EQ STRATEGIC VISION BROCHURE DUTCH

Transcription

Bijgaand presenteren wij u het booklet
‘Strategic Sourcing Visions 2010’, waarin EquaTerra
niet alleen nieuwe cijfers over de Europese
outsourcing markt presenteert, maar ook analyses
heeft opgenomen over onderwerpen die van groot
belang zijn voor de strategische keuzes die met
sourcing samenhangen.
CONTENTS
Introductie
3
Extend, Divide Or Terminate
4
Pan-European Service Provider
Performance and Satisfaction Study
12
Executive Interviews
30
Dutch IT Service Provider
Pulse Surveys Results IQ09
48
Demand And Supply
56
Bundling: Outsourcing Multiple
Business Functions
70
Biographies
80
Introductie
De financiële crisis heerst al weer bijna een jaar. In ons
handelen als consument, manager, ondernemer,
medewerker, speelt deze een belangrijke rol. De situatie
wordt vergeleken met de jaren 30 uit de vorige eeuw.
Aangezien bijna niemand die nog actief in business is deze
heeft meegemaakt, kunnen we niet meer op onze reflexen,
ervaring of instincten rekenen. Alles is nieuw. Dat brengt
een hoop onzekerheid met zich mee.
Een groot verschil met de jaren 30 is de veel snellere wereldwijde
communicatie. Nieuws verspreidt zich razendsnel, er worden veel
meer financieel-economische indicatoren gemeten, er wordt meer
internationaal overlegd. Daardoor kunnen we beter van elkaar leren
en sneller reageren.
Ook deze publicatie wil bijdragen aan het leren van elkaar. EquaTerra
wil als marktleider op sourcingsgebied haar kennis en ervaring met
de markt delen. Centraal staat sourcing. Sourcing gaat over
vraagstukken als de inrichting en het optimaliseren van processen,
het gebruik maken van de markt daarbij, het delen van risico’s, het
richten op eigen kerncompetenties en het gebruik maken van
diensten van externe partijen. Dit zijn strategische vraagstukken.
De beantwoording daarvan kan, zeker in deze tijden, “het verschil
maken”. Aan de hand van marktkennis, ervaring en best practices uit
de EquaTerra-bibliotheek wordt de lezer meegenomen om zijn
eigen gedachten concreet te vormen.
De praktijk van alle dag krijgt een plek in drie interviews. Interviews
op board-niveau uit drie geheel verschillende branches. Met allemaal
als verbindende element: wat betekent de crisis voor jou en voor
jouw organisatie.
De actualiteit wordt verzorgd door de uitkomsten van de Pulse
Survey. Elk kwartaal houdt EquaTerra wereldwijd en regionaal de
vinger aan de pols in sourcingland. De belangrijkste conclusies en
trends worden beschreven.
Daarmee zijn we voor dit moment even rond en moeten we weer
keihard aan de slag. Sourcingsvraagstukken zullen op de agenda van
elke Raad van Bestuur staan om een bijdrage te leveren aan het
bestrijden van de gevolgen van de crisis. Het mogen dan onzekere
tijden zijn, het zijn natuurlijk ook enorm boeiende tijden. Over een
paar jaar zijn er ongetwijfeld T-shirts te koop met als opdruk “I
survived the crisis”. Dit boekje kan daar zeker aan bijdragen.
Nico Boot
Executive Director, Europe & Asia Pacific
3
If the decision to extend or
terminate the contract is taken too
hastily, possible opportunities may
be missed, or the solution may be
worse than the problem. It’s never
too soon to think about the end of
a contract and its consequences.
AUTHORS: Nico Boot,
Executive Director, Europe and Asia-Pacific
Paul Cornelisse,
Managing Director, Information
Technology Advisory, The Netherlands
EXTEND, DIVIDE OR TERMINATE
The Three Options
When a Contract Ends –
Extend, Divide or Terminate
When an outsourcing contract comes to an end, a decision has
to be made. Do you extend the contract in its current form or do
you decide to end the contract with the current service provider
and either divide or terminate it? Whatever the decision, when a
contract comes to an end it offers the opportunity to take a
critical review of an outsourcing arrangement. If the decision to
extend or terminate the contract is taken too hastily, possible
opportunities may be missed, or the solution may be worse than
the problem. It’s never too soon to think about the end of a
contract and its consequences.
The Three Options
1. Re-let the contract to the current service provider
If criteria such as end-user satisfaction and service level agreements are
being met, the current agreement with the service provider may be
extended, with any necessary amendments being included in the new
contract to ensure that it will be fit for purpose going forward. After the
terms have been renegotiated and a new contract drawn up, the changes
required to help deliver optimum results can then be implemented.
2. Division of the contract
The decision could also be taken to transfer part of the responsibilities to
one or more alternative service providers. This could happen because the
current service provider has failed to deliver particular services to the
client’s satisfaction, or alternatively the provider could have decided to
remove certain services from its portfolio. Conversely, client requirements
may have changed to such an extent that a service provider with a
different area of expertise is now required. In the event of a contract
being divided, it is quite possible that the client will bring elements of the
outsourced services back in-house.
3. Terminate the contract
There are instances where one or both parties will decide to end the
relationship and contracts are terminated. In such a situation an ‘exit’
takes place which ensures that services are transferred to the new
service provider or back to the organisation itself. A complete exit strategy
should be developed and the associated transition should be guided by
experienced staff or an advisor.
5
A Road Map for Contract Re-letting
In theory, and ideally, a suitable re-let strategy should be put in place at
least nine months prior to the contract ending. Figure 1 gives a broad
outline of the timing and the activities involved. Of course, should the
strategy be to renegotiate the contract with the existing service
provider, timescales may be reduced.
FIGURE 1: MAP FOR THE RE-LET PERIOD
Sourcing Decision Point
Contract Ends
12 to 9 months prior to
the contract ending
9 to 6 months prior to
the contract ending
Adapt the sourcing strategy and
put in place a re-let strategy
Implement the chosen
re-let strategy
Up to 9 months after
the contract ending
Extend
Sourcing Review
Final annual review of the strategy
and exit plan and check on the
contractual conditions
The scope of the service delivery,
provided by the current service
provider, either doesn’t change or not
significantly.
Change and Improve
Implement a change programme
based on new agreements with the
current service provider
Renegotiations will only take place
with the current service provider.
Looking Ahead
Divide
What does the business require
from us, and what technological
changes do we see?
The scope of the service delivery,
provided by the current service
provider, changes in a structural way,
and operations are (sub-)divided.
Negotiations will take place with the
current service provider and parts of
the services will either be transferred
to the organisation itself, or there will
be a new tender to select (a) new
service provider(s).
Looking Back
What has the contract provided over
the last few years?
Transition
Transfer of (parts of the) service
delivery from the current to the
new service provider(s) or to the
organisation itself
Terminate
Change Need and Gap
What needs to be changed in the
current relationship, what
disparities exist between the
current agreement(s) and the new
requirements(s), and how
are we going to close that gap?
6
The service delivery, provided by the
current service provider, ends. Based
on the exit plan, the contract with the
current service provider will be
terminated, and the services will
either be transferred to the
organisation itself, or there will be a
new tender to select (a) new service
provider(s).
Exit
Formally end the relationship with
the current service provider
Basis for Decision Making: The Contract Review
A service provider
who isn’t challenged to
make improvements will
very often be satisfied
with only average
achievements.
Most organisations make the mistake of drawing up new contracts
based on negative experiences in the past. The best way to
determine the most appropriate option when a contract comes to
an end is to carry out the final annual review of the sourcing strategy,
look ahead at future needs and look back at what has been provided
throughout the life of the contract. Objective decisions can then be
made regarding whether to continue (and potentially extend), divide
or terminate the contract with the current service provider.
In addition to involving business management, don’t forget to
involve the service provider in the re-let process and to carry out
parts of the analysis together. Very often the service provider has
information which the organisation doesn’t have itself. It’s also
beneficial to know how the service provider views the contract
period that has just passed and what they have learned from it.
The key to outsourcing success is governance. This doesn’t just mean
rules and procedures, but more specifically, the desire to improve
service delivery. A service provider who isn’t challenged to make
improvements will very often be satisfied with only average
achievements. In such a situation, it’s important to review the
relationship regularly, (at least once a year).
FIGURE 2: DEMAND AND SUPPLY
Retained
The Demand Organisation
Business
Management
Demand
Management
Outsourced
The Supply Organisation
Supply
Management
Internal
Delivery
External
Delivery
7
A Look Ahead: What do we Need?
Being able to recognise potential areas of change is vital. Only then is
it possible to pinpoint disparity between current services and those
services necessary in the future, and realise the full benefits of the
contract. During this phase, it’s important to think strategically about
the current and future needs of the business rather than simply
delivering existing service levels as efficiently as possible.
The analysis steps in Figure 3 clearly show that the re-let strategy is
not driven in the beginning by the current contract and service
provider, but by the company-wide sourcing strategy and the service
provider strategy. It’s therefore important to be aware of how the
expiring contract compares to other outsourcing relationships within
the organisation. Thinking from within the current framework of the
existing contract very often leads to a less than ideal solution.
FIGURE 3: FROM COMPANY STRATEGY TO RE-LET STRATEGY
Company Strategy
Governance
Opportunity
Analysis
Business
Case
Sourcing
Strategy
Vendor
Strategy
Re-let Strategy
8
Three Critical Questions When Looking Ahead
Without a long
term business plan in
place, it is possible that
after signing the contract
a disparity is found to exist
between the services
bought and the actual
services required.
1. Does the current service provider fit into the company
strategy?
The capabilities of the service provider need to be able to
accommodate future company strategy. Can the service provider be
relied upon in unexpected circumstances? In the majority of cases,
developments follow one another in quick succession, which means
that the service provider should be able to adapt quickly.
2. Is there sufficient connection between the current
contract and the latest developments in the market?
It is important to assess to what extent the service provider is able to
implement both the technical advances and best practices of the
market into the current contract. Does the contract provide
sufficient possibilities to be able to realise the additional benefits?
Secondly, be sure to review the contract for global risk and supplier
financial viability. The review should take into account service delivery
location risks, related contractual commitments and the supplier’s
perspectives.
3. Is there a well thought out long-term plan for the
organisation?
Without a long-term business plan in place, it is possible that after
signing the contract a disparity is found to exist between the services
bought and the actual services required. This can result in a weak
negotiating position for the client.
Looking Back: What has the Contract Delivered?
When a contract approaches the point of termination it’s necessary
to review performance levels both internally and with the service
provider. It is important to quantify whether original objectives have
been achieved, and if not, why not? In situations where the contract
is to be terminated because the relationship with the service provider
has not been successful, the causes can be the fault of the service
provider, but can also be from within the client organisation. By
asking a few simple questions it’s possible to get to the root causes.
9
Three Critical Questions When Looking Back
1. Is the organisation happy with the current service provider?
This would appear to be a simple question, but in reality the answer is
usually based on a gut feeling. To understand the level of satisfaction
within the client organisation, sufficient data gathered from the various
user groups over the period of the contract needs to be available. It
could be that the client-side manager of the relationship wasn’t
satisfied with the service provider, but the end users were happy with
the level of service delivered.
2. Does the organisation have the right competencies and
skills available in order to be able to manage the contract and
service provider?
The success or failure of outsourcing contracts is, to a large degree,
dependent on good management and the governance structures
which have been put in place. Without these competencies and skills
it’s difficult to create a good re-let strategy and it’s most definitely a
mistake to think that simply changing the service provider will lead to
better results.
3. Re-evaluating the business case
The end of the contract is a good time to once again take a look at the
original business case. In retrospect, how realistic was this and what
areas of improvement should be included in the new agreements? For
example, there may be issues relating to the amount and type of extra
work which falls outside the contract.
The Importance of a Re-Let Strategy
Your organisation should take the time to prepare for the end of a
contract, primarily because the failure or success of an organisation
depends on essential functions such as IT support. Even if the current
contract allows for the carrying out of changes, it still makes sense to
look at the ways in which the next contract can be improved. The
chosen re-let strategy also plays an important role in how companies
can differentiate themselves in the market through having a lower
cost base or unique service. At the same time, there are not only
opportunities but also risks to be considered, such as in the areas of
business continuity and security.
Another consideration is that the necessary competencies in the
area of IT change rapidly. When a contract comes to an end, this
creates the opportunity to include the latest developments in
sourcing strategy into the contract, so an understanding of what the
market is currently offering is vital during negotiations.
