FREE ESSAY ON OUTSOURCEING FRAMEWORK

OUTSOURCEING FRAMEWORK

Outsourcing Framework Assignment
Intent: To provide the company and practitioners with tools and guidelines for addressing
both domestic and multi-national sourcing needs. This outsourcing methodology consists of
three activities covering the assessment, procurement, implementation, and ultimate
maintenance of an arrangement between the company and their outsourcing vendors.
Section 1: Step-by-Step Framework
A. The summary of tradeoffs to meet its business and financial goals through the next
five years, the company needs to leverage technology advances, changes in the regulatory
environment, cost reduction opportunities resulting from privatization of service vendors
abroad and the proliferation of the information technology by transforming its photo
equipment and chemical lines along with current customer service implementation into a
highly responsive globally integrated configuration while using its buying power to
decrease costs.
Framework will mandate tactical design, provisioning, deployment, bill consolidation and
payment operations and maintenance for companies photo copiers and related equipment and
will be the primary focus for evaluation in order to identify opportunities to reduce
costs, improve service delivery, introduce new services currently not outsourced and add
the flexibility necessary to favorably position company in its competitive marketplace.
The methodologies anticipate the requirements for information technology by recognizing
and structuring the interplay between technology, operational and organizational factors.
These tools address the challenge of developing effective solutions by balancing the
consideration of the whole set of factors faced in their design, implementation, and
operations.
Teams will focus on analyzing how market and technology changes may impact company costs
related to the products and services defined in its global marketing strategy and
identified as part of the scope of the program. Among key areas to be analyzed, market
deregulation, chemical and hazardous material removal, equipment manufacturer
privatization, technology advances and the progress in the development of global
alliances will constitute the primary subjects of our analysis.
Phase 1: Discovery: Assess the current global photo, chemical, and services environment
and costs; Identify areas of opportunity for cost reduction and optimization, service
delivery improvements and contract/tariff renegotiations; Formulate specific
recommendations for a photo copier service delivery model and associated outsourcing
scenarios to meet companies financial and business goals through to the next five years.

Phase 2: Decision: Evaluate the outsourcing options that best meet companies
organizational and contract requirements.
Phase 3: Implementation: Select one or more service provider(s), negotiate contract(s)
and transition from current state to desired state.
B. Phase 0: Establishment of the Program Team
The objective of Phase 0 is to validate the program objectives and scope, to establish
the Program Team structure and organize the Program Office 
Step 0.1.1 Validate Objectives and Scope Engagement
Step 0.1.2 Deploy the Program Team and Organize the Program Office
Step 0.1.3 Communicate Program Objectives and Organization to Key Program Stakeholders
PHASE 1: Discovery 
The primary objective of this phase is to help the company develop an assessment of its
current photo, chemical, and services environment taking into consideration the key
dimensions. 
Step 1.1.1 Finalize the list of products and services and measurement metrics
Step 1.1.2 Finalize site and representatives' lists 
Step 1.1.3 Develop and distribute a survey kit 
Step 1.1.4 Conduct company technical staff interviews
Step 1.1.5 Conduct business unit representatives' interviews
Step 1.1.6 Conduct site visits
Step 1.1.7 Organize company current global photo equipment environment data
Step 1.1.8 Research relevant industry information
Step 1.2.1 Analyze and assess company information technology cost management
Step 1.2.2 Analyze and assess company service delivery model
Step 1.2.3 Current contracts and tariffs assessment
Step 1.2.4 Assess opportunities 
Step 1.2.5 Develop the company global information technology framework assessment report
Step 1.4.1 Review current environment assessment findings
Step 1.4.2 Prepare and conduct workshops
Step 1.4.3 Develop final recommendations related to outsourcing configuration(s)
Step 1.4.4 Present recommendations
Step 1.4.2 Workshop Materials
Step 1.4.3 Recommendations on Outsourcing Configuration(s)
PHASE 2: Decision
The objective in the Decision phase is to assist the company Program Team in procuring
the service components required by the recommended outsourcing configuration(s). 
Step 2.1.1 Develop a high-level preliminary draft outline of the RFP
Step 2.1.2 Develop the information technology outsourcing service requirements
Step 2.1.3 Develop RFP
Step 2.1.4 Determination of the evaluation criteria
Step 2.1.5 Identify qualified bidders
Step 2.3.1 Initial RFP response analysis
Step 2.3.2 Best and Final offer analysis
Step 2.3.3 Negotiation strategy definition
Step 2.3.1 Initial Clarification Questions
Step 2.3.2 Invitation to Best and Final Offer
Step 2.3.3 Negotiation Strategy
PHASE 3: IMPLEMENTATION
At that stage, the company management's role will be to work with the staff within the
transition teams set up to organize, facilitate and/or support the transition with the
finalist(s). 
Step 3.1.1 Team organization 
Step 3.1.2 Transition planning public relations
Step 3.2.1 Assist in the finalization of outsourcing configuration financials
Step 3.2.2 Assist in the final contract terms and condition negotiation(s)
Step 3.2.3 Assist in the finalization of vendor management processes
Step 3.2.4 Assist in the finalization of company account support
Step 3.2.5 Assist in the finalization of architecture & operations issues
Step 3.2.6 Assist in the finalization of Human Resources transition
Step 3.2.7 Assist in the implementation of the signed contract(s)
Section 2: Strengths and Weaknesses Discussion
The following discussion elaborates on the perceived strengths and weaknesses of my 
framework. 
Because outsourcing does not automatically reduce IT operating costs, are there right
reasons to outsource? Outsourcing is a viable strategic alternative for IT divisions,
departments, or organizations. Although cost reduction remains the primary assumption
underlying many outsourcing contracts, actual savings are realized only under specific
circumstances (e.g., highly inefficient IT operations, asset procurement economies of
scale, remote site support). Given outsourcer cost structures, outsourcing vendors must
be at least 25% more efficient (e.g., productivity, economies of scale) simply to match
internal IT operating costs.
Know your business. IT management cannot implement effective IT services without first
understanding the business objectives that the IT services should support (or enable).
The IT strategy should detail these services alongside desired business objectives. 
While there are no right answers for outsourcing decisions, there are common threads that
pervade many IT organizations. For example, many companies successfully outsource PC
life-cycle services (e.g., procurement, installation, moves, adds, changes, retirement),
since desktop services can be highly standardized. Desktop services are commodity in
nature (i.e., similar process and products among vendors), significantly reducing the
risk of poor vendor performance. Again, companies that have successfully outsourced these
functions either started off with a solid understanding of the process or spent
significant time working with a vendor to implement a new process and then tune it. Many
of the organizations reporting less than satisfactory results in this area started with
poor processes and assumed that the vendor would automatically instill best practices.
Section 3: Analysis
Bibliography
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