"Are you planning to outsource corporate tasks or structures to external providers? Use our template to visualize outsourcing processes and present the associated benefits such as cost-effectiveness, calculability, and time-saving performance. Our template includes graphics, graphs, and icons to professionally present your company’s outsourcing strategies. Download our Outsourcing PowerPoint Template http://www.presentationload.com/outsourcing-powerpoint-template.html Content: - a definition of the term outsourcing - difference between outsourcing and insourcing - the various types of outsourcing - strategies for implementation - outsourcing processes - planning phases - an example of IT outsourcing implementation - pros and cons - comparison of outsourcing providers - key performance indicators - crowdsourcing Your benefits: - ready-to-use slides with adjustable graphics - find the right type of outsourcing for your company - graphs to visualize your outsourcing measures - optimally plan all phases of the outsourcing process

1. PREMIUM POWERPOINT SLIDES
Outsourcing

2. OUTSOURCING
POWERPOINT TEMPLATE

3.  Introduction
 sourcing
 Processes
 Application
 Assessment
 crowdsourcing

4. Whether you are an IT organization or a
service provider, you will learn to accept
it– and make it work for the enterprise.
John Keppel
(ISG president for Europe, Middle East and Africa)

5. INTRODUCTION
Difference Between Outsourcing and Insourcing
OUTSOURCING:
A companycontracts out services and tasks to outside
specialists. This thenallowsthecompanyto focus onkey
activities and create cost advantages.
INSOURCING:
A companybrings in a specialist tocompleteprocesses and
tasksthat would have otherwise been outsourced.

6. SOURCING
Insourcing or Outsourcing
Insourcing
 Tasks are handed over to a sister company.
 A spin-off company is created specifically for the new task.
 Services are assigned in-house to other departments (temporary
work, etc.).
Outsourcing
Services are contracted out to external companies (regional or
global).

7. SOURCING
Types
Out-Tasking The company outsources individual processes and tasks to an external
provider.
SelectiveOutsourcing The company submits specific tasks of one functional area to an
external provider who has the appropriate expertise .
TransitionalOutsourcing The company hires an external provider to manage its processes and
activities of all functional areas.
ComprehensiveOutsourcing The company hands over a process to a service provider with the
necessary expertise in new technology systems.
End-of-Life(EOL)Manufacturing At the end of their production, products are handed over to providers
who dispose of products or handle spare parts.
ApplicationServiceProviding(ASP) A third party that manages and distributes software services and
solutions to a company.
CloudComputing Customers have accessible services through online servers and
storage.
SalesOutsourcing Specialized service providers take care of individual sales steps.

8. SOURCING
Offshoring vs. Outsourcing
OFFSHORING
 A company moves the location of a service abroad.
 This location belongs to the company.
OUTSOURCING
 A company hires a third party for a service.
 The third party’s location can be within the company’s
country or abroad.

9. SOURCING
Outsourcing and its Complex Demands
Internal
simple Demands complex
Selective
Outsourcing
Insourcing
Comprehensive
Outsourcing
ThirdParty

10. SOURCING
Application Service Provider (ASP)
SOFTWARE Provider
ASP
Application Service
Providing
Fast and standardized IT
solutions are used.
Computer-based services are
available on the provider's
network.
Customers

11. SOURCING
Organizational Levels
Strategy
 Select
outsourcing
measures
 Establish core
competencies
Contracting
 Define costs
 Describe services
coordination
 Find solutions
to problems
together
 Supervise
cooperation
Operations
 Define processes
and interfaces
IT
 Create an
infrastructure
 Establish
interfaces
 Write software

12. SOURCING
Four Outsourcing Strategies
Comprehensive
An external provider takes over a series of
processes across all functional areas. This is a
multi-year model.
Selective
Several processes within a functional area are
given to an external provider. This model is a
long-term strategy.
Contracting
A contractor is paid
hourly/daily/weekly/monthly.
Licensing
This model contains tactical solutions defined
with a unit price and certain conditions.
Out-Tasking Models
BPO Models

13. PROCESSES
Factors for Deciding Between Outsourcing or Insourcing
Need for a wide performance range?
High strategic importance?
INSOURCING
OUTSOURCING
Need for complexity or specificity?
yes
yes
no
no

14. PROCESSES
Outsourcing – Example
Meetings with
stakeholders and higher
authorities
Keepthis activityin-
house
In-house negotiations with Creator Y
Xwantsto
outsource
Outsourcing to an
approved provider?
Negotiations with workers’ council
Agreement on the
activity?
Is there a higher-
ranking authority?
Agreement made?
Board makes decision
Should the higher-
ranking authority be
involved?
X wants todistributeorder
Joint
agreement on
the activity?
Outsourcethe
activity
yes
yes
yes
yes
no
yes
no
no
no
no
no

15. PROCESSES
IT Outsourcing Process Phases
1
STRATEGY 2
PROCUREMENT 3
CONTRACTING 4
IMPLEMENTATION
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16. PROCESSES
Outsourcing Process Duration
phases JAN FEB MaR APR MAy JUN JUL AUG SEP OcT NOV DEc
1. Preparation
2. Possible Solutions
3. Selecting a Provider
Phase 1:
Pre-selection
Phase 2:
Bidding
Phase 3:
Assessment
Phase 4:
Concept presentation
Phase 5:
Outsourcing assignment
4. Implementation

17. 27
16
15
11
9
22
IT
HR
Sales & Marketing
Finance
Administratives
Other
APPLICATION
IT: The Largest Outsourcing Field (by Percentage)
Source: Idoyourjob, 2010

18. EffectivenesS
data protection
more
transparency
better service
a focus on core
competences
access to key
technologies
Efficiency
cost reduction
performance
improved
business
processes
more flexibility
less fixed capital

19. APPLICATION
Important Clauses in a Contract
Terms & Conditions
Performance
Contract
Period/Termination
Breach of Contract
Repercussions
Privacy Protection
Contractual LiabilitiesPayment
Scope of Work
CONRACT

20. APPLICATION
Service Level Agreement
Services for thecontractual periodare:
 Evident
 reliable
 accessible
 secured
 trustworthy
 scalable
 verifiable
 payable
 effective
 needs-based
SERVICE LEVEL AGREEMENT
define the performance
metrics between
both parties of the
contract.