The success or
failure of outsourcing
contracts is, to a large
degree, dependent on
good management
and the governance
structures which have
been put in place.
While it is important to have a re-let strategy, it is equally important
to allocate enough time for it to be implemented. When a final
decision has been reached to terminate service delivery, then
alternatives have to be found. This takes time, as does a well
organised transition to a new provider.
All organisations that outsource certain activities will be faced with
the decision to either extend a contract with the current provider or
to divide or terminate it. This is a time when many important issues
have to be considered, so good preparation is essential to avoid the
risks and enjoy the benefits that this period of change creates.
This article is a translation and summary of an article developed together
with Sven van de Riet, researcher at Giarte.
The findings from this
analysis reveal the trends that are
emerging across the European
sourcing arena as organisations
more aggressively seek to reduce
costs, defer or limit future
investments, and realign
operating models to lower
revenue levels.
AUTHORS: Anton Joha,
Research Director, EquaTerra Europe &
Asia Pacific
Stan Lepeak, Managing Director,
Global Research, EquaTerra and EquaSiis
12
PAN-EUROPEAN SERVICE PROVIDER
PERFORMANCE AND SATISFACTION STUDY
Analysing and Interpreting
IT Outsourcing Trends and
Satisfaction Levels Across
Western Europe
Since 2003, each year, EquaTerra has undertaken a series of
comprehensive market research studies on information
technology outsourcing (ITO) service provider performance
and satisfaction (SPPS) across Western Europe. Specific
markets targeted include Belgium and Luxembourg, the
Nordic region (Denmark, Finland, Norway, and Sweden), the
Netherlands and the United Kingdom.
This market study programme surveys and interviews buyers currently
actively engaged in outsourcing efforts with a named set of
leading market specific providers.
Recognised as the most extensive and representative ‘perception
study’ on the issues of Information and Communication Technology
(ICT) sourcing in the marketplace today, the research provides direct
insights into buyer opinions on service provider performance levels,
and also assesses and interprets general outsourcing demand and
activity trends in the markets covered.
EquaTerra has integrated its 2009 country-specific study results to
create this pan-European ITO service provider satisfaction and
performance market study. This roll-up study encompasses more
than 1500 evaluated outsourcing contracts equating to an overall
annual contract value of more than €15 billion.
13
The research was conducted between the autumn of 2008 and
summer 2009, therefore during the height of the economic
downturn that significantly impacted markets and economies
worldwide. The findings from this analysis reveal the trends that are
emerging across the European sourcing arena as organisations more
aggressively seek to reduce costs, defer or limit future investments,
and realign operating models to lower revenue levels.
In this article we provide an overview of the results.
Outsourcing Demand: Still Strong and Growing
• Almost 90 percent of the participants indicated that they currently
outsourced their Infrastructure Management (IM), followed by
Application Management (AM) at 71 percent and End-User
Management (EUM) which is outsourced by 57 percent of all
participants.
• Fifteen percent of the respondents are currently planning to
outsource (parts of) their AM, while 12 percent of the respondents
plan to outsource (parts of) their IM and EUM (see Figure 1).
• Just two percent of the participants have no plans to outsource IM.
Of the remainder, 14 and 31 percent respectively do not plan to
outsource either AM or EUM services. The numbers of buyers with
no plans to outsource any of their IT operations has declined over
the past year, in part as a result of deteriorating economic market
conditions.
14
FIGURE 1: WHICH OF THE FOLLOWING PROCESSES ARE CURRENTLY OUTSOURCED BY YOUR ORGANISATION?
2%
Process outsourced
Plans to outsource
Not outsourced, no plans
14%
11%
15%
71%
APPLICATION MANAGEMENT
87%
INFRASTRUCTURE MANAGEMENT
31%
57%
12%
END USER MANAGEMENT
Application Management: Application development, systems
integration, functional application management and maintenance,
test management etc.
Infrastructure Management: Application hosting/data centre,
technical application management and maintenance, security
management, external networks (WAN, external telco) etc.
End-User Management: Internal networks (LAN, data/voice to the
end user), file print and mail servers, workplace management services
(desktop), workplace support services (help and service desk) etc.
15
Offshoring: More Companies are Planning to Offshore
Approximately 50 percent of respondent organisations are engaged in
offshore outsourcing. The UK is ahead of the other European regions in
terms of adopting offshore outsourcing, while the Netherlands lags the
furthest behind.
Buyer adoption of offshore outsourcing will continue to grow. Between 60
and 75 percent of all respondents, depending on the European geography,
are planning to offshore more Application Management (AM) work. For
Infrastructure Management (IM) the percentages are between 55 and 65
percent. The differences in growth of offshoring End-User Management
(EUM) are larger: it is expected to grow most in the Netherlands (63
percent) and least in the Nordics (33 percent).
FIGURE 2: IN THE FUTURE, DO YOU EXPECT THERE TO BE CHANGES TO YOUR NEAR OR OFFSHORE STRATEGY?
5%
5%
Increase
Same
27%
37%
68%
APPLICATION MANAGEMENT
58%
INFRASTRUCTURE MANAGEMENT
7%
45%
48%
END USER MANAGEMENT
16
Decrease
Governance: Buyers’ Governance Skills to Manage the
Service Provider are Weak
More than 50 percent of the organisations polled in the study
indicated that their outsourcing governance skills are weak/average.
When we compare the different regions, it is noticeable that the
Netherlands in particular had poor governance skills, with only 38
percent of the organisations responding that their skills are
good/excellent.
FIGURE 3: HOW WOULD YOU QUALIFY THE OVERALL SKILLS/ COMPETENCE OF YOUR ORGANISATION TO
MANAGE YOUR EXISTING OUTSOURCING PROVIDERS?
6%
Excellent
5%
5%
8%
Good
Average
45%
44%
41%
46%
Weak
BELUX
NORDICS
9% 10%
3%
13%
35%
39%
UK
42%
49%
NETHERLANDS
17
Governance: Industry Perspective
When looking from an industry-perspective at the governance quality,
we can see that all industries have an average score between 2.2 and
2.7 (1 = Weak; 2= Average; 3= Good; 4=Excellent). The overall average
is 2.4.
FIGURE 4
Business Services/Consulting,
Construction, Engineering
Government (central/local)
Education, Non-profit
Entertainment/Media, Hospitality
2.2
2.2
2.3
Pharma/Biotech/Life Sciences
2.4
2.4
Consumer Packaged Goods,
Food/Beverages
Banking, Financial Services,
Insurance
2.4
Telecommunication
2.4
Energy/Utilities, Oil & Gas
2.4
4.0
3.5
GOOD
18
2.6
Transportation & Logistics
2.6
Automotive
2.6
Retail, Wholesale
2.6
Chemicals, Minerals,
Natural Resources
2.7
Manufacturing
2.7
Healthcare Providers
2.7
High Tech Products/Services
3.0
2.5
AVERAGE
2.0
1.5
WEAK
1.0
Governance: Regional Perspective
Noticeable however are the industry differences per region. In Belgium
for example, there are no industries performing either very well, or
very badly. The government sector is on top of the list, followed by the
Energy/Utilities, Oil & Gas and Healthcare Providers. In the Netherlands,
there are bigger differences, and the Government is on the bottom of
the list here (as is Consumer Packaged Goods, Food/Beverages).
Telecommunication and Transportation & Logistics are ranked
number one in the Netherlands in terms of governance quality.
FIGURE 5
BELUX
2.6
NETHERLANDS
2.5
NORDICS
3.0
UK
2.8
2.4
2.0
2.2
2.3
Retail, Wholesale
Telecommunication
2.3
2.1
2.4
2.5
2.4
2.9
2.6
3.0
2.5
2.9
2.3
2.1
Insurance
2.3
2.4
2.4
2.4
2.4
2.9
2.2
2.5
Government (central/local),
2.8
1.8
2.4
2.4
Natural Resources
2.5
2.5
3.1
2.1
Automotive
2.4
2.3
2.6
2.7
2.5
2.3
2.9
3.1
2.5
N/A*
N/A*
2.4
Food/Beverages
2.5
1.9
2.5
2.7
Manufacturing
2.5
2.5
2.7
2.3
2.7
N/A*
2.8
1.8
0.5 or more pts below Average
0.5 or more pts above Average
*Insufficient evaluations
19
In the Nordic region most industries have good quality governance in
place, and there are no really bad scores. In the UK, two industries
stand out, one positively (Retail/Wholesale) and one negatively
(Entertainment/ Media, Hospitality).
General Satisfaction
Overall respondents remain satisfied with the quality of the services
they are receiving from their service providers across all IT process
areas. Seventy percent of all respondents are satisfied with their
service provider in terms of general satisfaction.
FIGURE 6: MARKET SATISFACTION ACROSS ALL CONTRACTS
2% 5%
9%
19%
Very satisfied
Satisfied
36%
Somewhat satisfied
Somewhat unsatisfied
29%
GENERAL SATISFACTION
Unsatisfied
Very unsatisfied
The following provides a ranking of select ITO service providers
based on the satisfaction levels registered by their clients. In order to
rank the service providers active in Europe, EquaTerra identified the
top 20 service providers operating in either three or more regions.
Figure 7 shows the general satisfaction with service providers
operating in Europe.
20
FIGURE 7: GENERAL SATISFACTION WITH OUTSOURCING
69%
68%
68%
68%
67%
Infosys
Cognizant
TCS
Wipro
Unisys
HCL
Accenture
Capgemini
Siemens
Fujitsu-Services
Logica
IBM
CSC
Steria/Xansa
EDS
T-Systems
HP
BT
Atos Origin
Getronics
63%
63%
63%
62%
61%
61%
60%
60%
60%
59%
57%
54%
52%
51%
48%
0
10
20
30
40
50
60
70
80
HP and EDS evaluated separately.
Indian based service providers dominate the general satisfaction charts:
five out of the top six service providers for general satisfaction are Indian
based, with Unisys the only non-Indian provider in the top rankings.
There are significant variations in scores between the individual service
providers on the country-level. There are examples of service providers
ranked first in one country and ranked last in another. This highlights
the very situational nature of outsourcing service provider performance
both in terms of actual capabilities and buyer perception of quality.
21
General Outsourcing Satisfaction by Industry
There are big differences in the scores between the first and last
ranked service providers in Begium and Luxembourg, The Netherlands
and the United Kingdom. However this is not the case in the Nordics,
where the differences between providers ranked in the region are
relatively very small.
FIGURE 8: GENERAL OUTSOURCING SATISFACTION BY INDUSTRY
68%
67%
Automotive
64%
63%
Manufacturing
62%
Natural Resources
62%
62%
Telecommunication
62%
Insurance
60%
60%
Retail, Wholesale
59%
58%
Food/Beverages
57%
56%
54%
80
22
70
60
50
40
30
20
10
0
General Outsourcing Satisfaction by Industry and Country
The High Tech Products/Services and Automotive industry are on top of
the list with a general service provider satisfaction score of 68 and 67
percent respectively. On the bottom of the list are Business Services/
Consulting, Entertainment/Media, Consumer Packaged Goods and
Government. The most satisfied industry groups are for the most part
those that have done the most IT outsourcing, highlighting that
experience and tenure are key factors in driving satisfaction. When we
make the same analysis for the industries at a country level, we see yet
more differences. In Belgium for example, Government is in the top three
industries that are generally satisfied with their service providers, while
the government’s satisfaction level in the Netherlands is only 47 percent.
FIGURE 9: GENERAL OUTSOURCING SATISFACTION BY INDUSTRY AND COUNTRY
BELUX
NETHERLANDS
NORDICS
UK
70%
47%
65%
64%
63%
45%
62%
N/A*
60%
50%
60%
58%
65%
58%
68%
52%
56%
55%
68%
73%
57%
61%
69%
57%
Insurance
72%
53%
68%
62%
55%
56%
69%
52%
Natural Resources
63%
57%
64%
64%
69%
59%
77%
N/A*
68%
44%
N/A*
61%
65%
50%
66%
53%
Food/Beverages
63%
44%
51%
65%
61%
76%
52%
65%
63%
60%
69%
N/A*
Retail, Wholesale
Telecommunication
Automotive
Entertainment/Media,
Hospitality
Manufacturing
*Insufficient evaluations
23
The studies assess outsourcing buyer satisfaction across a total of
eight Key Performance Indicators (KPIs). The table below details the
five main KPIs for this study.
