Professional Documents
Culture Documents
May 2005
Copyright 2005 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
Running Outsourcing
Next Steps in Outsourcing
Outsourcing denotes the continuous procurement of services from a third party, making use of highly integrated processes, organization models and information systems.
2005 Accenture All Rights Reserved. 3
50 - 70
70 - 80
80 - 90 90 -
32%
24%
Outsourcing models:
Customized
One-to-one
Industrialized
One-to-many
low
medium
high
Degree of industrialization
Custom designed services leveraging know-how Similar services delivered to multiple clients Single service delivered to multiple clients simultaneously
Security - End-to-end security services including firewall management, intrusion detection, identity management and security policy
Data Centers - Remote and on-site managed server hosting - Data centers
Technical Support - Help desk, desk-side and self-service support - Global hubs Network Services - Managing data and voice networks Desktop Management and Mobility - PC, laptop, hand-held, distributed Supplier Management - Identifying, qualifying, contracting and managing strategic suppliers
Sales Support and Mobilization Hosting Technical Support Services Network Management Security Operations Desktop Management & Mobility Messaging & Collaboration
2005 Accenture All Rights Reserved.
10
Montreal (1) Chicago (1) Cincinnati (1) Houston (1) Toronto (1) Wilmington (1) Atlanta (1)
Malaga (1)
Mumbai (3) Bangalore (3)
Dalian (1) Shanghai (1) Hyderabad (1) Chennai (1) Manila (8)
So Paulo (1)
Mauritius (1)
11
12
13
One Stop
Locals
Pure Players
14
INTRODUCTION Key drivers for Outsourcing (Survey Results) Why do outsourcing? - Survey Results
Access best in class business processes Harness leading technologies Increase efficiencies Enhance capabilities Expand service Enrich customer relations Improve supplier relations Free up management time Decrease operating costs
15
16
Running Outsourcing
Next Steps in Outsourcing
17
Outsourcing Options
Continuous Improvement
Co-Sourcing
Captive
18
Management Control
Budget Levels
Financial Flexibility
Infrastructure Quality
Organizational Impact
Time to Benefit
19
Infrastructure Quality
Organizational Impact
Time to Benefit
Sourcing Option
20
ILLUSTRATIVE
6 Months
ICT Budget
- Illustrative -
Business Projects 20 % SWR & NSWR 10 % Maintenance 15 % Operate & Infrastructure 45% Manage & Support 10 % Discretionary
Fixed
21
Demand Stability
Scope of Control Transformation Potential
Follow-up Business
What else might be offered to the client (ex. Business process outsourcing?)
22
Decision
IT Opportunity Assessment Assess current environment Define Target Model and sourcing strategy Create change program
Create Programs
Decision
Baseline the business and operating direction and strategy as applicable Benchmark expenses to similar industry segments across functions/processes Interview key stakeholders Understand key drivers of resource utilization to set a baseline and construct an economic model Plan and develop material for executive workshop
Develop high-level implementation roadmaps based on approved target operating model and sourcing strategy Identify key stakeholders and related action plan Define economic model for the integrated change program
23
CLIENT EXAMPLE
100%
Concept
Development
20% Functional Design 40% Requirements refinement/design control 25% Acceptance test 5%
Deployment
Maintanance
40% Requirements, Functional Design and Acceptance 10% Acceptance and Implementation 10% Acceptance and Implementation 40% Prioritization, Escalation
Enhancements
Build, test and implementation Technical changes, as requested, assuming no new functionality Fixes and root cause analysis 2nd level support
24
25
Develop Products and Services 1.1 Predict local market changes 1.2 Assess internal execution capabilities 1.3 Design more flexible products 1.4 Segment population better 1.5 Communicate during product development Manage Delivery Capacity 2.1 Support pull-through strategy 2.2 Better manage provider contract terms 2.3 Model provider locations 2.4 Track contracts more closely 2.5 Innovate new reimbursement models 2.6 Roll out provider profiling 2.7 Enhance Q-Star to support providers Sell Products and Services 3.1 Enable electronic enrollment 3.2 Assemble member-unique benefits 3.3 Manage workflow electronically 3.4 Reinvent broker value chain 3.5 Improve automation of buyer contracts 3.6 Enhance underwriting capability 3.7 Improve SSS functionality 3.8 Enhance employer group reporting Deliver Health Care Products and Services 4.1 Coordinate health improvement initiatives 4.2 Triage members and channel them 4.3 Develop outcomes management strategy 4.4 Enable doctors to perform HRAs 4.5 Develop Proactive Interventions 4.6 