Smarter Outsourcing: An executive guide to understanding, planning and exploiting successful outsourcing relationships

Cover......Page 1
Contents......Page 6
Foreword......Page 12
A question of understanding......Page 13
Why we have written this book......Page 14
Power with responsibility......Page 15
About the authors......Page 16
List of abbreviations......Page 17
Acknowledgements......Page 19
What do you mean by outsourcing?......Page 20
Our definition......Page 22
Using your M&A skills to best advantage......Page 23
Six principles for outsourcing success......Page 24
Our approach in this book......Page 26
Clear deal and strategy alignment......Page 28
The surrounding stakeholder context......Page 52
Communicating the nuts and bolts of the deal......Page 55
Preparing for the exit before the start......Page 56
Detailed risk factors: into the schedules......Page 57
Protecting intellectual property......Page 58
Managing multiple suppliers: ‘best of breed’......Page 59
Defining the interconnects......Page 60
The prime contractor route......Page 61
Thinking the unthinkable: coping with meltdown......Page 62
Risk questions for suppliers......Page 63
Not a case of all or nothing......Page 64
Offshore providers’ onshore presence......Page 65
Clear shared value......Page 68
Value-based negotiation......Page 84
Openness or secrecy?......Page 100
Setting the pattern of communication......Page 101
A coherent story......Page 102
Change + uncertainty = pain......Page 103
Governance and controls: be holistic – and rigorous......Page 104
Documenting the start and end state......Page 105
Avoiding winners and losers......Page 106
Crystallizing the benefits......Page 107
The supplier’s revenge......Page 108
What gets left behind?......Page 109
Leaving dysfunction behind......Page 110
Defining and monitoring roles......Page 112
Linkage with users’ interests......Page 113
User perception is reality......Page 114
Using intermediaries for early benchmarking......Page 115
External industrial metrics......Page 116
Realizing the benefits......Page 118
Defining the role of the retained team......Page 119
Staying in command......Page 120
Ten key competencies – correctly positioned......Page 121
Clear responsibilities in a shifting environment......Page 123
Building maturity . . .......Page 124
. . . aided by continuity......Page 125
Becoming a well-oiled machine?......Page 126
Benchmarking BPO: a do-it-yourself approach......Page 127
Towards metric-based gain sharing......Page 128
A hierarchy of measurement......Page 130
Relationship and contract management: the role of governance......Page 131
A return to ‘grace and favour’ projects?......Page 134
Brand damage: consequential losses – by another name?......Page 135
Ongoing access to innovation......Page 136
The power to escalate......Page 137
Managing future risks through flexibility......Page 138
Mutual executive openness for mutual benefit......Page 139
The role of ‘trust brokers’......Page 140
Suppliers’ executive team: the need for maturity and vision......Page 142
Towards a joint approach......Page 143
Managing the investment markets......Page 144
Executive challenges for suppliers......Page 146
Conclusion: The ultimate executive tool......Page 150
At the frontier......Page 151
Societies in competition......Page 152
The philosophy of sourcing......Page 153
The supplier of the future . . .......Page 154
. . . and the sourcing ‘web’......Page 155
Creating complementary flexibility . . .......Page 156
. . . through the new generation of suppliers......Page 157
Hybrid culture – not bastardized culture......Page 158
From cost, to quality . . .......Page 159
. . . to innovation......Page 160
A structure for improving quality......Page 161
Shared benefits from innovation......Page 162
A sharper tool......Page 164
Underwriting the responsibilities......Page 165
The future: strategy, sourcing – and shareholder activism......Page 167
A global shift......Page 169
Investor vigilance extends from M&A to outsourcing......Page 170
Shoulder to shoulder......Page 171
Are you ready to outsource?......Page 174
Specialist section 1: Financial engineering......Page 180
Specialist section 2: Legal issues......Page 183
Specialist section 3: Communication issues......Page 187
Specialist section 4: Human resource issues......Page 195
Specialist section 5: Tax issues......Page 198
case study 1 Fin-Force......Page 204
case study 2 GECIS......Page 209
case study 3 J. Sainsbury......Page 212
case study 4 Aegon/GRE......Page 216
case study 5 BP......Page 218
case study 6 Nextel Communications......Page 223
case study 7 JP Morgan......Page 226
case study 8 BT/Accenture HR outsourcing......Page 231
Index......Page 236