KPIs
QUALITY
PRICE
Description of the KPI
In general, the service
provider meets the service
levels as set out in the Service
Level Agreement
The prices the service
provider charges for its
services are (still) in line with
current market price
Average KPI score
(Based on the top 20 service
providers operating in either
three or more regions)
Overall the best scoring KPI,
with an average of
66 percent satisfaction.
No bad scores, with the
lowest score being 58 percent
Overall the second best
scoring KPI, with an average of
64 percent satisfaction. There
are no bad scores (the lowest
is 56 percent), implying that
on average the price/quality
ratio is in balance
Highest score on European level
74 percent
76 percent
Highest score on country level
(Includes local service
providers)
BeLux:
81%
Netherlands: 85%
Nordics:
72%
UK:
83%
BeLux:
Netherlands:
Nordics:
UK:
Lowest score on country level
(Includes local service
providers)
BeLux:
62%
Netherlands: 49%
Nordics:
57%
UK:
56%
BeLux:
61%
Netherlands: 47%
Nordics:
55%
UK:
51%
Top 5 service providers in the
European report
1 Unisys
2 Wipro
3 Siemens
4 HCL
5 CSC
1 TCS
2 Wipro
3 HCL
4 Infosys
5 Siemens
24
81%
74%
80%
78%
RISK
INNOVATION
OPERATIONAL RELATIONSHIP
The service provider shoulders
reasonable commercial risk and
makes necessary investments
to reduce that risk
The service provider actively
identifies innovation
opportunities
The service provider does a
good job actively managing
the relationship at the
operational level
Overall the fourth best scoring
KPI, with an average of 56
percent satisfaction. There are
eight service providers with a
score below the 55 percent,
and three with a score below
50 percent
Overall the worst scoring KPI,
with an average of 51 percent
satisfaction. There are only
two service providers with a
score above 55 percent, and
six service providers have a
score below 50 percent
Overall the third best scoring
KPI, with an average of 62
percent satisfaction. There are
2 service providers with a
score below the 55 percent.
67 percent
62 percent
70 percent
BeLux:
Netherlands:
Nordics:
UK:
73%
65%
66%
83%
BeLux:
Netherlands:
Nordics:
UK:
70%
70%
63%
64%
BeLux:
77%
Netherlands: 88%
Nordics:
70%
UK:
83%
BeLux:
Netherlands:
Nordics:
UK:
54%
34%
44%
48%
BeLux:
Netherlands:
Nordics:
UK:
40%
38%
42%
35%
BeLux:
59%
Netherlands: 43%
Nordics:
52%
UK:
55%
1 TCS
2 Siemens
3 Wipro
4 Cognizant
5 HCL
1 Wipro
2 Accenture
3 Siemens
4 TCS
5 T-Systems
1 Wipro
2 Infosys
3 Capgemini
4 TCS
5 Siemens
25
General Satisfaction versus Governance Quality
The SPPS studies reinforce findings from both EquaTerra research as
well as client experience that there is a strong correlation between
buyer satisfaction and outsourcing governance capabilities. Those
buyers who rated their outsourcing governance capabilities as
excellent, were generally very satisfied with the performance of their
service providers, with a 70 percent satisfaction score; whilst those
buyers who assessed their outsourcing governance capabilities as
weak appear to be significantly less satisfied with their service
providers, and only had a 53 percent satisfaction score.
FIGURE 10: SATISFACTION WITH OUTSOURCING VERSUS THE GOVERNANCE QUALITY
26
Conclusions
The European analysis of the outsourcing market shows interesting
variations between outsourcing trends and service provider
performance across countries, outsourcing satisfaction across
industries, and differences between Indian, local and global suppliers.
Key highlights are:
• Demand for outsourcing remains strong and growing across all
major Western European markets
• The use of non-local or ‘offshore’ outsourcing is increasing and will
continue to grow across Western Europe, though adoption rates
vary by market
• Buyers are, in general, satisfied with the performance of their
service providers which is the main driver for increased use of
outsourcing
• The outsourcing service provider landscape across Western
Europe is very competitive. While Indian based service providers in
general score well in terms of client satisfaction, local and regional
players also excel in certain markets in service areas like End-User
Management. It is critical to interpret any buyer satisfaction scores
in the context of the specific service being provided
• Satisfaction levels correlate to buyers own capabilities, especially in
the area of outsourcing governance and management
• Buyer satisfaction levels with outsourcing services vary across
industries though in general buyers with more extensive
outsourcing experience are more satisfied
27
About EquaTerra's Service Provider Performance and
Satisfaction Study
EquaTerra’s Service Provider Performance and Satisfaction
Research is a Perception Study
This study focuses on the perceived quality of relationships between
clients and outsourcing service providers of large business-critical
contracts. This study does not represent the opinion of EquaTerra on
the skills, capabilities or performance of any of the outsourcing
service providers covered in the research. EquaTerra conducts the
market research, but the findings represent the opinions of the clients
of the service providers.
EquaTerra is solely responsible for defining the profile of the
outsourcing contracts and selecting the buyer organisations that
participate and the service providers that are evaluated in this
research. The study does not seek to establish anything as absolute
fact but to report upon the feelings and broader perceptions of key
decision-makers regarding the services supplied by some of the
market’s most important outsourcing service providers. The rankings
included in the study are solely based on the feedback received in
the market study from the clients polled. They are not based on any
market metrics such as deals won, revenue, profitability or growth
levels. The rankings are not based on the opinion of EquaTerra, its
management, or advisors.
This study is conducted with senior management or C-level executives
with influence over corporate strategy and third party services
decisions. All participants in the study are responsible for the
outsourcing strategy within their organisation. Participants in the study
are asked to rate their outsourcing service providers on a selection of
key criteria. They only rate those providers that are currently actively
delivering services to their organisation. Participation in the study is on
the basis of strict confidentiality. In line with this, the absolute privacy
of the respondents is guaranteed, and the research process ensures
anonymous use of all aggregate data, information and comments.
28
Service providers rated in the study vary by size, service portfolio and
client portfolio. The different providers all have a varying focus on
distinct functional and process areas, making it not only difficult but
almost impossible to compare “apples with apples”. The minimum
number of participants required for each service provider in the study
guarantees that the service provider scores reflect the opinion of a
representative client group and not the opinions of individuals. The
scores for each provider also represent similar seniority across many
contracts, so that no contract or relationship can unfairly impact
the score.
29
De ‘maatstafregulering’
van de Energiekamer is gericht
op efficiëntie en is geen
stimulans om te investeren in
duurzaamheid en innovatie.
René Oudejans,
CFO, Enexis
EXECUTIVE INTERVIEW
Enexis wil zijn IT koelbloedig
innoveren
Met een sterk afgezwakte weergave van de werkelijkheid,
stelt Enexis’ financieel bestuurslid René Oudejans dat Enexis
‘niet midden in de marktwerking zit’. Daarmee bedoelt hij
dat negentig procent van Enexis’ inkomsten zijn
gereguleerd, met opgelegde prijzen, voor klanten die niet
weg kunnen, zelfs al zouden ze dat misschien willen, omdat
ze nu eenmaal aan de elektriciteits- of gasleidingen van
Enexis zijn gekoppeld. De gedachte aan Enexis’ marktpositie,
doet Monopoly-spelers likkebaarden. Maar Oudejans moet
het spel misschien wel commerciëler spelen dan ooit.
Enexis beheert de gas- en elektriciteitsaanluitingen van 2,5 miljoen
huishoudens, bedrijven en overheden in Noord-, Oost- en ZuidNederland, en heeft de zorg voor het onderhoud, de uitbreiding
en de vernieuwing van de netwerken. Landelijk netbeheerder
Tennet, heeft de hoogspanningsdelen van Enexis overgenomen.
Regionaal netbeheerder Enexis blijft de midden- en
laagspanningsdistributienetwerken, en de gasnetwerken verzorgen.
‘Doen!’
De liberalisering van de energiemarkt, begin 2000, betekende dat
overstappen van energieleverancier mogelijk werd. Nieuwe
aanbieders moesten op de netwerken worden toegelaten (‘Ik zeg
doen!’). Dit was pas de opmaat naar de door Europa ingegeven
splitsingswet die de energienetwerken loskoppelde van het
productie- en leveringsbedrijf. De energieaanbieders konden
daarmee worden verkocht: een ontwikkeling waarmee Nederland
zodanig ver voorop loopt in Europa, dat het de nodige scepsis
oplevert. Zodoende is Enexis nu de verzelfstandigde en
onafhankelijke gas- en elektriciteitsnet-beheerder van
energieaanbieder Essent, waarop het Duitse RWE zijn oog heeft laten
vallen. Net als in het bankwezen, is er geen nationale kampioen
ontstaan uit een fusie van Essent en Nuon.
31
EXECUTIVE INTERVIEW
Projectontwikkelingen
Een beperkt percentage van Enexis’ inkomsten, komt uit nieuwe
aansluitingen en netuitbreidingen in nieuwbouwwijken en op
bedrijfsterreinen. ”Die activiteiten worden onzeker als gevolg van de
economische recessie”, zegt Oudejans. ”Onze pijplijn zit nog vol,
maar architecten voelen hem al en na de bouwvak zal ook de bouw
een terugval laten zien. We anticiperen daarop door de voordelen
van onze flexibele schil van aannemers en inleners te benutten.”
Waakhond
De Energiekamer is de waakhond van de Nederlandse energiesector
en een afdeling van de Nederlandse Mededingingsautoriteit (NMa)
van het ministerie van Economische Zaken. Tot de zeventiger en
tachtiger jaren, heeft Enexis als gevolg van de groeiende bevolking en
economie, nog veel geïnvesteerd in haar netwerken. Maar de
‘maatstafregulering’ van de Energiekamer, beloonde de goedkoopste
van de sector als de beste, wat geen stimulans betekent voor
toekomstgerichte investeringen in de netwerken.
Risicoprognoses
Oudejans: ”Vóór de splitsing van Essent, werden we als een onderdeel
van een commerciële groep gezien. Maar inmiddels zijn we weer een
echt nutsbedrijf en worden we als een maatschappelijk bedrijf
beschouwd. Onze risicomanagers rekenen aan storingen, typen
storingen en storingen aan componenten en maken prognoses van
de aankomende storingsgolven op onze netten en doen op basis
hiervan investeringsvoorstellen, waardoor de betrouwbaarheid van
onze netten ook op langere termijn op niveau blijft.”
Innovatie
”Daarnaast neemt innovatie van onze elektriciteits- en gasnetwerken
de laatste jaren een grote vlucht: we investeren naast de
betrouwbaarheid van onze netwerken ook in innovatie, om de netten
in te richten voor tweerichtingsverkeer, nu particulieren en bedrijven
op grote schaal decentraal stroom opwekken met bijvoorbeeld
zonnepanelen en die mogen aanbieden aan de netbeheerder.”
Oudejans zoekt naar de balans tussen betrouwbaarheid, duurzame
innovatie door een ‘slimme volger’ te zijn, en betaalbaarheid. Maar de
32
‘Enexis is op
zoek naar balans tussen
betrouwbaarheid,
duurzame innovatie en
betaalbaarheid’.
EXECUTIVE INTERVIEW
harde realiteit is dat Enexis in de huidige reguleringsperiode van 2008
tot en met 2010 een efficiëntiekorting van vijf tot acht procent per
jaar heeft opgelegd gekregen.
Kernactiviteiten
In zijn rol als CFO, is Oudejans verantwoordelijk voor het financiële
bestuur, de stafafdelingen en de niet-gereguleerde activiteiten van
Enexis. Daarmee valt de IT van Enexis geheel onder hem. Over het
waarom daarvan, kan hij kort en duidelijk zijn: ”Als negentig procent
van de uitgaven in onze energienetwerken zitten, dan past IT, als nietkernactiviteit, prima bij de CFO-functie. IT moet de kernactiviteiten
ondersteunen en geen gekke dingen doen.”
Nering
Bij de boedelsplitsing met Essent, zijn de bezittingen en schulden
verdeeld. Maar de IT-diensten moeten nog worden afgesplitst en
betrekt Enexis voorlopig nog van Essent. In de tijd van het
geïntegreerde bedrijf, heeft Essent die uitbesteed aan IBM.
Synergie
”De splitsing heeft geleid tot de gezochte transparantie in de
energieleveringsketen en voor de borging van leveringszekerheid,
maar de synergievoordelen zoals bij IT zijn ook weg”, zegt Oudejans.
