New model of IT outsourcing
The customer, a big energy utility with most of its IT activities outsourced to a single provider for several years, wished to redefine its outsourcing model with the following objectives:
- Identifying activities that could be redesigned using best practices
- Critically assessing the existing outsourcing model, specially in those areas where more problems had arisen in the last years
- Introducing competence in service provision (for some selected services), to avoid the negative effects of a single provider provision
- Defining the evolution of the IT model (functions to be outsourced or internalized), focusing on the effective control of services, and thus adjusting the organization
- Obtaining higher service levels, increasing the control over the services and reducing their provision costs
During the first part of the project the following activities were carried out:
- Analysis of the existing services and outsourcing contract situation (AS-IS analysis of the outsourcing model and DAFO analysis)
- Definition and analysis of alternative evolution scenarios and the corresponding IT governance model
- Sizing for the proposed service model
In a later stage of the project the proposed model was implemented by:
- Detailed definition of the new operating and outsourcing model (including a new process model)
- Creating a RFP to select new outsourcing providers; proposal evaluation and provider selection
- Definition of service outsourcing contracts with the chosen providers
- Creation of a new relation model with the internal customers of the IT function
- Identification and definition of new activities for providers coordination
Currently there is still work going on in this project:
- Supporting the effective collaboration among the different providers of outsourced IT services
- Controlling the provision of IT services by the providers, and generating service management reports
- Preparing reports on IT services provision for internal customers
- Working on the continuous improvement of the IT outsourcing model