New Approaches to Staffing the IT Function

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New Approaches to Staffing the IT Function
Your Corporation
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Outsourcing Solutions
Outsourcing, as a business strategy and a
relationship model, has evolved during the past
decade to become a dominant force in enterprises'
IT strategies... Growing recognition of the
imperatives to align IT and business strategy has
been a significant driver for the adoption of a
"business-focused" approach to IT -- and, thus,
outsourcing strategies outsourcing has gained a
broader foothold in some organizations to
encompass the responsibility for the underlying
IT-enabled business processes and even business
outcome -Gartner
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Partnership Solutions
Many corporations enter strategic partnerships to
leverage core strengths and enter new markets.
Relationships are formed in which organizations
compliment each others capabilities and achieve
outcomes that were previously not possible.
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Strategic Solutions
Strategic outsourcing is gaining strength in the
marketplace. More and more companies are looking
at the activities that add value to what they
provide to their external customer and where they
need to focus their limited resources to make
sure they make a difference.
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Sourcing Resources

• Employees
• Consultants
• Contractors
• Outsourcing
• ASPs

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Employee Candidates

• More readily available
• Skills expertise levels higher
• Seeking security
• Harder to eliminate if bad fit

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Contractors vs. Consultants
Is there a difference ?
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Uncommon Solutions Consultants

• Provide guidance technical or management
• Hired for discrete task or project
• Leave at end of task or project
• Examples
• System integrator
• Internet security certifier

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Uncommon Solutions Consultants Contractors

• Provide guidance technical or management
• Hired for discrete task or project
• Leave at end of task or project
• Examples
• System Integrator
• Internet Security Certifier

• Perform job defined by firm
• Hired to perform a specific task or role over
  time
• Can be hired
• Examples
• System Administrators
• Trainers

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Consultants Contractors

• Engaged when
• Duration of need is limited
• Requisite skills dont exist in-house
• Required manpower doesnt exist internally

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Using Contractors

• Benefits
• Provides quick way to staff functions
• Pushes brunt of hiring effort to vendor
• Off-loads some personnel management
  responsibilities
• Serves as good source for hiring employees (Try
  before you buy)
• Option during hiring freeze

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Uncommon Solutions Outsourcing

• Growth is projected to be high in next 3 years,
  especially as organizations seek to increase
  operating efficiency

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Reasons to Outsource

• Opportunity to control costs

On an apples-to-apples, service-level-to-service-
level basis for typical IT services, an efficient
IS organization will show costs less than that of
an outsourced price by 20 percent or more.
Gartner
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Quality Management

• We at Uncommon Solutions consider project
  management to be one of our
• companys strong points. We have a Software
  Engineering Process
• Group (SEPG) looking into the quality process on
  a regular basis The
• Quality Process in Uncommon Solutions ensures to
• deliver products, which meet customer needs
• deliver these products within specified
  timeframes
• make teamwork more effective
• deal with changing customer requirements
• raise the quality of the products
• Project Management Team
• All our project managers and team leaders have
  strong development backgrounds and comprehensive
  knowledge of modern software technologies. Their
  wide experience allows them to make prompt and
  sound decisions.
• Quality Process
• Though the quality processes at Uncommon
  Solutions are assessed at ISO 90012000, we have
  adopted the SEI Software Capability Maturity
  Model (CMM) as a framework for continuous
  software-development-process improvement.
  Uncommon Solutions has a definite road map to
  achieve CMM Level 4 by the end of the year.