Daarbij heeft Enexis wel geleerd van de liberalisering, begin 2000, om
eerst te wachten op een politieke eindvisie, alvorens te investeren en
te bouwen. Komt bij dat IT, als gezegd, geen kernactiviteit is en dat
Oudejans ook hier een ‘slimme volger’ wil zijn. Met enige scepsis zegt
hij: ”We worden niet beloond om de hoofdprijs te betalen voor
verkeerd ingevoerde veranderingstrajecten. IT moet rustig faciliteren.
Wat we niet in eigen huis hoeven te doen, besteden we uit.”
Aansluitregister
Enexis’ IT-systemen laten zich in drie categorieën splitsen. In huis
wordt sinds een jaar gebouwd aan de visualisatie van het Geografisch
InformatieSysteem met liggingsgegevens van de leidingen voor de
monteurs. Enexis heeft geen IT-netwerk gebouwd voor de
verbindingen met de mensen in het veld, maar rekent daartoe op het
draadloze netwerk van Vodafone.
33
EXECUTIVE INTERVIEW
De kantoornetwerken op de vijftien vestigingen zijn in de Essent-tijd
uitbesteed geraakt bij IBM. Bij het volledig doorvoeren van de splitsing,
wil Oudejans ze weer naar binnen halen bij Enexis, om ze opnieuw uit
te besteden.
De derde categorie, is het klantrelatiesysteem in SAP ISU, dat ook de
relatie met de aansluitingen administreert. Hier staan spannende
zaken te gebeuren. Oudejans: ”Dit systeem wordt onderhevig aan
wijzigingen in het marktmodel. Klanten hebben volledige
keuzevrijheid en rekenen zowel het leverings- als ook het
netbeheerdersdeel (de vaste capaciteitsvergoeding) af met de
leverancier. We hebben dus interfaces met de verschillende
leveranciers nodig. Eigenlijk willen we toe naar een sectorbrede
aanpak, met een centraal aansluitregister dat netwerkklanten met hun
aansluitgegevens aan leveranciers bindt, met uitwisselingsafspraken
die we opstellen in afstemming met de collega-netbeheerders. Daar
denken we al anderhalf jaar over na, het functioneel ontwerp is klaar,
maar we gaan pas bouwen als de politiek uitgesproken is.”
Regie
Verbeteringen komen uit processen op de werkvloer, niet uit
systemen, doceert Oudejans de ‘LEAN’-filosofie. Bij het heruitbesteden
van de werkplekken (zowel kantoor als buitendienst), technisch
applicatiebeheer, het WAN en de hosting van het datacenter, wil hij de
regie dan ook strak in eigen hand houden, met externe begeleiding
voor de voetangels en klemmen in het traject. ”Wat hadden we met
Essent, wat willen we zelfstandig hebben, hoe vinden we de balans
tussen kosten en kwaliteit? Hoe benutten we de innovatiekracht van
leveranciers? Welke looptijd voor het contract is optimaal?” Enexis
heeft zich door de markt over het aanbod laten informeren en heeft
inmiddels offertes aangevraagd.
Controle
”In de huidige situatie kan Enexis een speelbal worden van de splitsing
en de marktbewegingen. We willen zelf de controle bewaren en
willen onze verandercapaciteit dan ook tot het maximum beperken.
We doen goed en slim wat we moeten doen, maar willen verder géén
experimenten.”
34
We willen toe naar
een sectorbrede
aanpak, met een
centraal aansluitregister
dat netwerkklanten aan
leveranciers bindt, in
afstemming met de
collega-netbeerders.
De huidige economie doet
pijn in de portemonnee, maar
plaatst de klant weer in het
midden.
Kees Smaling,
Voorzitter MT
Informatisering AEGON
Nederland
EXECUTIVE INTERVIEW
AEGON houdt regie graag
strak in handen
Hij kent de uitersten, maar is daarin niet zo geïnteresseerd.
Voorzitter Kees Smaling van de IT-directie van AEGON
Nederland draait liever aan de wieltjes tot hij het optimum
heeft gevonden. “Er is teveel hype, te weinig wederzijdse
kennis en we gunnen onszelf te weinig tijd om ergens goed
in te worden.” Zijn bedrijfskundige achtergrond, helpt de ITer bruggen te slaan naar de collega-directieleden. Maar hij
durft ook wat terug te vragen. ”IT is te belangrijk om over de
schutting te gooien.”
Bij AEGON Nederland neemt IT tientallen procenten van de
bedrijfskosten voor zijn rekening. Daar mag dus aandacht voor zijn.
”Ik luister zelf graag naar de collega’s in de directie en vraag dat ook
terug. In deze tijd hoort iedere discipline enig idee van IT te hebben
en de mogelijkheden daarmee te kennen. Al is IT typisch onze taak:
de collega’s zijn nodig om die optimaal te doen.” Wanneer Smaling
zelf IT-taken uitbesteedt, blijft hij ook betrokken bij de inhoud.
Vanwege de lessen uit het verleden, trekt hij tegenwoordig de regie
zelfs weer meer naar AEGON toe.
Hypes
Smaling zoekt de precieze tekst met de bedrijfsstrategie er even bij:
‘AEGON wil een effectief bedrijf met trotse medewerkers zijn, dat
winstgevende groei realiseert bij trouwe, enthousiaste klanten
(‘fans’)’. Deze lange-termijndoelstelling laat hij leidend zijn in zijn
werk, daar is hij principieel in. En het helpt hem ook. Want strategie is
makkelijker te formuleren, dan te realiseren en te handhaven. Vanaf
het moment dat hij aan de muur van de kantine is gespijkerd, staat
de doelstelling onder druk van de waan van de dag, de weerbarstige
realiteit, de hypes en de polarisering. Met respectievelijke
voorbeelden gezegd: stuiterende beurskoersen; de afhankelijkheid
van beleggingsresultaten; na MSN, Second Life en Hyves nu weer
Twitter; en het altijd bediscussieerde belang van het intermediair.
Zomaar vier voorbeelden, waarbij het risico bestaat dat de klant, en
daarmee AEGON’s missie, uit het zicht verdwijnt. Het scheelt Kees
Smaling een boel ruis en verspilling van energie, tijd en geld, door
regelmatig te wijzen op de klant als de kern van de zaak en elkaar
daarmee bij de les te houden.
37
EXECUTIVE INTERVIEW
Vertrouwen
Gedurende zijn loopbaan is Smaling gegroeid in zijn rol. Met
zichtbaar plezier vertelt hij over de stappen die hij heeft gemaakt om
te komen waar hij nu bij AEGON is aangeland. Over de vrachtwagens
papier die een ISO 9001-certificaat van een eerste werkgever
opleverde; over de niet zo positieve betekenis van een SAP –
implementatie bij een grote verzekeraar; en over de spannende
projecten bij het IT-adviesbureau waar hij AEGON als klant leerde
kennen.
Door wederzijds begrip en goede communicatie, wil Smaling
bruggen slaan van IT naar marketing, de algemene directie en
financiën. Daarnaast zet hij hoog in op vertrouwen: ”We moeten
bewijzen dat we het vertrouwen waard zijn. Hoe meer vertrouwen,
hoe minder controle. Ik wil niet praten over de deugdelijkheid van
een versleutelingsmethodiek. Daar vertrouw ik mijn mensen op. Zo
moeten we als IT, ook door de overige disciplines worden vertrouwd”.
360°-klantbeeld
AEGON is groot. AEGON is complex. De eisen zijn hoog. De tucht van
de markt is voelbaar. Héél voelbaar. Financieel gezien, is het
operationeel resultaat van de verzekeraar momenteel weer
belangrijker dan de beleggingsresultaten. Enerzijds is dat pijnlijk in de
portemonnee. Anderzijds komt de klant daarmee weer centraal te
staan, zoals dat volgens de strategie ook hoort.
Omdat Smaling een man is van de lange golven, hoeft hij nooit terug
naar de kern: “Gisteren was het Second Life, vandaag is het Twitter.
Maar ik ga geen driedimensionale rekeningen uitsturen, alleen omdat
het kán. AEGON wil een ‘360°-klantbeeld’, zoals we dat intern
noemen. Een compleet klantbeeld dus, waarover onze mensen altijd
en overal kunnen beschikken. Dát faciliëren we en zeg dan maar hoe
je dat verpakt wilt hebben.”
38
In deze tijd hoort
iedere discipline enig
idee van IT te hebben
en de mogelijkheden
daarmee te kennen.
EXECUTIVE INTERVIEW
Intermediair
Nog zo een: de eeuwige discussie over de toekomst van het
intermediair, het kanaal, of hoe je de oude, vertrouwde
verzekeringstussenpersoon wilt noemen, in een tijd dat iedereen
elkaar nakwettert: ‘Alles wordt internet’. Smaling: ”Het intermediair is
en blijft heel belangrijk voor AEGON. De belangrijkste
verzekeringsproducten zijn adviesgevoelig. Het intermediair speelt
daarin een glansrol. Het heeft ook de noodzakelijke
vertrouwenspositie voor bijvoorbeeld pensioenen. Dan zijn onze
klanten vaak bedrijven en moet je niet te commercieel gelikt zijn,
maar ook relationeel werken.”
Maar de IT van AEGON moet ook de klikkende klanten op internet
bedienen. ”Op internet, gelden andere criteria”, zegt Smaling. ”Je
moet er scherpe aanbiedingen hebben, met verzekeringen die
standaardproducten zijn, zoals autoverzekeringen. Daar mag je de
concurrentie niet teveel ruimte gunnen. En moet je bouwen aan de
breinpositie van AEGON bij de 16-jarige die vanavond een
reisverzekering zoekt die morgen in moet gaan. Later wil die ónze
lijfrentepolis geadviseerd krijgen, omdat hij AEGON kent en goede
ervaringen met ons heeft.”
Medewerkersvijvers
Nu de roep om efficiëntie zo luid klinkt, is het dan niet eens tijd voor
het centraliseren van de drie IT-centra met medewerkers in Den
Haag, Leeuwarden en Nieuwegein? ”Decentraal ben je flexibeler,
centraal ben je efficiënter. Het is ons voortdurend streven om
decentraal efficiënt te werken. Vandaag het een, morgen het ander,
dát is inefficiënt. Bij AEGON kunnen we vissen uit drie vijvers met ITers op drie plaatsen in Nederland, die elkaar ruggensteunen,
aanvullen en scherp houden.”
39
EXECUTIVE INTERVIEW
India
In Nederland hebben detacheerders momenteel duizenden IT-ers op
de bank zitten. Maar morgen kan er evenzogoed weer krapte zijn. Als
altijd kijkend naar de langlopende trend, heeft Kees Smaling zijn
troeven ingezet op India: ”Op de vraag: ‘zelf doen of uitbesteden?’
hebben we duidelijk geantwoord ‘uitbesteden’ als het gaat om
technische functies. Daarmee hebben we het risico op
capaciteitsgebrek afgekaart. En we wilden niet zelf opleiden. India is
een onuitputtelijke bron van IT-ers en continuïteit in de werving van ITers is voor AEGON erg belangrijk. Specialismen wilden we in huis
houden, voor de regievoering over het uitbestede werk.”
Regie
Daarmee pakt AEGON de outsourcing tegenwoordig wel anders aan
dan vroeger. ”Technische analyse, bouw en gebruikstests offshoren we
in India. Dat kan in de toekomst ook door softwaregeneratoren
worden gedaan. Maar de regievoering hebben we tegenwoordig zelfs
weer helemaal terug in huis gehaald. De daartoe benodigde
specialismen, willen we ook zelf wel opleiden, als dat nodig is. Maar
tussen India en Nederland, zetten we geen derde partijen meer. De
lijnen moéten kort.”
Overlegresultaat
Smaling houdt van korte lijnen en goed contact, met echte,
intermenselijke communicatie: ”Het resultaat van overleggen is vaak
erg laag. Een brij aan documenten en telefonische of zelfs
videovergaderingen helpt daar niet bij. Als projecten vastlopen, gaat er
niks boven een ontmoeting in levenden lijve. Een half uurtje met de
juiste mensen en een white board, doet dan wonderen. Die
overlegvaardigheden moet je ook met India ontwikkelen. Het is
onontbeerlijk de culturele barrières te slechten.”
