A practical framework for understanding the outsourcing process

Abstract: 

Over the last number of years, outsourcing has become an important issue for many organisations. The potential for outsourcing has moved from peripheral activities such as cleaning and catering to critical activities such as design and manufacturing. However, there is evidence to suggest that organisations are not achieving the desired benefits from outsourcing. Outsourcing decisions are rarely taken within a thoroughly strategic perspective with many firms adopting a short-term perspective and being motivated primarily by the search for short-term cost reductions. The aim is to illustrate that outsourcing should be carried out from a strategic perspective and integrated into the overall strategy of the organisation by proposing an outsourcing framework. The framework attempts to overcome some of the problems associated with outsourcing by integrating a number of key strands related to outsourcing including a value chain perspective, core competency thinking and supply base influences into the decision-making process. 

Keywords: Benchmarking, Core competences, Outsourcing, Supply chain, Value chain 

Empowering businesses with world-class solutions

MSC Malaysia is all about adding values to your business. We help spur growth through innovation and creativity. ICT-enabled by design and benchmarking world-class standards, MSC Malaysia solutions can help you focus and specialise on your core competencies and hone your competitive edge. You'll grasp the importance of knowledge talent and infrastructure - and ultimately optimise them to achieve your business excellence. This is where we come in. MSC Malaysia-Status companies have an impressive repertoire of solutions for you to choose from. So get connected with MSC Malaysia.

	We can have our pick. Why should we choose msc malaysia solutions?
	Because MSC Malaysia is more than just a world-class solutions provider. We're target-specific and non-technology focused, so we can match each ICT need with its own unique solutions. We are attentive to market demands. We produce creative and strategic solutions that cater to all ICT sectors and all ICT clusters. Today MSC, MSC Malaysia solutions empower businesses with the edge to grow.
	We provide solutions for:-
	- Application Software - Creative Multimedia Content - Mobile Platform - Mobility Embedded Software & Hardware (MESH) - Offshoring - Security
	Some of the more well known solution that has been conceptualised by MSC Malaysia are as follows:-
	Electronic Government  Enhancing Government Service Delivery MyKad OBJECTIVE:  Improving Governance, Transparency and Government Service Deliveries Mykad Smart School OBJECTIVE:  Quality Education Smart School Telehealth OBJECTIVE:  Better Healthcare Delivery Telehealth

MSC Malaysia Capability Development Programme

	In an increasingly demanding, competitive and sophisticated global market, MSC Malaysia Capability Development Programme (CDP) is designed to help local ICT organisations to maximise their potentials by adopting global good practices and process improvements. CDP introduces a systematic approach in the delivery of products and services and prepares companies into the next phase of growth. CDP's programmes to empower local companies are aimed at enabling them to focus on their core competency and hone their competitive edge. This is in line with the MSC Malaysia initiatives in catalysing wealth creation for the nation.  At present there are 11 organisational development programmes offered together with a new initiative for individual capability development launched early this year called the “Get IT Certified” campaign. This initiative focuses on improving the skills of ICT professionals in Malaysia in delivering world-class services. CDP not only assists companies and individuals in achieving these certifications more cost-effectively (nearly 50% cost reduction) but it also enables additional benefits from monthly dialogues, seminars, clinics and workshops developed to gear the MSC Malaysia status companies to achieve certifications that would ensure business continuity.
	For more information about MSC Malaysia Capability Development Programme as well as its latest happenings and events, kindly click here.
	CDP Capability Maturity Model Integration (CDP CMMI) CDP Project Management CDP Software Testing CDP Six Sigma CDP Information Security Management System (CDP ISMS) CDP Information Technology Service Management (CDP ITSM) CDP Quality Management System (CDP QMS) CDP Showcase CDP Professional Development (CDP PD) CDP Project Management Professionals @ Work Introduction Project Management is crucial to an organisation in achieving strategic objectives. It is recognised that successfully managed projects will increase productivity, bring return of investments (ROI), increase profits and improve customer services. Training your project managers to succeed often involves teaching them the best knowledge for their trade. If you're looking to improve the capabilities of your project managers with tools like the project management best strategies, techniques and processes, you should take a look at the CDP Project Management. CDP Project Management is a specially designed programme model aimed to assist MSC Malaysia Status Companies in getting their project managers professional equipped through various arrays of project management related awareness dialogues, certification programmes and workshops for continuous education purposes. Project Management Certification Currently, the following certifications are supported under CDP Project Management: Credentials by the Project Management Institute (PMI®) a) Certified Associate in Project Management (CAPM ®) Credential b) Project Management Professionals c) (For more information, go to http://www.pmi.org) Others: a) PRINCE2 Foundation b) PRINCE2 Practitioners c) (For more information, go to www.prince2.com) Applicable for employees of MSC Malaysia Status only, applications and incentive disbursement are conducted through the CDP Professional Development. Benefits With better training comes better quality. Participating in the activities under the CDP Project Management will improve the delivery capability of your project managers and expedite professional advancement. You gain quality improvement and risk reduction within the company in achieving strategic objectives and goals. It also provides the necessary skills for project managers to enable them to train other employees to contribute towards your company business goals. In the end, successfully managed projects will increase your profits, improve customer services and contribute toward overall global competitiveness and prestige. Programme Objectives a) Assist MSC Malaysia Status Companies in adopting project management best practices as a tool to increase service delivery capabilities b) Help increase MSC Malaysia Status Companies' competitiveness by enhancing their project management skills c) Encourage local ICT professionals to adopt related project management certifications as part of individual capability development