Improve case management capability 4.7 Better match transitions and transactions across Allina 4.8 Improve disease management capability Deliver Administrative Products and Services 5.1 Create reimbursement modeling system 5.4 Stabilize key system availability and performance 5.5 Create business-specific data warehouses 5.6 Increase electronic claims submission 5.7 Implement utilization management tools 5.8 Improve referral/authorization/precerts 5.10 Improve COSMOS management reporting Support Relationship Building and Management 6.1 Automate appeal/complaint process 6.3 Create proactive intervention facility 6.5 Develop life care plans for members 6.6 Improve information distribution 6.7 Improve access to compliance data 6.8 Improve performance reporting capabilities 6.9 Improve Q-Star stability 6.10 Roll out HealthVillage 6.11 Develop common call center infrastructure Manage Infrastructure 7.5 Enhance communication through entire system 7.6 Turn our data into revenue 7.7 Solve help desk responsiveness issues
0.1 - 0.2 0.1 - 0.2 0.5 - 1 0.5 - 1 0 0.3 - 0.5 0.1 - 0.2 0.2 - 0.5 0.5 - 1 1 - 1.5 0.5 - 1 0.3 - 0.5 0.5 - 2 1 - 2 1 1 - 3 0.25 - 0.5 0.5 - 1 0.5 - 1 0.25 - 0.5 0.1 - 0.3 0.1 - 0.3 1 - 3 0.1 - 0.3 0.5 - 1 0.5 - 1.5 0.5 - 1.5 0.5 - 1.5 0.5 - 1 0.5 - 2 1 - 3 0.5 - 1.5 0.5 - 1 0.25 - 0.5 0.1 - 0.3 0.1 - 0.2 0.5 - 1 1 - 2 0.1 - 1.5 0.1 - 0.2 0.1 - 0.5 0.1 - 0.3 1 1 - 1.5 0.1 - 0.1 0.5 - 1 0.1 - 0.3
12 12 6 6 3 6 3 9 9 12 12 6 12 18 9 18 9 9 6 6 3 6 18 6 9 12 12 18 12 12 18 12 9 6 6 9 12 18 9 6 6 6 12 12 3 6 6
Barriers to Change
L L M H L M M M M H H L H H L H L L L L L L M H H L M M L L L M L L L L M H L L L L L L L M L
L L L H L M L L M H M L M H M H L M M L L M H L M M H H H L H M M L L L M H M L M L L L L M M
M M H H L M M L L H H L M M L H M H L L M M H L M H L H M L M M H M L L M M L L L L L M L H L
L M L M L M L H H M M H H H H H H M M H L M L L M M H M L M M M L H L M H H M L M H H M L L H
L L L M L L L L L L L L L L L L L L L L M M H H M M L H L L L L L L L L M H L L L L L L L L L
H L L H M M L L M L H H M L H M M M H H M M M M H L M M L H H H M L H L H M H H H M H L H L M
L M M H L H L M M M M L H H H M M L L L H H M M H M H M L L H L L H L M H H L L L M H M L M L
Summary of Issues
Fundamental issues in the partnership between IT and the business Highly reactive organisation, unintegrated silos, limited coherence of vision Beyond a few well-intentioned individuals, there is little evidence of architecture leadership Major issues recognised; but change is hugely challenging. There is still a lack of partnership between SC and ISSM Legacy is reasonably stable - but are we ready for e? Some poor financial controls; cultural issues inhibit getting best value from IT people.
Governance Strategy Development & Planning Architecture Management Solutions Development & Planning Service Delivery Resource Management
Inadequate
Best Practice
Inadequate
Best Practice
Inadequate
Best Practice
Inadequate
Best Practice
Inadequate
Best Practice
Gap Analysis
External Point-of-View
(M $)
(A)
2001
2002
2003
2004
As Is SD Budget Baseline Adjustments due to Price/Performance evolution Potential savings from infrastructure Other savings opportunities To Be Operational costs Organization and One-Time Costs Total Costs
937
913
925
940
Revenue Generation
Financial Analysis
2005
940
(B)
Included in (A) 3 0 934 35 969 28 10 875 74 949 85 40 800 70 870 129 50 761 40 801 129 50 761 19 780
Executive Review
(G)=(E)+(F)
-32 -32
937 -32 -32
-36 -68
903 -46 -78
55 -13
903 33 -46
139 126
894 93 48
160 286
894 114 162
(I)
(J)=(I)-(G)
(K)
26
Running Outsourcing
Next Steps in Outsourcing
27
Delivery Model is based on several key components Common objectives & goals End-to-End governance structure Multi-level team organisation
LOCAL
Leveraged core competencies and skills Formalised SLAs, OLAs, KPIs Forum for engaging multiple sources in the key processes of communication, coordination and integration Optimize global resources Encourage collaborative working Leverage technology to enable business strategy
SPOC
NEAR-SHORE
SPOC
OFF-SHORE
Common Processes
Client
Accenture
Skill Pool
AMP
29
SUPPORT TOOLS
SDM Estimator SBP Standards & Methods SBP Configuration Manual
AAB IT & Security Policies & Standards Deliverables Library & Template Project Deliverables Repository Accenture Knowledge Exchange
DEPLOY
30
Joint Management
Development Center
Unit Manager Staff Functions
Off-Site Coordinator
Configuration Specialists
Release Management
Development Support Team Environment & Dev Tool Mgt. Configuration Management
Vendors
Near Off Other
Near-Shore
Off-Shore
TP
Functional Design Check List
TP
Technical Design Check List
Prepare UAT
TP
TP
TP
32
Running Outsourcing
Next Steps in Outsourcing
33
34
Questions
?
2005 Accenture All Rights Reserved. 35