Crisis
”Crisis houdt je scherp”, zegt Smaling tenslotte. De bijbehorende
focus op kosten, is opgelegd pandoer. ”Voortdurend toetsen we of
investeringen bijdragen aan de strategie. In onze sourcingstrategie zijn
niet de kosten, maar capaciteit en kwaliteit primair.”
40
De IT van AEGON
moet ook klikkende
klanten bedienen, maar
op internet gelden wel
andere regels.
41
De SVB is het nutsbedrijf dat
de sociale verworvenheden van
Nederland aan de burger levert,
als water uit de kraan.
Marjolein ten Kroode,
Lid Raad van Bestuur, SVB
EXECUTIVE INTERVIEW
De SVB houdt principes
hoog met IT
Of we zijn al klant, of we worden het nog. Goede kans dat op
de knikpunten van ons leven, de Sociale VerzekeringsBank
(SVB) om de hoek komt kijken als uitvoerder van een volks- of
sociale verzekering. Na geboorte, pensioen, of dood, komt de
SVB in actie. Vaak gewaarschuwd vanuit de
Basisadministraties die de overheden aanhouden. De SVB
werkt dan vaak zo menselijk, klantgericht en foutloos, dat
we het niet eens merken.
De SVB wérkt gewoon, zoals het telefoniebedrijf voor de privatisering.
Efficiëntie door organisatie en automatisering moet de principes van
menselijkheid, klantgerichtheid en foutloos werken, ook voor de lange
termijn veiligstellen.
Taakstellingen
“We zijn inderdaad als een nutsbedrijf”, zegt SVB Raad van Bestuurslid
Marjolein ten Kroode. “Het nutsbedrijf dat de sociale verworvenheden
van Nederland aan de burger levert, als water uit de kraan. De politiek
beslist, de SVB voert uit. Daarbij voldoen we aan hoge standaarden.
Dat foutloze, dat moeten we behouden. Dat klantgerichte moeten
we koesteren en de juiste klantbejegening, die moeten we blijven
oefenen. Maar aan efficiëntie moeten we verder winnen: in 2011
komen er ferme taakstellingen aan vanuit de landelijke overheid aan.
Dat we moeten bezuinigingen, daar kun je gif op innemen. High
tech, high touch, dat is de kunst.”
Volksverzekeringen
Sinds 1901 is de Sociale Verzekeringsbank (SVB) uitvoerder van
Nederlandse volksverzekeringen, die tegenwoordig voortvloeien uit
de Ouderdomswet, de Nabestaandenwet, de Kinderbijslagswet en de
Wet Bijzondere Ziektekosten. Dit zijn publieksrechtelijke wetten
tussen de burger en zijn overheid, die gelden voor iedere
Nederlander. Als bij belastingen is er geen verband tussen de
betaalde premies, die in fondsen worden gestort en het recht op en
de hoogte van de uitkering. Dit in tegenstelling tot de
werknemersverzekeringen.
43
EXECUTIVE INTERVIEW
Naast de volksverzekeringen verzorgt de SVB de uitkering van
verschillende sociale verzekeringen, waarvoor geen premie wordt
geheven en die geheel uit belastingen worden bekostigd.
Asbest
De SVB heeft ook onvermoede kanten. Voor houders van
persoonsgebonden toeslagen verzorgt de SVB op verzoek de
salarisadministratie van het personeel dat zij inhuren - kosteloos. Ook
voert de SVB voor gemeenten de Wet Werk en Bijstand voor 65plussers uit. En als er een maatschappelijk probleem opdoemt, zoals
lijders aan asbestkanker die niks aan een schadevergoeding achteraf
hebben, dan vraagt de overheid de SVB om bij te springen met
voorschotten en het overnemen van procedures.
Ministerie
De SVB is een zelfstandig bestuursorgaan. De Raad van Bestuur van
de SVB wordt aangesteld door de minister van Sociale Zaken en
Werkgelegenheid. De ‘collegiale’ Raad van Bestuur bestaat uit een
voorzitter en twee leden. Het hele primaire proces valt onder
Marjolein ten Kroode, die in de portefeuille dienstverlening ook het
ICT-bedrijf heeft. Het ICT-bedrijf voert namelijk ook (delen van) de
digitale dienstverlening uit. In de processtructuur van de SVB staat
Ten Kroode’s bedrijfskolom van de uitvoering centraal. De overige
drie hoofdprocessen strategie, kaderstelling en management services
ondersteunen de uitvoering.
Zelfbediening
Jaarlijks keert de SVB aan bijna 5 miljoen burgers bijna 30 miljard euro
uit, met ruim 3000 medewerkers, vanuit negen vestigingen, een
aantal loketten en, steeds belangrijker, het zelfbedieningsloket dat de
website is. Onder de hoede van KPN zoemt in Apeldoorn het
mainframepark, dat de SVB nog voor de overname uitbesteedde aan
Getronics. Stokoude Cobol-kerntoepassingen zijn fijngeslepen tot
perfectie, stabiel als de draaiing van de aarde en feilloos als Willem Tell.
44
High tech maakt
high touch mogelijk:
persoonlijke
dienstverlening gebaseerd
op een hoge
automatiseringsgraad.
EXECUTIVE INTERVIEW
Tien voor Service
Vanuit het hoofdkantoor in Amstelveen ziet Ten Kroode het met
vertrouwen aan: “We werken hier met een schitterende erfenis, die
we graag laten excelleren. Het SVB-programma ‘Tien voor Service’
gaat over componenten die we in deze oorspronkelijke systemen
bouwen in de vorm van bijvoorbeeld een eenduidig
klantbeheersysteem. Daar stoppen we de stroomlijning in die we
nodig hebben om de dienstverlening te verbeteren.”
Excelleren
Met ‘Tien voor Service’ migreert SVB van ‘excellente
gevalsbehandeling’, waarbij rechtsmatige wetsvoering telt, naar
‘excellente dienstverlening’, dat is perfecte, klantgerichte
automatisering, met de Nederlandse burger als klant aan het loket, of
aan de telefoon met vragen of klachten, of op de website - voor
zelfbediening.
Prijs!
‘Tien voor Service’ is een meerjarig veranderprogramma dat nu drie
jaar loopt. Ten Kroode werd er al voor onderscheiden met de ICT
Personality 2008 Award van branchevereniging ICT Office. Ze mocht
deze prijs ontvangen uit handen van Harrold Goddijn, omdat zij een
‘beheerste veranderaar is, die ICT met succes inzet bij de
grootschalige vernieuwing van het uitkeringstraject binnen de SVB,
die daardoor het gros van zijn klanten bedient via de digitale
snelweg.’
Kaizen
Ten Kroode vindt het een béétje voorbarig, maar glimlacht dat ze
graag ‘zo groot mogelijke kleine stappen’ neemt: “Dat is de essentie
van Kaizen - de Japanse manier om verbeterprocessen door te
voeren”.
45
EXECUTIVE INTERVIEW
Veiligstellen
Haar ambitie is duidelijk niet alleen persoonlijk, maar ligt vooral bij de
SVB. Hoe beter het lukt de SVB optimaal te organiseren en te
automatiseren, des te beter is de SVB in staat haar functie en principes
(menselijk, klantgericht en foutloos) voor de lange termijn veilig te
stellen.
Überding
High touch, dankzij high tech, maar voorlopig heeft Ten Kroode ook
betaal- en poststraten onder zich die jaarlijks miljoenen betalingen en
brieven produceren – alweer even foutloos. Het beeld dringt zich op
van de elektronische-popgroep Kraftwerk, die in ‘Die Mensch Machine’
de ideale organisatie droomde als ‘Halb Wesen und halb Überding’:
extreem doorgevoerde automatisering om het wezen van de SVB als
menselijke, klantgerichte uitvoeringsinstantie veilig te stellen.
Herontwerp
“We herontwerpen de organisatie”, zegt Ten Kroode. “Daartoe zijn we
nu al onze vaardigheden aan het vergroten. Onder de streep staan we
voor kwaliteit en dat blijven we doen, maar daar voegen we
dienstverlening en efficiëntie aan toe.”
Uitbestedingsstrategie
De kerntoepassingen en zelfs de betaalstraten zijn van eigen makelij.
Eenvoudige conclusie is dat de rol voor outsourcen bij de SVB heel
nauw is bepaald. Ten Kroode: “Uitbesteden is voor mij geen doel op
zich. Niemand piekert er hier over om de kerntoepassingen naar India
te offshoren. Verder is er van alles mogelijk. Het klantsysteem schaffen
we aan met Capgemini als resultaatverantwoordelijke partner. Beheer
doen we intern. Exploitatie van het mainframe is al jaren uitbesteed.
Shared services voor ondersteunende processen kun je ook buiten de
deur doen. We kopen daarvoor pakketten in. Maar onze strategische
processen houden we binnenshuis - al laten we ons daarover wel
adviseren door ingehuurde, externe expertise.”
46
Strategische
systemen offshoren we
niet naar India. Maar we
laten ons er wel over
adviseren.
In existing deals buyers are
more frequently conducting
benchmarks from a price
performance perspective, and
are also opening up deals to
get better pricing from service
providers, to change other
deal terms and conditions
(e.g., volumes, performance
levels) and to change the scope
of services.
AUTHORS: Anton Joha,
Research Director, EquaTerra Europe &
Asia Pacific
Stan Lepeak, Managing Director,
Global Research, EquaTerra and EquaSiis
EQUATERRA DUTCH IT SERVICE PROVIDER
PULSE SURVEYS RESULTS 1Q09
Trends in the Dutch
Outsourcing Market
According to Leading Dutch
Service Providers
In this article EquaTerra will present the findings from its
inaugural version of the Dutch Information Technology (IT)
service provider Pulse survey. EquaTerra polls the market’s
leading IT and business process service providers and advisors on
a quarterly basis to get a ‘pulse’ on outsourcing and third party
services market trends. The key Dutch IT service providers (with
all respondents at executive/managing director level) that were
polled for this quarter’s sell-side survey include, but are not
limited to Accenture, Atos Origin, Capgemini, Fujitsu, Getronics,
HP/EDS, IBM, Logica, Schuberg Philis, T-Systems.
Market Demand and Market Trends Update
The Dutch service providers polled were positive on new deal pipeline
growth projections and future outsourcing demand growth (see Figure 1).
• Over 50 percent of the service providers polled characterised their
pipelines as growing in the quarter, while only five percent of the
service providers cited a decline in pipeline growth, over double the
Pulse survey average but down seven percent from last quarter.
• Sixty percent of the service providers polled expect an increase in
demand next quarter, while just six percent expected demand levels to
decline next quarter.
49
FIGURE 1: CURRENT PIPELINE & DEMAND NEXT QUARTER
60%
60
Pipeline this quarter
54%
Demand next quarter
50
41%
40
34%
30
20
10
5%
6%
0
Increase
Same
Decrease
The Economy’s Impact on Outsourcing Demand
As these survey results are being produced the global economy shows little
sign of significantly improving and many signs it could continue to decline.
Current economic conditions challenge organisations in many ways:
• It is difficult both from a cash flow and corporate desire standpoint for
many organisations to make any sort of large cash outlays, for example
to fund a process improvement effort tied to an outsourcing
engagement.
• Most organisations are deferring capital expenditures even if they can
afford them due to market and demand uncertainty and many firms
still have limited or unfavourable access to capital.
• All organisations are looking for ways to reduce costs and make costs
more flexible, defer future investments, and better map costs to their
shrinking top-lines.
• Organisations are demanding short-term and realistic ROI models on
any new initiatives.
• Buying and decision-making processes are complicated and delayed by
larger corporate and market events.
EquaTerra has polled the service providers as to how current economic
conditions are impacting outsourcing demand levels (see Figure 2).
50
• The response shows that 69 percent feels market conditions are
driving more outsourcing.
• Twenty-three percent overall indicated economic conditions are
causing buyers to slow or rethink outsourcing. The emphasis here is
on slowing, not stopping, and rethinking in context of new scope,
terms and goals, not whether to eventually go forward or not.
Buyers are more often deferring, not cancelling, outsourcing
initiatives. The deferrals are, in most cases a result of other events
occurring in the buyer organisations that have impacted the
sourcing process, rather than because buyers have changed their
minds about outsourcing.