The 2008 Global Services 100 Companies

Meet the 100 best global service provider companies that made it to the Global Services 100 list in 2008

SOURCING THE PROVIDERS: METHODOLOGY   Hundreds of global IT and BPO service providers were invited to participate in this year’s Global Services 100 survey, and the response this year was the best in the history of the survey. Service providers from 17 countries, with delivery centers across 31 countries, comprised the list of participants. Functionally, these providers cover a range of services across IT and BPO, including IT application services, infrastructure, FAO, HRO and contact centers.   The top 100 list and the ranks in the 10 categories are based on a scientific methodology, starting with the responses being clubbed under four broad buckets: Size (revenue, employee strength, geographies covered, etc.), customers (customer base, testimonials and references, average contract size, etc.), skills (depth and breadth of offerings, delivery capability, quality initiatives, verticals covered, etc.) and others (attrition, training, etc.).   A weighted scoring scheme was used to rate each question. For the category lists, weights were assigned to address specific strengths and capabilities.   The scoring scheme was designed by a panel from Global Services’ and neoIT’s practice experts. Care was taken to ensure that all service providers (global, niche or regional) were given a level playing field. For a revenue-based question, for example, if the scoring scheme gave weight to higher revenue, small or niche companies pared this disadvantage by scoring high on better growth rates.   At each stage, the Global Services and neoIT experts validated the data presented. During this exercise, we found that some companies that would otherwise have gotten a high ranking did not make it to the category lists because they had sent incomplete information. Wipro, for example, is one company that would have certainly qualified in the “Top 10 IT Services” and the “Top 10 Infrastructure Services” providers list, but did not only because it did not complete the survey. Moreover, companies such as Accenture and Cognizant did not even figure in the top 100 list because they did not participate in the survey.       2008 Global Services 100 Companies: Company CEO URL 24/7 Customer P.V. Kannan www.247customer.com Aditi Technologies Pradeep Singh www.aditi.com Affiliated Computer Services Lynn Blodgett  www.acs-inc.com AppLabs Sashi Reddi www.applabs.com Augmentum Leonard Liu  www.augmentum.com Auriga Alexis Sukharev  www.auriga.com Aztecsoft Samir Bodas  www.aztecsoft.com Beyondsoft Group  Ben Wang  www.beyondsoft.com Birlasoft Kamal Manasharamani  www.birlasoft.com Cambridge Solutions Christopher A. Sinclair www.cambridgeworldwide.com Capgemini Paul Hermelin www.capgemini.com CGI Group     Michael E. Roach www.cgi.com Compass BPO  Devesh Nayel  www.compass-bpo.com CompuPacific International    Michael Liu www.compupacific.com Computer Sciences Corporation Michael W. Laphen  www.csc.com CPM Braxis Braxis Jair Ribeiro www.cpmbraxis.com DarwinSuzsoft (Dextrys) Brian T. Keane  www.darwinsuzsoft.com DataArt Michael Zaitsev  www.dataart.com DBA  Danilo Meth and Paulo Velloso  www.dba.com.br e4e Somshankar Das www.e4e.com ea Consulting Asia Pacific Chin King Wong www.eacap.com EDS Ronald A. Rittenmeyer www.eds.com EPAM Systems Arkadiy Dobkin www.epam.com eTelecare Global Solutions   John Harris www.etelecare.com Exigen Services  Alec Miloslavsky  www.exigenservices.com EXL Service Vikram Talwar  www.exlservice.com First Consulting Group Larry Ferguson www.fcg.com Firstsource Solutions  Ananda Mukerji  www.firstsource.com Freeborders