Professional Documents
Culture Documents
Tim Blansett
Namit Kapoor
Denton Newham
Naveen Paladugu
Plan to Win
Bridge the Gap
between IT Sourcing
Strategy and Execution
Contact Information
Chicago
Namit Kapoor
Principal
+1-312-578-4502
namit.kapoor@booz.com
Dallas
Denton Newham
Senior Associate
+1-214-712-6608
denton.newham@booz.com
New York
Naveen Paladugu
Associate
+1-212-551-6723
naveen.paladugu@booz.com
San Francisco
Tim Blansett
Partner
+1-415-263-3707
tim.blansett@booz.com
EXECUTIVE
SUMMARY
THE IT SERVICE
DELIVERY MODEL
phasedeveloping proposal
requests, selecting suppliers, and
finally executing the outsourcing
transaction. Instead, some time
should be devoted to designing the
sourcing solution and planning the
transition to the new delivery model.
Having an internal perspective on
the best service delivery model and
how services should be transitioned
reduces implementation risks
and better prepares companies to
negotiate with potential suppliers,
which can dramatically increase
the probability of a successful
outsourcing transaction.
Exhibit 1
IT Sourcing Life Cycle
Sourcing
Strategy
Sourcing Design
and Transition Planning
Sourcing
Execution
- Develop proposal requests
- Negotiate with supplier(s)
- Finalize and sign sourcing
contracts
PLAN TO WIN
Exhibit 2
A Plan to Win Approach to IT Sourcing Design
1
Sourcing
Strategy
Select
Delivery
Models
3
Develop
Transition
Plan
Sourcing
Execution
Prepare
for the RFP
KEY QUESTIONS
Exhibit 3
Sourcing Service Delivery Model Comparison
Staff
Augmentation
Contracted
Activity
Full
Outsourcing
Greater Flexibility
Less Risk
Less Mature
Greater Savings
Potential
More Mature
Definition:
Pros:
- Accountability provider is
accountable for portions of service
delivery and quality
- Accountability provider is
accountable for entire service delivery
and quality
Cons:
Exhibit 4
Potential IT Outsourcing Readiness Measures
Application Readiness Measures
Business
Risk
Process
Maturity
Environment
Stability
Environment
Complexity
Security/
Connectivity
Technology
Standardization
& Currency
Exhibit 5
IT Service Bundle Strategy Factors and Common Bundles
COMMON SERVICE BUNDLES
1
Supplier
Capabilities
Support Bundle
- Help Desk, Desktop, Field Support
- Aligns incentives for optimizing labor between remote and on-site support
- Strong device support suppliers typically possess capabilities in all three areas
Select
Delivery
Models
Buying
Power
Domain to
be Delivered
1
2
3
4
PRACTICAL
ADVICE
10
BRIDGING THE
GAP BETWEEN
STRATEGY AND
EXECUTION
11
Exhibit A
Readiness-Based Application and Infrastructure Sequencing at a Large U.S. Retailer
APPLICATION SEQUENCING
% of Total
Applications
100%
Application
Count
45
The distribution of
readiness scores
and adjustments
for factors such as
major planned
activities and
interdependency
were used to
develop wave
scope
30
15
0
Least
Ready
Most
Ready
Domain
Relative
Transition
Order
48%
24%
0%
Wave 1
Faster
28%
Transition
Risk
Wave 2
Wave 3
Wave 1
Help
Desk
Minimal
< 6 months
Help Desk
(Level 1)
Minimal
< 6 months
Moderate
6-12 months
Data
Center
Significant
> 12 months
Wave 2
Wave 3
Help Desk
(Level 2)
Slower
12
13
Worldwide Offices
Asia
Beijing
Delhi
Hong Kong
Mumbai
Seoul
Shanghai
Taipei
Tokyo
Australia,
New Zealand &
Southeast Asia
Adelaide
Auckland
Bangkok
Brisbane
Canberra
Jakarta
Kuala Lumpur
Melbourne
Sydney
Europe
Amsterdam
Berlin
Copenhagen
Dublin
Dsseldorf
Frankfurt
Printed in USA
2009 Booz & Company Inc.
Helsinki
Istanbul
London
Madrid
Milan
Moscow
Munich
Oslo
Paris
Rome
Stockholm
Stuttgart
Vienna
Warsaw
Zurich
Middle East
Abu Dhabi
Beirut
Cairo
Doha
Dubai
Riyadh
Florham Park
Houston
Los Angeles
Mexico City
New York City
Parsippany
San Francisco
North America
Atlanta
Chicago
Cleveland
Dallas
DC
Detroit
South America
Buenos Aires
Rio de Janeiro
Santiago
So Paulo