FIGURE 2: ECONOMIC ENVIRONMENT’S IMPACT ON OUTSOURCING
The economic environment
is driving more outsourcing
23%
8%
The economic environment
has little/no impact on
outsourcing decision making
69%
The economic environment is
causing buyers to slow or
rethink outsourcing plans
Pricing Competitiveness
Increasing pricing competitiveness implies the buyer has the upper hand
and is getting a better priced outsourcing deal. As pricing is one
element of determining profitability, the alternative of less competitive
pricing is generally favourable to the service provider. Service providers
also impact pricing competitiveness by the extent of their own
aggressiveness in pursuing deals. Many service providers in the market
today are selective of the clients and deals they pursue. Improved
sales process oversight has helped leading providers do a better job
at opportunity assessment and management. The major factors
impacting service provider pricing levels today remains the growth of
global service provisioning, the impact of exchange rates on local
market pricing, and increasing overall market competitiveness.
51
Current market conditions are leading to more aggressive pricing. This is
counteracted overall – though not in individual accounts – by service
provider selectiveness in deal pursuit. It is also tempered by a general
awareness among more experienced buyers that the lowest price may
not lead to the best deal. There is equal concern in the market today
among buyers about entering into deals today that will fail because of
bad pricing. Figure 3 illustrates pricing trends according to service
providers polled in this quarter’s study.
• Fifty-nine percent of service providers polled indicated that pricing
pressure increased in the quarter.
• Thirty-eight percent of service providers indicated that the pricing
pressure remained unchanged while just three percent answered
that pricing pressure was becoming less aggressive.
FIGURE 3: PRICING
3%
More competitive/aggressive (e.g. more competitive and
favorable to the buyer) pricing than this time last quarter
About the same as last quarter
38%
59%
Less competitive/aggressive (e.g. more favourable
to the service provider) than last quarter
Buyers’ Behaviour Regarding New and Existing Deals in this
Economic Climate
In the light of the current economic conditions and service provider and
geopolitical risk (e.g., terrorism, major service provider financial problems)
we asked in what ways buyers are changing their approaches regarding:
• NEW outsourcing and global services sourcing efforts; and
• EXISTING outsourcing and global sourcing deals.
52
For new outsourcing deals, as we can see in Figure 4, the top five of
how buyers are responding is as follows:
1. Pursuing deals that are primarily focused on cost savings
(vs. process improvement, access external talent)
2. Pushing service providers to finance/defer/absorb any upfront
change or transition costs
3. Pursuing deals that have short (<12 month) ROI timeframes
4. Adding new business with existing service providers instead of
taking new business to market
5. Pursuing deals that are smaller in scope
FIGURE 4: BUYERS BEHAVIOUR REGARDING NEW OUTSOURCING EFFORTS
Pushing service providers to
finance/defer/absorb any upfront
change or transition costs
5%
24%
53%
18%
2%
Pursuing deals that have short
(<12 month) ROI timeframes
Pursuing deals that are primarily
focused on cost savings
(vs. process improvement,
access external talent)
8%
5%
21%
42%
14%
27%
41%
40%
3%
Pursuing deals that are
smaller in scope
16%
Focusing more on onshore/
nearshore and less on offshore
7%
33%
34%
28%
13%
33%
28%
2%
Deemphasising use of Indian
based service providers
5%
24%
34%
34%
Consolidating business with
large, tier one multinational
and Indian service providers
7%
22%
37%
28%
Adding new business with
existing service providers
instead taking new business
to market
1 – Very Uncommon
5%
7%
2%
2%
48%
0
2
20
3
37%
40
60
4
12%
80
5 – Very Common
100
53
For existing deals (Figure 5), the top five ways buyers are behaving
differently, are:
1. Benchmarking existing deals from a price/performance perspective
2. Opening up deals to get better pricing from service providers
3. Assessing existing deals from a governance and service provider
financial risk perspective
4. Opening up deals to change other deal terms/conditions
(e.g., volumes, performance levels)
5. Opening up deals to change the scope of services
FIGURE 5: BUYERS BEHAVIOUR REGARDING EXISTING OUTSOURCING EFFORTS
2%
10%
48%
16%
37%
4%
15%
36%
42%
26%
13%
35%
35%
19%
37%
5%
Pulling work back altogether
from offshore service providers
5%
Shifting more work onshore/
nearshore from current
offshore locations
15%
3%
24%
32%
31%
10%
3%
12%
10%
20%
24%
12%
0
1 – Very Uncommon
11%
53%
40
60
2
5%
80
3
Opening up deals to
change other deal terms/
conditions (e.g., volumes,
performance levels)
Opening up deals to change
the scope of services
Opening up deals to get better
pricing from service providers
17%
55%
30%
20
54
48%
Investing more in outsourcing
governance operations/
changing the governance
operating model
Benchmarking existing
deals from a price/
performance perspective
Assessing existing deals from a
governance and supplier
financial risk perspective
100
4
5 – Very Common
Conclusion
Business and IT service providers polled indicated that current quarter
market demand growth is strong. Service providers concur that
economic conditions will drive further outsourcing efforts. Providers are
being forced to deal with more aggressive pricing demands from buyers
and strong emphasis on cost savings and short term, realistic Return on
Investments (ROI’s).
In existing deals buyers are more frequently conducting benchmarks
from a price performance perspective, and are also opening up deals to
get better pricing from service providers, to change other deal terms
and conditions (e.g., volumes, performance levels) and to change the
scope of services. Buyers are also doing more assessments on existing
deals from a governance and service provider financial risk perspective.
55
The changing world
and its impact on IT
A better and more skillfully
organised IT function is crucial if it
The
ThreetoOptions:
is
to continue
be seen as an
enabler and not as a disabler.
AUTHOR: Gerard Wijers, Managing Director,
Governance & Sourcing Management
Advisory, Europe & Asia Pacific
56
DEMAND AND SUPPLY
Key for the Modern
IT Organisation
The Changing World and its Impact on IT
In today’s fast changing world, businesses need to be able to react
quickly to changing circumstances. These changes can happen for any
number of reasons: a changing economic climate, globalisation or new
business opportunities. IT organisations operating in such an environment
have to be in a better position strategically to allow them to ‘go with
the flow’. Knowledge of the way in which the business applications and
IT infrastructure have been architected and built to support the total
business operation is more important than the daily running of the IT
operation. A better and more skillfully organised IT function is crucial if it
is to continue to be seen as an enabler and not as a disabler.
The time when IT was regarded as one organisation has passed. Large
parts have been outsourced. This has led to the creation of so called
supply management organisations and to align with the business,
demand organisations were also created. Unfortunately these demand
organisations can be found at all levels throughout the business.
To get themselves into ‘better shape’, IT organisations should develop
in the following ways:
• Focus more on control rather than on operations (outsourcing)
• Pay as much attention to demand management as supply
management
• Develop better co-operation with the business
In this article we will focus primarily on the best practices EquaTerra
has to offer in order to shape IT companies into lean-and-mean
demand-supply IT organisations which are in control and have a close
affinity with the business.
We’ll begin with a brief historical perspective looking at how to
organise IT. Then we’ll explore how to think in terms of Demand and
Supply, including:
• The difference between operational, tactical and strategic
IT management
• The importance of clear decision-making
• The centralisation and decentralisation of demand-supply
responsibilities
• The EquaTerra demand-supply process reference model
57
DEMAND AND SUPPLY
How IT has Evolved
The 60s and 70s were notable for the breakthrough of IT. It was a
new specialisation which – in line with the idea of the structure of
organisations at the time – was brought under a separate IT
department. Within this department a considerable amount of
knowledge was available, in particular on the administrative business
processes, and the personnel developed themselves into IT specialists.
During the 80s the weaknesses of this type of organisational model
became apparent. It seemed that all at once business managers were
helpless when it came to IT issues. The phrase of the moment then
was local IT management, which, as the right hand of the business
manager, was responsible for formulating the demand for IT services
while at the same time, functioning as the internal client for the
central IT organisation. Partly because many business units objected to
the power which the central IT organisation held – with its central
mainframes – smaller local IT units were created. In many companies
the central IT organisation was forced into the role of internal IT service
provider and it was repeatedly asked if services could be outsourced.
The 90s were characterised by a wave of selling off (parts of) the
central IT departments. This meant that large amounts of specific
know-how of company processes, and the way in which they were
coordinated, were lost. At the same time the downside of the
decentralised IT was realised in the form of uncontrollable cost
increases. Standardising the infrastructure and the workplace and
centralising how it was run provided an effective central direction
for IT. Later on there were successful initiatives to avoid redundancies
within the application landscape i.e. by introducing one standard
software package for all different business lines.
In the last decade it has become obvious that economies-of-scale in IT
can lead to cost savings, and that the IT service providers play an
important role in realising this. An important part of the success of
outsourcing is determined by how good a relationship exists between
two powerful parties, (customer and service provider) both being
aware and understanding the needs of, and what is important to, the
58
In the last decade
it has become obvious
that economies-of-scale
in IT can lead to cost
savings, and that the
IT service providers play
an important role in
realising this.
DEMAND AND SUPPLY
other. Bearing in mind that many IT service providers are large
multinational companies, clients have to be well organised when
giving direction to these parties.
Supply management focuses on getting the right IT services delivered
at the right price. The focus is therefore on efficiency. But at the
same time companies have to be able to map out their needs and
put the right questions to the IT service providers. Demand managers
who make up part of the management teams in the business units
play an important role in this. Seen from the standpoint of cost
control, and most definitely from the viewpoint of achieving flexibility
and adaptability of the IT service delivery, centralised demand
management is also preferred.
The Demand/Supply Way of Thinking
The key words for today’s IT organisation are demand management
and supply management, see Figure 1. Demand management
focuses on the implementation and improvement of business
processes and establishing the relevant IT requirements needed to
support these processes. At the same time it’s important to be able
to work well and closely with the business management. The focus of
demand management is on effectiveness: The functionality of the
business applications and the quality of the management information
can strongly influence the company’s performance.
FIGURE 1: DIFFERENCE BETWEEN BUSINESS, DEMAND MANAGEMENT, SUPPLY MANAGEMENT AND IT
DELIVERY
Business
Demand
Demand
Management
Focus on effectivity: doing the right things
Why? What?
Business processes
Functionality
Requirements
Supply
Management
IT
Delivery
Focus on efficiency: doing things right
How? Who?
Applications
Infrastructure
IT-solutions
59
DEMAND AND SUPPLY
Supply management focuses on getting the IT services delivered
by the service provider(s). But even the best service providers can’t
perform well if the client can’t make clear to them what is expected
of them. Therefore it’s important that supply management is in a
position to fulfil their IT needs and requirements using the solutions
and services of the IT service provider. In addition the focus of the
supply management is on efficiency and standardisation: in a mature
IT service provider market, IT services are sourced based on the best
price/performance ratio but also fitting to the IT standards and
architecture within the boundaries set by the organisation. It also has
to be realised that IT services are not ready-made, and have to be
constantly guided, evolved and improved.
By making a distinction between business, demand management,
supply management and delivery, we create a clear chain of
responsibilities. We illustrate this with the Change Management
process. A change which involves the design of a business process
(i.e. because of a change in legislation) can lead to a need for a change
in a business application (demand management) which has to be
translated into clear specifications for the IT service provider (supply
management), for which software has to be changed and installed (IT
delivery). This is what we mean when we refer to chain processes.
60
DEMAND AND SUPPLY
Operational, Tactical and Strategic Management Chains
Often when putting a governance model in place, a distinction is
made between strategic, tactical and operational processes and
management. In the strategic processes the direction of the business
is determined on a mid and long-term basis and the policies are
outlined. The tactical processes cover the acquisition, maintenance
and allocation of capital assets (money, personnel, means of
production, IT) through which the company’s goals can be achieved.
The operational processes are about using the actual means of
production to sell products and services to parties in the market, and
for which those parties pay an adequate price. This common practice
is also well adapted for IT and results in the following levels of chain
management in IT, see Figure 2.
FIGURE 2: DIFFERENCE BETWEEN STRATEGIC, TACTICAL AND OPERATIONAL MANAGEMENT
Business
Demand
Management
Supply
Management
IT
Delivery
STRATEGIC
Process chains in the strategic domain focus on determining the targets and
the policy of the (IT) organisation (an example is the annual planning cycle)
TACTICAL
Process chains in the tactical domain focus on guiding and using the people
and processes, in staying aligned with the established policy (an example is the
project portfolio management process)
OPERATIONAL
Process chains in the operational domain focus on the execution of the daily
operational IT processes (an example is the incident management process)
61
DEMAND AND SUPPLY
Organising Decision-Making Within the IT Service
Provider
To ensure that the process chains function properly it’s important to
know who makes the decisions, who’s responsible for formulating the
decisions and who executes the resulting actions. The way IT
governance is implemented, varies by organisation, but some basic
principles are always present.
