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IBMGlobalServices-StrategicOutsourcingIBMStrategicOutsourcing?2003IBMCorporation
IBMStrategicOutsourcing
EmilyWrightBusinessConsultingServices1TheMarketEnvironmentStrategicOutsourcingIBM'sCapabilitiesOnDemandAgenda2Sloweconomicgrowthandpressurestoimproveearningsarecombiningtomakecostcuttingtheprimaryagendaitemforalargemajority(78%)ofcompaniesGrowthisemergingasanimportantissueaseconomicrecoveryhasbeenpostponed(andmaybeslowtoreturn).ITcontinuestobeanimportantleverinachievingthecostsavingobjectiveformostcompaniesintwoverydifferentwaysITisbeingtaskedtoenablebusinessprocessefficiencyITspendingisalsoasourceofsavingsasbudgetsforallfunctionsarebeingtrimmed.Ingeneral,ITbudgetpressureisinlinewiththeoverallbusiness,however30%ofrespondentsindicatethatITspendinghasbeencutmorethanotherfunctionswhile10%statethatIThasbeenprotectedfromcutsSource:2003SOMarketInsightsstudyof300seniorexecutives,MercerManagementConsultingCompaniesaretakingactionstoimprovetheirbottomlineratherthanwaitingfor“therecovery”tosolveproblemsInaweakglobaleconomy,companiesfaceuncertaintyabouttheireconomicandstrategicfuture3Today’sEconomyisForcingCompaniestoAddressComplexNeedstoEnhanceShareholderValueShareholderValue
ManagementNeedsReal-timedecisionsupportanalyticsandtoolsOperatingmodelflexibility
FinancialNeedsReduceandcontrol
operatingcostsImprovecashflowImprovereturnoncapital
StrategicNeedsImprovedcorebusinessfocusTransformedbusinessdesignAdditionaldollarsinvestedinhigher-valueprojects4"Strategicoutsourcingpositivelyimpactsshareholdervalue.Ourresearchsuggeststhedifferenceisintheorderof5.4%abovetheindividualsectoraverageand4.9%abovetheoverallFTSE100."-Source:MorganChambers,"OutsourcingintheFTSE100:TheDefinitiveStudy"
"EvidenceshowsthatIToutsourcinghasadiscerniblepositiveimpactonshareprices.Astudyof27companiesundertakinglargeIToutsourcinginitiativesindicatesanaveragegaininshareholdervalueof5.7%overandabovethegeneralmarkettrend."-Source:SternStewart,"ITOutsourcingandShareholderValue"Whyoutsource?Toincreaseshareholdervalue...5CostRevenue CustomerEfficiencyGrowth SatisfactionSource:2003SOMarketInsightsstudy,MercerManagementConsulting--300interviewswithseniorexecutivesSeniorExecutivePriorities6Substantialmarketgrowthoverlastfiveyears;growthanticipatedat9%through2007.IBMisamarketshareleader.Source:GMV2H03TheMarketplaceTheMarketplaceMarketOpportunityMarketOpportunityCustomersToptwobusinesspriorities-costefficiencyandrevenuegrowthServices-savvycustomers;increasing3rdpartyinvolvementSophisticatedmarketplace(customers,suppliers)CIOsplayingastrongroleinoutsourcingdecisionmakingIncreasinginterestinOnDemandGrowinginterest/expectationofacollaborativerelationshipDealsPricepressure–offshoreacceptanceCompetitionisfierceMorecomplexdealstructuresSOisaMainstreamITSolution7SOaspercentageofIBMrevenue19%SOaspercentageofIBMPTI28%OtherIBMSOSOaspercentageofIBMemployees21%StrategicOutsourcingrepresentsamajorsourceofrevenueandprofitforIBM8Thestrategic(transformational)andconstraint(necessaryevil)segmentsarebecominglessprevalent.CustomersaretendingtoviewITasasupportorenabler9PercentoftheFortuneXthatOutsourcedfrom1997-200260%ofFortune100firmshavetheiroutsourcingbusinessstrategiesinplaceSource:IDC–ContractsDatabase1997-200