21. APPLICATION
Service Level Agreement – Example
Service Level
Agreement
Basic
1 Year
Standard
1 – 3 years
Premium
1 – 5 years
Free Phone Support Mon-Fri, 9
am – 4 pm
24/7 24/7
Response Time 24 hrs 12 hrs 30 min
Hardware Exchange 24 hrs 6 hrs 3 hrs
Customer Portal with
Service Level Reports
Repair Services Within a month 12 business days 6 business days
Routine Maintenance Optional Optional Optional
… … … …

22. Problem
 Missing or little exchange of
information and know-how
Problem
 No measure of performance
Problem
 No attention to personnel
issues
Solution
 Communication management
Solution
 Project management
Solution
 Integration management
APPLICATION
Problems and Solutions

23. APPLICATION
Provider Selection Criteria
Contract terms & conditions
Market stability
Skills
Equipment
(technical andpersonnel)
Appropriate size and structure
Industry knowledgePossibilityof taking over
other services

24. APPLICATION
Comparing Costs, Risks and Qualitative Criteria
In-house performance Insourcing Outsourcing
Value
Valu
e
Value
Investments 25% In-house investments 2,0 No investments 3,0 Required investments 1,5
Personnel costs 30% Satisfactory conditions 2,0 Satisfactory conditions 2,5 Good conditions 2,5
Operating costs 25% Space, storage, etc. 2,5 Space, storage, etc. 2,0 Dependent on negotiations 1,8
Start-up
expenses
15% Only by investments 3,0 Low 2,5 Moderate 1,2
Misc. 5% Low 2,0 Low 2,5 Moderate 1,5
Total 100% 2,3 2,6 1,5
Know-how 30% gut 2,0 Good 2,5 High 3,0
Flexibility 30% Good 1,0 Low 1,5 Proficient 2,8
Service 40% Average 1,5 Constant 2,0 Good 3,0
Total 100% 1,5 2,0 2,9
Transfer of
holdings
20% Omitted Partial 2,0 3,0
Performance
risks
35% Constant process Constant process 2,0 Total 2,5
Dependence 15% Non-existent Partial 2,5 Existent 2,5
Anlauf-
probleme
10% Only by investments Partial 2,5 Existent 2,0
Total 100% 1,5 2,2 2,6
risks
Qualitative
QualitativeCriteriaCosts

25. APPLICATION
Key Performance Indicators
Outsourcing-Service Key Performance Indicator(KPI)
Availability Time (hours)
Service Costs for a fixed period (e.g. monthly or
quarterly)
Processing service requests Within time period X
Quality/efficiency Number of complaints within the time period;
number of employees
Solving customer problems Wait time for incoming calls; amount of
problems solved within the first call

26. ASSESSMENT
Reasons for IT Outsourcing
Finance
 High expenses for new
technologies can be avoided.
Risks
 Privacy protection can be
increased.
 Threats and risks can be
covered by the outsourcer’s
contract.
Technical Knowledge
 Special, up-to-date IT
knowledge is available.
 New technology trends can
be applied.
Concentration
 Focus can be on the essential
processes and tasks.
 Staff capacities can be
utilized for core business.
Staff
 Less outsourcing difficulties
for specialized experts
 Less IT staff required
Costs
 Better cost planning and
transparency

27. Strategy
 Focuses on core tasks
 Transfer of risks
 Transfer of hazardous
sites
Strategy
 Morale problems
among employees
 Data privacy
 Loss of knowledge
 Dependency
Service-oriented
 Quality improvement
 More free capacity
 Constant service
Service-oriented
 Too much
standardization
 Possible poor quality
and service by
outsourcing provider
finance
 Transparent costs
 Reduced costs
finance
 More difficult to
control costs
 High conversion cost
 Uncertainty in cost
planning
ASSESSMENT
IT Outsourcing – Pros and Cons
Pros
Cons
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28. CROWDSOURCING
Crowdsourcing and Outsourcing
Crowdsourcingisa typeofoutsourcingwhere
projectsaregivento apubliccrowdoronline
community.
Example:
No Compensation
Wikipedia - Users edit or add on to the online
encyclopedia. Wikipedia is free of charge and
accessible to all users.
Compensation
uTest.com - Users rate tools, proofread articles, and
test other services. Payment varies depending on
the task.
>

29. CROWDSOURCING
4 Groups of Crowdsourcing
+
Crowdfunding
A crowd is asked to provide
funds for specific projects.
When the targets are reached,
the money is reimbursed or
given back in other forms,
such as gifts or benefits.
+
Micro tasks
A large project is divided into
small tasks for online crowd
members to complete.
+
Crowdcontests
A crowd competes for one
task and a winner is
determined at the end. Only
the winner receives
compensation.
+
Macro tasks
A specialist in the crowd is
hired to complete one large
task.

30. CROWDSOURCING
Pros and Cons for Crowdsourcing
Pros
Versatile ideas and perspectives Crowd knowledge lacks expertise
I.
Fast connection to the market Takes time and money to evaluate
responsesII.
Deeper insight into customer needs Large number of non-relevant
responsesIII.
Cons

31. CROWDSOURCING
Crowdsourcing Model
Motivation of the
Crowd
1
2
4
3
Infrastructure
Human capital
Vision
Environment

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