For example, we’ll assume the organisation has a number of business
units within which there are a number of different business processes.
These business processes can be unique for the business units, but
some business processes show similarities between the business units
(i.e. Finance, HR).
In this example, Figure 3, a number of roles can be seen which are
of relevance:
• The business executive who is responsible for the end results of his
business unit
• The business process owner who is responsible for the setup and
maintenance of the business processes
• The business operations manager who manages and oversees the
execution of all activities within an individual business process and
who ensures that targets are achieved
At every level, we can recognise the chain:
Business – Demand Management – Supply Management – IT Delivery
and every time, we come across the roles that make the decisions at
that level. These are the foundations of the IT governance structure.
62
DEMAND AND SUPPLY
FIGURE 3: AN EXAMPLE OF ROLES AT DIFFERENT LEVELS OF RESPONSIBILITY
Business
Demand
Management
Supply
Management
IT Delivery
BUSINESS (UNIT)
STRATEGY
Business
Executive
BUSINESS
PROCESS
Business
Process
Owner
Demand
Manager
Application
Services
Manager
IT Services
Manager
Business
Operations
Manager
Functional
Manager
Application
Manager
IT Service
Delivery
Manager
BUSINESS
OPERATION
Chief Information Officer
IT Executive
Let’s begin by explaining the decision-making roles at the lowest
level. At an operational level the business operations manager is
responsible for the daily processes. He’s responsible for ensuring that
the products and services needed for business success are available
and delivered. One of the assets required for this is IT. The business
operations manager instructs the functional manager and speaks to
him if there are problems. The functional manager will speak to one
or more of the application managers to ensure that the applications
which are used for the IT are functioning properly. These applications
run on specific infrastructure operated by an IT service provider. The
IT service delivery manager has the task of making sure that the IT
services operate correctly and will take care of any new changes in
application as they go into production.
63
DEMAND AND SUPPLY
At a tactical level you can see the difference between decisions which
relate to either business processes, IT functionality, IT specifications
or IT delivery. The demand manager is in direct contact with the
business process owner. Whenever more business processes make
use of the same application (i.e. SAP for both the production control
and HR process) someone at this level within the organisation has to
safeguard the integrity of the application: the applications service
manager. For this application service there are a number of different
software and IT infrastructure components, for which an IT service
manager is responsible, in terms of renewing and maintaining this
IT. In this example the application service manager is the supply
manager to the IT service manager. There are also practical
situations in which the demand manager directs both the application
and IT service managers or where another service manager is
allocated, see Figure 4. The exact function will differ in each variant
and can only be completely defined when it’s clear in what way the
complete chain will be organised.
DEMAND AND SUPPLY
FIGURE 4: ALTERNATIVE WAYS IN WHICH DEMAND-SUPPLY AT A TACTICAL MANAGEMENT LEVEL CAN BE
CONSTRUCTED
Model 1
Tactical
Demand-Supply
Management
Model 2
Tactical
Demand-Supply
Management
Model 3
Tactical
Demand-Supply
Management
Business
Demand
Management
Supply
Management
IT Delivery
Business
Process
Owner
Demand
Manager
Application
Services
Manager
IT Services
Manager
Business
Process
Owner
Business
Process
Owner
Demand Manager
Application
Services
Manager
IT Services
Manager
Demand
Manager
Supply
Manager
Application
Services
Manager
IT Services
Manager
At a strategic level we have the roles of the CIO and the IT director. The
CIO has overall responsibility for the IT services delivered to the business
units. The IT director has responsibility for delivering IT services which
conform to the agreed specifications. When the IT services have been
outsourced to an external party, various (external) IT directors will be
included in the chain. If the internal IT organisation provides parts of the
IT, an internal IT director will be responsible for this.
65
DEMAND AND SUPPLY
At the strategic level, decisions include subjects such as strategy,
architecture, portfolio management and the annual planning cycle.
The outcomes of these processes often serve as input for final
approval by the business executive. The CIO takes the lead in
developing the strategy, architecture, portfolio and annual planning
cycle for the IT domain, but the outcome of these processes is
presented to the business executive for decision-making. The IT
director will become involved when the decision-making is related to
the realisation of ‘applications’ and ‘IT infrastructure components’.
How the Demand/Supply Function is Organised
The implementation of the demand/supply function is greatly
influenced by how a company is structured. There are three basic
forms recognisable in organisations:
1. An organisation with business units producing different products
and services which they put in the marketplace. The business
units have a large amount of freedom in structuring the company
processes, a freedom which – within the boundaries set – can
also extend to supporting processes (Financial, Personnel). We
call this the product driven federation model.
2. An organisation with business units producing similar products
and services, but each serving a distinct market. The business
processes are completely standardised and the company
sections have (almost) no room for manoeuvre. We call this the
branch model.
3. A variant of the branch model, where standardisation of
processes is limited to large regional differences between
branches. These differences are often found in businesses which
have been part of a merger and have had to deal with different
types of products or working culture. We call this the regionally
driven federation model.
66
DEMAND AND SUPPLY
In the product driven federation model demand management
responsibilities are carried out both at the centralised level as well as
at the business unit level. Every business unit has a demand
management unit which contributes to improving the business
process and putting forward the requirements to the IT service
provider. The IT requirements of the business units are, in some
instances, brought together at the central level, so that – wherever
possible and if meaningful – the same IT requirements are met with a
general solution. Consequently there is only one possibility for getting
the required IT services delivered, namely via a central supply
management unit. This has primarily to do with the fact that it’s of
key importance that contracts and service agreements are defined in
a clear and standardised way across the whole organisation. In the
day-to-day development and maintenance of IT services and also the
day-to-day management of demand, the local managers will deal
directly with the contracted suppliers.
FIGURE 5: DEMAND-SUPPLY IN A (PRODUCT DRIVEN) FEDERATION STRUCTURE
Business Unit
Local Demand
Management
Business Unit
Central
Demand
Management
Central
Supply
Management
IT Delivery
Local Demand
Management
67
DEMAND AND SUPPLY
In the branch model business processes are designed at a central
level and deployed into the branches. For each of the recognised
business processes there is one person at central level who decides
on the structure: the business process owner. A demand manager is
responsible for the setup of the business processes and the necessary
IT requirements. It’s also important for the IT requirements of the
different business processes to be brought together, so that common
solutions can be both identified and deployed. An important
difference of the product driven federation model, is that demand
managers can also be found at a central level.
Business
Central Demand
Management
Branch
Branch
Business Process
Business Process
Demand Management
The regionally driven federation model is one which falls in between
the branch model and the product driven model. The desire will
always be to have the business processes as uniform as possible in the
various business units, but because of major differences which exist
locally it’s necessary to put local demand management in place. This
can even be to the extent that IT services are locally sourced on the
one hand because the differences in the IT services can’t be bridged,
or on the other hand because it’s simply cheaper to buy the services
locally, because the centrally contracted supplier is unable to provide
support at that location.
68
Central Supply Management
FIGURE 6: DEMAND-SUPPLY IN A BRANCH MODEL
IT Delivery
DEMAND AND SUPPLY
The EquaTerra Demand-Supply Process Model
This is the demand-supply process reference model, which EquaTerra
employs to optimise the IT organisations of its clients, to prepare them
for the future to be able to operate closely with the business and make
optimum use of the possibilities in the market.
FIGURE 7: THE EQUATERRA DEMAND-SUPPLY PROCESS REFERENCE MODEL
Business
Demand
Management
Supply
Management
IT
Delivery
Strategic
Strategy and policies
Portfolio and architecture
Annual planning cycle
Compliance and quality
Finance
Tactical
Project portfolio management
Service agreements and contracts
Service level management
Projects
Operational
Changes and releases
Operational support
Operational maintenance and implementation
69
The market has
demonstrated that when two
or more business functions are
bundled – for example, HR and
IT, or F&A and HR – an additional
10 to15 percent in savings
can be achieved over a single
business-function BPO agreement.
AUTHORS: Mark Hodges,
Chairman of the Board and Executive
Director, Corporate Development
Alan Hopwood,
Principal Consultant
BUNDLING
Bundling: Outsourcing
Multiple Business Functions
We are frequently asked by our clients about the efficacy of
“bundling” one business function – HR, F&A, IT, or
Procurement – with another business function into a single
and larger Business Process Outsourcing (BPO) agreement.
The questions range from “What are the benefits to
bundling?” and “How much additional cost savings are
possible by bundling?” to “Are there BPO providers who can
deliver on two or more business functions?” and “Is it more
risky than outsourcing a single business function?” If you are
wrestling with these same questions, there are a set of
factors and additional questions to address that will help
determine whether bundling the business functions for BPO
is a sensible strategy for your organisation.
71
BUNDLING
The first steps is to familiarise yourself with the different bundling strategies
available and consider the potential benefits to your company. The figure
below depicts the different ways to bundle business processes. In options
A and B only, processes in one specific tower are outsourced to specific
specialised service providers, while in options C and D, processes that
belong to more than one different tower are combined and outsourced to
holistic service providers who are able to handle both ITO and BPO.
FIGURE 1: SOURCING STRATEGY / DEGREE OF BUNDLING
Maximise Specialisation
OPTION A
OPTION B
OPTION C
OPTION D
Point Solutions
Best of Breed by Tower
(n* = 4 to 10)
Multi-Tower Bundle
and Specialised Providers
(n* = 1 to 4 )
Multi-Tower
Bundle
(n* = 1 )
By tower, outsource
a significant portion
of the business
processes within a
tower with a provider.
Towers would be
defined as typical
G&A functions such
as, HR, F&A, IT, and
Supply Chain
Outsource a
significant portion
of each of the Towers
(HR, F&A, IT) with one
provider. Activities
not normally done
by a Tier One
provider are sourced
to a specialised
provider
Outsource to one
provider with the
service provider
responsible for
managing
subcontractors
(n* = 10 to 25)
Out-task at the
process level to a
number of niche
service providers
*n = number of providers
72
Maximise Scale
BUNDLING
First consider the potential benefits to your company. The market has
demonstrated that when two or more business functions are bundled
– for example, HR and IT, or F&A and HR – an additional 10 to 15
percent in savings can be achieved over a single business-function
BPO agreement. Therefore, if maximising cost savings is critical to
your organisation’s objectives, as opposed or in addition to other BPO
objectives such as adding capability or increasing flexibility, a bundled
BPO relationship can make sense.
Another factor in favour of bundling comes into play if your company
is looking at the transformation of multiple business functions at the
same time and is either in the midst of massive restructuring or
intending to start in the coming 12 to 24 months. Where the functions
are closely integrated, for example a multi-functional shared service
centre, the benefit of bundling is that it avoids the work and challenge
of segregating the business functions. The value of process synergies
across functions can be retained through to the BPO agreement.
Conversely, setting up multiple outsourcing agreements, especially
simultaneously, requires significant attention to interdependencies.
The client is always caught in the middle between service providers if
there are hand-off issues.
Companies often set up separate governance organisations for each
of their outsourcing agreements. For a bundled agreement, your
company can have reduced governance complexity and be more
cost efficient, a not inconsequential saving. Also, by having fewer
points of accountability and devoting more senior and skilled
managers to the larger agreement and being able to apply more
focus to a single provider, should achieve better services.
73
BUNDLING
Pros of Bundling
Pros of Best of Breed
Provider interest (particularly to smaller functions
like F&A)
Allows a truer best of breed approach – functions
don’t have to compromise to get to common
provider
Negotiating and relationship leverage
Allows more time-critical work to move faster (no
shared critical path in sourcing phase)
Strong ownership of final solution during
development (if ERP implementation is bundled
with BPO / ITO services)
Risk less concentrated (multiple partners)
Contracting effort / time (single stream)
Doesn’t require shared escalation points or PMO /
project management
Streamlined governance & contract administration
Promotes stronger alignment of function and
service provider operations
End-to-end SLA ownership (eliminate handoffs and
finger pointing)
Accelerated timeline to end-game
Consistency in approach, tools, decision processes
and solution
The next consideration is how bundling affects your choice in the
market. You do need to assess the provider market and ask yourself a
number of questions: will your company be comfortable with the fact
that there will be fewer BPO providers who can deliver on a bundled
BPO agreement?