280%64%60%36%23%Fortune10Fortune25Fortune100Fortune500Fortune1000Outsourcinghasbecomeacommonbusinessstrategy10StrategicOutsourcing:WhatistheValuefortheCustomer?CostreductionAbilitytofocusoncorecompetenciesIncreaseavailabilityofspecificskillsandresourcesImprovestability,effectivenessandservicelevelsofITEnablerapidbusinesschange/expansionObtainaccesstoadvancedtechnologies&research,andtoindustry,businessandtechnologyexpertsPredictableexpensemanagementGaincontractuallycommittedservicelevelsFlexibilitytotransitiontothenextgenerationofinfrastructureandapplicationsBuildalongtermstrategicrelationship...forcompetitiveadvantageIncreaseshareholdervalue11UnderstandyourcorecompetenciesinlightofyourbusinessstrategyDeterminewhatportionsofyourportfoliotooutsourceIBMcanpartnerwithyourcompanyinavarietyofways--fromout-tasking,toselectiveoutsourcingofoneofmoreITfunctions,tofull-scaleoutsourcingSelectanoutsourcingproviderwhowillbuildastrongrelationshipwithyourcompanyIBMtakesarelationshipapproachthatensuresclearexpectations,allowsforflexibility,collaborativeplanningandmutualaccountabilityARoadmaptoSuccessfulOutsourcing12Asuccessfuloutsourcingrelationshipfocuseson:SettingclearexpectationsfortherelationshipattheoutsetEstablishingappropriategovernanceprotocolstoguidejointactionthatcandeliveronthepromiseoftherelationshipRecognizingtheneedtoadjusttherelationshipovertimeSharedriskandreturnMeetingservicelevelexpectations--notjustSLAsContractflexibility--theabilitytochangethescaleandcontentofwhatisbeingdeliveredasthebusinessenvironmentchangesKeystoaSuccessfulOutsourcingRelationship139、靜夜四無(wú)鄰鄰,荒居舊業(yè)業(yè)貧。。1月-231月-23Wednesday,January4,202310、雨雨中中黃黃葉葉樹樹,,燈燈下下白白頭頭人人。。。。20:37:2620:37:2620:371/4/20238:37:26PM11、以我獨(dú)沈沈久,愧君君相見(jiàn)頻。。。1月-2320:37:2620:37Jan-2304-Jan-2312、故人江江海別,,幾度隔隔山川。。。20:37:2620:37:2620:37Wednesday,January4,202313、乍見(jiàn)見(jiàn)翻疑疑夢(mèng),,相悲悲各問(wèn)問(wèn)年。。。1月-231月-2320:37:2620:37:26January4,202314、他鄉(xiāng)生生白發(fā),,舊國(guó)見(jiàn)見(jiàn)青山。。。04一一月20238:37:26下午午20:37:261月-2315、比不了得得就不比,,得不到的的就不要。。。。一月238:37下下午1月-2320:37January4,202316、行行動(dòng)動(dòng)出出成成果果,,工工作作出出財(cái)財(cái)富富。。。。2023/1/420:37:2620:37:2604January202317、做前前,能能夠環(huán)環(huán)視四四周;;做時(shí)時(shí),你你只能能或者者最好好沿著著以腳腳為起起點(diǎn)的的射線線向前前。。。8:37:26下下午8:37下下午午20:37:261月-239、沒(méi)有失失敗,只只有暫時(shí)時(shí)停止成成功!。。1月-231月-23Wednesday,January4,202310、很多事事情努力力了未必必有結(jié)果果,但是是不努力力卻什么么改變也也沒(méi)有。。。20:37:2620:37:2620:371/4/20238:37:26PM11、成功就是是日復(fù)一日日那一點(diǎn)點(diǎn)點(diǎn)小小努力力的積累。。。1月-2320:37:2620:37Jan-2304-Jan-2312、世間成事,,不求其絕對(duì)對(duì)圓滿,留一一份不足,可可得無(wú)限完美美。。20:37:2620:37:2620:37Wednesday,January4,202313、不知知香積積寺,,數(shù)里里入云云峰。。。1月-231月-2320:37:2620:37:26January4,202314、意意志志堅(jiān)堅(jiān)強(qiáng)強(qiáng)的的人人能能把把世世界界放放在在手手中中像像泥泥塊塊一一樣樣任任意意揉揉捏捏。。04一一月月20238:37:26下下午午20:37:261月月-2315、楚塞三三湘接,,荊門九九派通。。。。一月238:37下午午1月-2320:37January4,202316、少年十五二二十時(shí),步行行奪得胡馬騎騎。。2023/1/420:37:2620:37:2604January202317、空山新雨后后,天氣晚來(lái)來(lái)秋。。8:37:26下午8:37下下午20:37:261月-239、楊柳散和和風(fēng),青山山澹吾慮。。。1月-231月-23Wednesday,January4,202310、閱閱讀讀一一切切好好書書如如同同和和過(guò)過(guò)去去最最杰杰出出的的人人談?wù)勗捲挕!?0:37:2620:37:2620:371/4/20238:37:26PM11、越是是沒(méi)有有本領(lǐng)領(lǐng)的就就越加加自命命不凡凡。1月-2320:37:2620:37Jan-2304-Jan-2312、越是無(wú)能能的人,越越喜歡挑剔剔別人的
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