Sanjay’s experience also includes set-up of vendor management offices, contingent workforce offices, vendor consolidation, and vendor transitions, in sourcing, domestic sourcing, expense management, purchasing, and leading vendor risk management audits. Sanjay is also an expert with leveraging outsourcing standards and frameworks in context of outsourcing needs. Sanjay received Masters of Science (Quantitative Analysis) and Masters in Business Administration (Marketing & Information Systems) degrees from University of Cincinnati, USA and a Bachelor of Engineering (Mechanical) degree from University of Rajasthan, India. Sanjay is a Certified Outsourcing Professional, COP, Certified ITIL Foundation and professional member of IAOP. He is also a regular columnist for the Outsource Magazine, a publication of EMP Plc, UK.