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Quality Goals

• Anticipate and meet customer needs and exceed
  their expectations
• Relentlessly improve how we workto deliver the
  world's best software solutions, faster and more
  cost-effectively than our competitors
• Lower cost of ownership, involving systems that
  avoid cost overruns, are more maintainable, and
  easer to apt over time to changing corporate
  needs
• On-time delivery, avoiding the unplanned use of
  resources
• Meeting service level requirements

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Uncommon Solutions Outsourcing Drivers

• 1. Access to Critical IT Skills
• 2. Quality of Service
• 3. Scalability
• 4. Focus on Core Competencies
• 5. Capacity on Demand
• 6. Cost Savings

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Outsourcing Drivers

1. Complex and evolving Federal, State and Local
   regulatory compliances.
2. Increasing demand of IT service availability.
3. Convergence of IP services such as Identity and
   Access management.
4. Expanding Internet threats such as viruses and
   Spyware / malware.

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Outsourcing typically contains five distinct
phases
It has a strategic as well as an operational
dimension with a continuous feedback loop
The five phases of Outsourcing
Operational dimension
Strategic dimension
Implemen-tation
Run
Review
Define Outsourcing strategy
Select the Outsourcing partner

• Clarify reasons for Outsourcing
• Identify and commit stakeholders
• Develop Outsourcing objectives and strategy
• Perform Cost-Benefit analysis
• Define project plan

• Develop requirements specification
• Evaluation of long list
• Conduct RFQ process
• Develop short list
• Find Best Fit Outsourcing partner
• Negotiate and finalise contracts

• Define new processes
• Develop detailed specification for Outsourcing
• Define and implement SLAs and Service Level
  Management
• Prepare organisation for new processes

• Implement new processes
• Manage Outsourcing Partner
• Control Service Level Agreements
• Decide on upgrades/functional extensions
• Investment decisions

• Evaluate results with respect to initial
  objectives
• Evaluate planned vs. actual cost
• Review objectives
• Review/re-negotiate contracts
• Extend/maintain/terminate relationship with OS

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The Outsourcing strategy is a dynamic process
continuously adapting to changing requirements
and searching the best partner for a particular
issue
The strategic dimension of Outsourcing
Strategic dimension
Define Outsourcing strategy
Select the Outsourcing partner

• The strategic decisions regarding Outsourcing are
  typically done by the IT sstrategy department
• The Outsourcing Strategy must deal with all
  aspects of Outsourcing as well as the components
  to be outsourced
• The selection of components to be outsourced
  should be one-by-one based on a business case for
  each one, i.e. networks, help desk, applications,
  processes
• Selecting the Outsourcing partner must be a
  process which aims at continuously evaluating the
  existing and/or new partners

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The selection of components to be outsourced
should be done one-by-one based on a business
case for each step
The decision for components to be outsourced

• The strategic decisions regarding Outsourcing are
  typically done by the IT Strategy department
• The Outsourcing Strategy must deal with all
  aspects of Outsourcing as well as the components
  to be outsourced
• Selecting the Outsourcing partner must be a
  process which aims at continuously evaluating the
  existing and/or new partners

Component B
1
Component A
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Degree of business influence
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Component C
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Component D
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1
2
3
4
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Economical potential
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Implementing an Outsourcing initiative requires
careful management. Review results must be fed
back to the IT Strategy department
The operational dimension of Outsourcing
Operational dimension
Feedback into IT Strategy
Implementation
Run
Review

• The operational dimension of Outsourcing is
  typically done by a project or delegates of the
  line organisation
• For each Outsourcing initiative a Service Level
  Management must be set up involving all concerned
  parties
• Careful preparation of the organisation for the
  new processes is crucial
• The review process must be a periodic task
  whereby the Outsourcing results are evaluated
  against the initial objectives and fed back to
  the IT Strategy department

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What Can / Should be Outsourced?

• Examine technology initiatives re
• Criticality of the service / function
• Appropriate skills and expertise among staff
• Available/approved staffing levels

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What Can / Should be Outsourced?

• To compare costs, get understanding of current
  in-house costs of service / function
• Staffing and related issues (training,
  management, etc.)
• Hardware
• Software
• Space

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Watch Out !

• As many as 25 of all outsourcing
  relationships fail because the client doesnt
  clearly communicate its needs, costs exceed
  expectations, and quality of service is poor.

Dun and Bradstreet