Jean Cholka  www.freeborders.com GeBBS Technologies Nitin Thakor  www.gebbssolutions.com Genpact Pramod Bhasin  www.genpact.com GlobalLogic Peter Harrison www.globallogic.com Globant Martín Migoya  www.globant.com Globerian Naveen Trehan  www.globerian.com Grupo ASSA Roberto Wagmaister www.grupoassa.com HCL Technologies Vineet Nayar www.hcltech.com Headstrong Arjun Malhotra  www.headstrong.com Hildebrando Services   Diego Zavala  www.hildebrando.com.mx HOV Services (formerly LASON) Ronald Congburn www.hovservices.com HTC Global Services  Madhava Reddy  www.htcinc.com HTMT Global Solutions  Partha De Sarkar  www.hindujatmt.com IBA Group Sergei Levteev  www.iba-it-group.com IBM Samuel J. Palmisano  www.ibm.com ICT Group  John J. Brennan  www.ictgroup.com iGATE Global Solutions Phaneesh Murthy www.igate.com Indecomm Global Services  Naresh Ponnapa  www.indecommglobal.com Infosys Technologies  S. Gopalakrishnan  www.infosys.com ITC Infotech   Sanjiv Puri www.itcinfotech.com Kompakar  Dr. Ahmad Fikri Hussein www.kompakar.com KPIT Cummins Kishor Patil www.kpitcummins.com LogicaCMG Andy Green  www.logicacmg.com Longtop  Eric Liang www.longtopinternational.com Luxoft Dmitry A. Loschinin  www.luxoft.com Macadamian Technologies Frédéric Boulanger www.macadamian.com Mastek Sudhakar Ram www.mastek.com Mera Networks Marc Granic www.meranetworks.com Microland Pradeep Kar www.microland.com MindTree Consulting  Ashok Soota www.mindtree.com Nagarro  Vikas Sehgal  www.nagarro.com NCO Group   Mike Barrist www.ncogroup.com Neoris Claudio Muruzabal www.neoris.com Ness Technologies Sachi Gerlitz www.ness.com Neusoft Group  Dr. Liu Jiren www.neusoft.com NIIT Technologies Arvind Thakur www.niit-tech.com Ocwen Financial Corporation William Erbey  www.ocwenbusiness.com Omnitech InfoSolutions Atul Hemani  www.omnitechindia.com Outsource Partners International Clarence T. Schmitz  www.opiglobal.com Patni Computers    N.K. Patni www.patni.com Perot Systems Peter Atlabef www.perotsystems.com Polaris Software Lab Arun Jain www.polaris-america.com Politec HÉlio Santos Oliveira www.politec.com PremierBPO Mark Briggs www.premierbpo.com QuEST Ajit A. Prabhu www.quest-global.com Reksoft Alexander Egorov  www.reksoft.com Sapient Alan Herrick  www.sapient.com Satyam Computer Services  Ramalinga Raju  www.satyam.com Scicom Leo Ariyanayakam  www.scicom-intl.com SECOVA eSERVICES   Venkat Tadanki  www.secova.com Sierra Atlantic  Raju Reddy www.SierraAtlantic.com Sitel  David Garner  www.sitel.com SoftServe Taras Kytsmey www.softservecom.com Softtek  Blanca Trevino  www.softtek.com SPI Technologies  Peter D. Maquera   www.spi-bpo.com Stream Toni Portmann  www.stream.com Sutherland Global Services  Dilip R. Vellodi www.suth.com Symphony Services Gordon Brooks www.symphonyservices.com Syntel Bharat Desai  www.syntelinc.com Tata Consultancy Services S. Ramadorai www.tcs.com Tech Mahindra   Vineet Nayyar www.techmahindra.com Teledirect Laurent Junique  www.teledirect.com.sg TELUS International  Eng Boon Lau  www.TELUSInternational.com Unisys Joseph W. McGrath www.unisys.com Vantage Point Consulting Rahim Osman  www.vpcasia.com Vanceinfo Technologies Chris Chen  www.vanceinfo.com vCustomer Sanjay Kumar www.vcustomer.com Vengroff, Williams & Associates Mark Vengroff  www.vwainc.com Virtusa Kris Canekeratne  www.virtusa.com Wipro Technologies Azim H. Premji www.wipro.com WNS Neeraj Bhargava www.wnsgs.com Zensar Technologies Ganesh Natarajan www.zensar.com   Note: Some companies such as Accenture and Cognizant would have made it to theGlobal Services 100  list, but they did not respond to our survey; Global Services and neoIT 2008 Global Services 100 Study   *Depicted from Global Services

