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Jan Erik Aase Director – Strategic Sourcing American Express Technologies

Jan Erik Aase Director – Strategic Sourcing American Express Technologies. The Business Benefits of Offshore Out-Tasking. Agenda. Strategic Challenges Constituents Approach Change Management Summary. Strategic Challenges. The Challenge: Control costs Increase flexibility

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Jan Erik Aase Director – Strategic Sourcing American Express Technologies

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  1. Jan Erik Aase Director – Strategic Sourcing American Express Technologies The Business Benefits of Offshore Out-Tasking

  2. Agenda • Strategic Challenges • Constituents • Approach • Change Management • Summary

  3. Strategic Challenges The Challenge: • Control costs • Increase flexibility • Improve time to market • Close skill gaps The Solution: • Have strong support from CIO and a pro-active senior manager • Work with the core of your enterprise – your PEOPLE • Cultural change & communication management are critical

  4. Balanced approach to our constituents Strategy serves all 3 of our constituents: • Shareholders • Cost reduction • Risk reduction • Customers: • Improve time to market • Improve efficiency • Employees: • Protect livelihood by flexing outsourcing capacity • Re-skilling and transitioning to core roles

  5. Approach to Offshore Approach to date: • Began in 1999 with 9 vendors • We had only 7% out-task and 93% mix of employees and contractors • Relationship was very transactional • Current Plan • Consolidate – Invest, Maintain or Disinvest • Move to strategic partnership • We’ve achieved $150M in cost avoids and $100M in cost savings • We have reached a level of 59% in house and 41% out-task resources

  6. POD to POA Phase 1 Resourcing Strategy 1999-2001 “Focus on rate” Phase 2 Vendor Optimisation 2002 “Focus on consolidation” Phase 3 Value Development 2003-05 “Focus on getting smarter” • Introduced offshore out-tasking and RS vendor partners • Reduced unit costs of IT resourcing year on year • Defined PoA resourcing mix • Rationalized vendor portfolio with improved economics • Value creation through improved performance & governance • New resourcing channels

  7. Change Management • Implementing a Global Strategy takes time before becoming BAU (business as usual) • This must be a strategic initiative

  8. Change Management • Tangible steps must be taken • Process change • Vendor selection • Cultural Awareness • Constant monitoring • Intangible issues must be anticipated • Leaders, employees and vendor partners will be impacted • It takes time for people to really “GET IT” • Ambiguity breeds resistance

  9. Our Successful Strategy Goal senior leadership team against the outsourcing strategy Develop a governance model and custom architected relationship management structure Create common tools and templates Align with Human Resource Development to create training to enhance out-tasking efforts Tools to change perceptions – use of videos, road shows, knowledge portals, India orientations, etc…

  10. Wrap Up What can a company do ? • Realize it doesn’t come naturally • Have visible senior level support • Create a training curriculum to help leaders be prepared What can Infosys do ? • Cross Cultural Collaboration training • Leverage their centers of excellence • Provide strategic thought leadership

  11. Thank You !! Q & A

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