74
BUNDLING
Some procurement organisations, and even legal departments,
have major problems when RfPs aren’t going out to at least six to ten
suppliers, even though for a major deal, this is usually
counterproductive. But, working with only two or three providers
makes them nervous and feeling like they will not have had a true
market test. A related concern is whether there is broad capability in
the providers. Can the candidate providers deliver a quality service for
every business function; or will the delivery of some area be
prototyped by you first? If this is the case, then you have obviously
introduced significant risks.
Once it has become clear that a bundled BPO agreement does have
significant advantages to your situation, you have to assess whether
your company is organised in such a way, in terms of company
technology, capacity and capability, that it is able to manage a BPO
initiative across multiple business functions. The amount of resources,
energy, and choreography necessary to accomplish this task is
enormous. Think of managing two or three M&A deals at once… it is
difficult to conceive if an organisation is not used to cutting across
functional towers and driving harmonised organisational change.
Your company may be used to variance in geographical delivery and
where the point of delivery occurs, so these aspects also need to be
taken into account.
There are other relevant internal factors, such your company’s ability
to collaborate. Do your functional leaders work well as a team?
Have your HR leader and CFO collaborated previously on large-scale
initiatives? Are they able to reach joint decisions? Does the CIO respect
the head of HR or the SVP of Procurement and vice versa? If the
business function leaders tend to be factional, if internal P&Ls compete,
it can be very difficult to harmonize a BPO initiative across fiefdoms.
And will your CEO and executive management team drive cohesion?
Will they act as a team when various functional leaders try to break
from the pack? Often the selected BPO provider on a bundled deal is
not the unanimous choice among the functional leaders, increasing
the possibility of ‘opt out’ actions. Will your CEO and executive
management ensure this does not happen and enforce compliance?
75
BUNDLING
FACTORS TO CONSIDER IN BEST OF BREED VERSUS MULTIPLE TOWER PROVIDER STRATEGIES
76
Governance
It is more costly, and inherently more complex, to manage multiple
outsourcing providers than a single one. The governance function
must be professionalised. If the buyer does not create a world-class
governance organisation, a best-in-class multiple provider approach
will fail. An effective governance operating model, skilled talent, and
automated processes are necessary features to pass this critical gate.
Many buyers do not possess, nor do they want to develop, this
essential capability.
Technology
If a buyer organisation has a relatively recent ERP software suite
implemented, a best-in-class approach is possible. Typically, one provider
will run the underlying technology platform, and the same or more
providers will run the business processes supported by that technology.
Cost Savings
Economics favour fewer providers and broader scope. However, practical
realities of how many providers maintain internal silos across
functional areas can limit the economies of scale and scope potential
achieved.
Accountability
A best-in-class approach forces the buyer itself to drive service
delivery integration and is the party accountable for the integration.
Finger-pointing is more common in best-in-class solutions.
Provider P&Ls
A best-in-class approach allows the buyer to deal with a single P&L of
each selected provider. Often, when a single-provider approach is
chosen, the client must cope with different organisations, P&Ls,
compensation drivers, and performance metrics – all within the same
provider company! In theory, this is supposed to be invisible when the
single-provider route is selected. But in reality, most large BPO
providers are a confederation of different business units; hence,
service delivery is not seamless across their P&Ls.
BUNDLING
Process Interdependencies
Leverage
Transition and
Implementation Resources
Concentration Risk
A good process interdependency example is a Human Resource
Outsourcing (HRO) agreement in which payroll has been taken out of
scope. The ramifications are significant because payroll processes are
integral to managing the daily flow of employee information. For
instance, the compensation process depends heavily on the payroll
process for delivery of bonus plan payouts, performance share plans,
annual compensation adjustment cycle, deferred compensation, etc.
A multi-provider strategy gives the buyer more leverage and can
increase the probability of healthy, competitive tension on their
account over time. This works particularly well when the buyer is a
well-recognised, global brand.
These resources are in short supply in the BPO provider community
and often act as a ‘choke point’ or delaying agent for rollouts,
especially when they are multi-country or global. With multiple
providers, you can allocate regions to those best equipped for that
geography or allocate processes to the best BPO specialist.
Multiple BPO providers help avoid the risk of putting all your eggs in
one basket. When a BPO provider exits the business, goes bankrupt,
becomes difficult to deal with, doesn’t perform as contracted, or gets
acquired, the buyer can more easily switch out that provider for a
suitable replacement.
Good preparation is key and it is wise to think through potential
pitfalls in advance. What happens if perhaps one service area
performs well, but others not – how can this be rectified, split out or
addressed when one multi-sourcing agreement exists? Effective
risk/reward and performance mechanisms have to be put in place.
77
BUNDLING
Given the above risks, many clients feel more comfortable initially
outsourcing one business function, getting it into production, and
letting it run for a year or more before they tackle the next business
function. Right or wrong, many clients feel this is less risky and will
increase their probability of BPO success over time. However, if your
company is comfortable with a ‘big bang’ approach, then bundled
BPO can be made to work.
Determining whether outsourcing a single business function or
bundling is the best choice is not a simple decision; it depends on a
multitude of factors. Make sure you understand your company’s
organisational strategy, capacity, capability, culture, governance and
decision-making processes before you select one BPO route versus
another – it will save you time, money, energy and resources that can
better be used elsewhere.
78
BUNDLING
When Does it Make Sense to Bundle*?
When Does it Make Sense for a Single
Business Function to ‘Go It Alone’*?
Total cost savings are paramount (+10-15 percent
additional cost savings vs. standalone sourcing
strategy)
One business function is out ahead of the others,
and there is no certainty the other functions will
‘catch up’
Organisation is able to organise itself, and provide
sufficient resources, to collectively investigate
multiple business functions at once
Functional leader is willing to drive their function
to BPO much faster than their peers
Organisation prefers a ‘big bang’ approach to change
– “let’s get it over with, as quickly as possible”
Speed to transformation (not cost savings)
is critical
Multiple module (i.e. more than one business
function) ERP implementation is planned and/or
underway
The corporation wants to test BPO with one
business function first before rolling out BPO as a
broader G&A strategy
Multi-function shared services organisation is
already in place
Wide number of potential providers is desired for
the selection process
Multi-shore service delivery model is desired
Outsourcing Centre of Excellence (COE) is not
in place
‘Lift and shift’ or ‘re-badge employees Day 1’
strategy is preferred to a staged transformation
If many business functions are on separate ERP
platforms or the technology is legacy or fragmented
* Note: Not all of the above conditions need to
be met for bundling to make sense.
True shared services is not widely deployed
Multiple client references are desired
* Note: Not all of the above conditions need to be
met for a ‘Go it Alone’ sourcing strategy to
make sense.
79
BIOGRAPHIES
About the Contributors
Nico Boot
Nico Boot, is Executive Director of EquaTerra’s operations in Europe
and Asia Pacific. He joined the company in 2002. With more than 25
years of industry expertise, Nico has held various executive roles
including director of application maintenance services and CEO of an
ICT-infrastructure services company. He was also a member of the
executive board of a pan-European e-business solutions start up.
Paul Cornelisse
As Managing Director of EquaTerra’s Information Technology Advisory
business in the Netherlands, Paul is responsible for selling, delivering,
coaching and managing assignments and members of the ITO teams
in the region. Starting his outsourcing career in the early nineties at
PTT Post Print & Mail (today TNT), Paul built up a lot of operational and
strategic sourcing experience in various roles as managing director and
COO. He has over 22 years of experience in the ICT and facility
business and has proved he is a very result oriented and focused
manager and dealmaker. Paul holds a business degree In Economics
from the HES in Amsterdam and followed an extensive Advanced
Management Program at Nijenrode University in Breukelen between
2000-2001.
Mark Hodges
Mark Hodges is an acknowledged pioneer of business process
outsourcing (BPO), coining the term in 1989 in the first-ever research
report on BPO. Mark has a talent for creating new markets and
building the pre-eminent company in those markets, including
EquaTerra, Exult, TPI and G2 Research. As a co-founder of EquaTerra
and chairman of the board, Mark works actively with a variety of
EquaTerra clients across the globe and is responsible for corporate
development. Mark is a regular speaker at global BPO industry events
and a monthly columnist for HRO Today magazine. He sits on two
industry advisory boards – the HROA (HR Outsourcing Association) and
SharedXpertise. Mark graduated from the University of California at
Berkeley with a bachelor’s degree in political economies of industrial
societies (economics and political science).
81
BIOGRAPHIES
Alan Hopwood
Alan is a former CIO for a major oil company and he has over 30 years
experience first as a manager and then as an advisor, across a range
of business, HR and IT services. Since joining EquaTerra in 2004, Alan
has led and advised on global broad scope HR, Finance and IT BPO
and sourcing assessments for a number of multi-national clients
covering all aspects from strategy through to contract and
subsequent implementation and governance. He holds an MBA from
Henley Management College and a B. Eng Electronics. He is a MBCS
CITP with the British Computer Society, a Chartered Electrical
Engineer and an MIET with the Institute of Engineering and
Technology.
Anton Joha
Anton Joha is in charge of the EquaTerra and EquaSiis research
programme in Europe. Anton joined EquaTerra* in 2004, and worked
for four years as an advisor on projects related to sourcing strategies,
outsourcing selection processes, and a variety of evaluation analyses
relating to governance, customer satisfaction issues and service
provider performance. Anton is affiliated with the Delft University of
Technology and researches and publishes regularly on topics relating
to shared service centres and other (new) organisational forms. He
holds a M.Sc. in Management Information Systems from the Delft
University of Technology, The Netherlands.
*Anton joined Morgan Chambers; EquaTerra acquired the European
sourcing advisory firm, Morgan Chambers in September 2007.
82
BIOGRAPHIES
Stan Lepeak
Stan Lepeak leads the EquaTerra and EquaSiis global research
practice, which focuses on issues and current and future trends in the
global information technology and business process outsourcing
markets. He has over 20 years experience in the business and IT
services markets and previously served with the META Group as VP
and Research Lead for the business and IT services marketplaces,
compliance research practice area co-lead and as a leader of the
Electronic Business Strategies service. Stan is a noted commentator
and frequent speaker on business and IT professional services,
business process outsourcing and transformation, organisational
change, risk management, compliance, and underlying supporting
technologies.
Gerard Wijers
Gerard Wijers is the joint Managing Director of EquaTerra’s
Governance and Sourcing Management practice for the Benelux
region. Along with Rik Bijmholt, Gerard started the practice in 2007
after more than 15 years of building customer-supplier relationships
in IT. As an experienced advisor with a strong background in IT
strategy and governance, Gerard has the reputation of a committed
professional and entrepreneurial advisor. He has supported many
Dutch customers and internationals, and recent clients include AD
Nieuwsmedia, AVR, Belastingdienst, CBS, ENECO, Kluwer, Prorail,
Rijkswaterstaat, TNT and Vopak.
83
BeLux
Pegasuslaan 51831
Diegem (Brussels), Belgium
Tel: +32 (0)2 709 29 32
infobelux@equaterra.com
The Netherlands
Postbus 75090
1070 AB Amsterdam, Netherlands
Tel: +31 (0)88 002 2900
infonl@equaterra.com
China
Level 31, Jin Mao Tower,
88 Shi Ji Avenue, Pudong,
Shanghai 200120, China
Tel: +86 (0)21 28909093
infochina@equaterra.com
Sweden (Nordic HQ)
Strandvägen 7a
114 56 Stockholm, Sweden
Tel: +46 (0)8 662 30 67
infonordics@equaterra.com
Finland (Baltics and Russia)
Mannerheimintie 12b, 5th Floor
FIN-00100 Helsinki, Finland
Tel: +358 (0)9 2516 6368
infofinland@equaterra.com
Germany
Herriotstrasse 1
60528 Frankfurt, Germany
Tel: +49 (0)69 67733423
infogermany@equaterra.com
India
Level 4, Rectangle No.1,
Commercial Complex D4, Saket,
New Delhi 110017, India
Tel: +91 (0)11 4051 4227
infoindia@equaterra.com
United Kingdom
150 Minories, London
EC3N 1LS United Kingdom
Tel: +44 (0)845 838 7500
infouk@equaterra.com
Americas
Three Riverway, Suite 1290
Houston, TX 77056
United States of America
Tel: +1 713 470 9812
infoamericas@equaterra.com

EQ STRATEGIC VISION BROCHURE DUTCH

Transcription

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