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ISM-ADR School for Supply Management
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Strategic Supply Management
Developing a Rationale for the Outsourced Selection
Introduction
Understanding Outsourcing
Offshoring the Second Generation Outsourcing
Understanding Offshoring
The Changing Nature of Work
Definition
Comparison & Contrast:
Outsourcing
Offshoring
Benefits to Offshoring
Issues to Offshoring
Examples of Business Activities being Offshored
Creating the Offshore Business Model
How to Develop the Business Model
Key Sections of the Model
Sections of the Models
Entry Phase
Development Phase
Integration Phase
Structure of the Migration Models
Location Profiling
Types of Offshore Business Models
First Tier Models
Secondary Models
Third Model
The Changing Offshoring Marketplace
Business Processed Offshoring Outsouring
Finance/Accounting
Customer Service
Human Resources
Transactional Analysis
Informational Technology
Supply Chain Management
Production Operations
Dell Computer's Low Cost Venture
American Express Opportunities
Best Practice Applications
Is the Company Prepared to Offshoring?
Knowing the Company's Compass
Understanding the Strategic Profile
Operational Deployment and Applications
Assessing the Firms Strengths and Weaknesses
Creating the Business Case Strategy
Ensuring Value in the Offshoring Project
Cross-Functional Involvement
Deployment of the Corporate Mission and Goals
Creating a SWOT Profile
Quantifying the GAPs
Employing a Balanced Scorecard
Utilizing a Compartmentalized Value Approach
Baselining with Performance Metrics
Make-vs-Buy / Make-vs-Do
Key Rational Concepts to Remember
Understanding the Control and Risk Factors
Case Analysis
Customer Service Firms Migration
Overview of the Industry
Why Would an Organization Offshore their Customer Service/Contact Area?
Decentralizing the Activity Does not Mean Losing Control of the Process
The Future Structure of the Customer Service Organization
Creating the Financial Justification for Award
Issue and Concerns
Case Analysis
Offshoring the Finance and Accounting Areas
Overview and Assessment
Why Firm's are Offshoring Their Financial Areas
Types of Accounting Processes to Offshore
Economics of the Application
Creating a Case for Offshoring the Accounting Function
Issues and Concern
Case Analysis
Offshoring of Human Resources
Overview and Assessment
Why Would an Organization Offshore Their HR Process?
Overview of the Areas for Outsourcing/Offshoring
The Offshoring Process
Determining the ROI on the Venture
Issues and Concerns
Case Analysis
Transactional Processing-A Natural for Offshoring
Overview and Assessment
Why TP is Such a Natural Process to Offshore
Areas for Transactional Processing
Comparison and Contrast
How the Process Works Best
Creating Value in the Process
Issues and Concerns
Case Analysis
The Roadmap Strategy for Success
How to Begin the Vision
The Ten-Step Model
Identify the Corporations Goals and Objectives
Compare Situations Success Criteria
Determining the Compliment to Your Offshoring Strategy
Creating the Offshoring Value Model
Identify the Best Viable Sources of Supply
Negotiate the Offshoring Contact
Design the Performance Metrics
Managing the Transfer Transition
Personalizing the Relationship Matrix
Measure and Audit the Performance
Communications Successfully
Selecting the Offshore Provider
Overview
Varity of Offshore Providers
Selecting the Correct Provider to Meet the Goals
Employing a Cross-Functional Team Approach
Information to Review
Creating the RFP for Offshoring
Due Diligence
Site Visits-Not Optional!
Qualifying and Quantifying the Decision
Samples
Which Country and Why?
Overview
Creating a Location Decision Matrix
Countries of Usual Consideration
New Countries for Review
Conclusion
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