S&T launches Competence Center for SAP Infrastructure Solutions

This move further strengthens the S&T Group’s capabilities & position in the area of core business applications & underlying infrastructure

Zilina, Slovakia, 29 November 2007 — S&T today announced the opening of its SAP Infrastructure Solutions Competence Center in Zilina, Slovakia, designed to demonstrate the benefits and value of joint EMC², IBM and S&T solution offerings especially for SAP customers. The Competence Center (CC) will provide group-wide support for business development as well as consulting, proven solutions and implementation best practice in the area of ECM (Enterprise Content Management), SAP archiving, SAP infrastructure & security solutions on EMC² & IBM platforms. The Competence Center combines the strength of the strategic partnership of S&T, EMC² & IBM to deliver predictable business value to S&T customers. “Our SAP customers expect from us innovative complete solutions which meet business requirements and offer high quality technology as well as comprehensive services and support. S&T in Slovakia also hosts the Competence Center for SAP Outsourcing. The combined power of both Competence Centers enables us to rapidly demonstrate our proven experience”, says Christian Rosner, CEO of S&T Group.

End to End Business Process Management 
The Center focuses on Enterprise Content Management solutions with end-to-end workflows & document management functionalities starting with imaging & capturing and ending with SAP portal integrations, using EMC² Documentum technology. Special focus will be devoted to the archiving of SAP transactional data, print reports & incoming documents. Willem Hendrickx, EMEA Vice President, Channel and Mid-market at EMC², said: “This solution center provides S&T with the necessary tools to deliver increased value to customers through their relationship with EMC². Our commitment to support this Competence Center is at the core of our partner enablement program to help drive more sales opportunities to our loyal partner community.” 

Secure SAP Platforms 
Scalable Infrastructure is an important building block of every IT solution. It needs to effectively support automated operational processes for optimal SAP user experience. Therefore S&T infrastructure architects & consultants will design optimized infrastructure solutions for SAP projects based on IBM and EMC² technologies. The Competence Center will provide infrastructure blueprints, test and laboratory environments as well as training. System Landscape Optimization will leverage concepts such as Virtualization, High Availability, Comprehensive Backup, Data Subsetting and Archiving. Increasing attention in SAP projects is given to security aspects including the design of secure SAP infrastructure, Business Continuity Plans, SAP security audits, SOX and Governance, Risk and compliance concepts. "With the opening of the Competence Center , S&T also emphasizes the importance of its Slovakian subsidiary and its substantial investments also serve to strengthen the economy of the Zilina region", says Vladimir Hric, Managing Director of S&T Slovakia. 

"IBM is collaborating with partners such as S&T, helping them develop solutions that enable SAP clients visualise, virtualise and integrate, maximising the benefits of their IT investments and transforming the way they perform key business processes,” said Bob Moore, Director, Computer Services Industry, IBM Northeast Europe. “We believe that Slovakia plays a very important role in adopting these innovative approaches and in generating best practices which could further help the region's development.” 

The S&T SAP Infrastructure Solutions Competence Center is designed to host a number of activities, including: 

• On-demand solution & infrastructure design
• On-site and remote demonstration of solutions & customer concepts
• Outsourcing activities in the area of SAP archiving
• Migration planning
• Benchmarking and performance testing
• Customer briefings, seminars and workshops
• Training activities

29.11.2007 | Slovakia

http://www.snt.bg/Content.Node/news/pressroom/pressreleases/24235.en.php