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1、,IBM Global Services - Strategic Outsourcing,IBM Strategic Outsourcing, 2003 IBM Corporation,IBM Strategic Outsourcing Emily Wright Business Consulting Services,1,The Market Environment Strategic Outsourcing IBMs Capabilities On Demand,Agenda,2,Slow economic growth and pressures to improve earnings
2、are combining to make cost cutting the primary agenda item for a large majority (78%) of companies Growth is emerging as an important issue as economic recovery has been postponed (and may be slow to return). IT continues to be an important lever in achieving the cost saving objective for most compa
3、nies in two very different ways IT is being tasked to enable business process efficiency IT spending is also a source of savings as budgets for all functions are being trimmed. In general, IT budget pressure is in line with the overall business, however 30% of respondents indicate that IT spending h
4、as been cut more than other functions while 10% state that IT has been protected from cuts,Source: 2003 SO Market Insights study of 300 senior executives, Mercer Management Consulting,Companies are taking actions to improve their bottom line rather than waiting for “the recovery” to solve problems,I
5、n a weak global economy, companies face uncertainty about their economic and strategic future,3,Todays Economy is Forcing Companies to Address Complex Needs to Enhance Shareholder Value,4,Strategic outsourcing positively impacts shareholder value. Our research suggests the difference is in the order
6、 of 5.4% above the individual sector average and 4.9% above the overall FTSE 100. - Source: Morgan Chambers, Outsourcing in the FTSE 100: The Definitive Study Evidence shows that IT outsourcing has a discernible positive impact on share prices. A study of 27 companies undertaking large IT outsourcin
7、g initiatives indicates an average gain in shareholder value of 5.7% over and above the general market trend. - Source: Stern Stewart, IT Outsourcing and Shareholder Value,Why outsource? To increase shareholder value.,5,Senior Executive Priorities,6,Substantial market growth over last five years; gr
8、owth anticipated at 9% through 2007. IBM is a market share leader.,SO is a Mainstream IT Solution,7,Strategic Outsourcing represents a major source of revenue and profit for IBM,8,The strategic (transformational) and constraint (necessary evil) segments are becoming less prevalent.,Customers are ten
9、ding to view IT as a support or enabler,9,Outsourcing has become a common business strategy,10,Strategic Outsourcing : What is the Value for the Customer ?,Cost reduction Ability to focus on core competencies Increase availability of specific skills and resources Improve stability, effectiveness and
10、 service levels of IT Enable rapid business change / expansion Obtain access to advanced technologies & research, and to industry, business and technology experts Predictable expense management Gain contractually committed service levels Flexibility to transition to the next generation of infrastruc
11、ture and applications Build a long term strategic relationship . for competitive advantage,Increase shareholder value,11,Understand your core competencies in light of your business strategy Determine what portions of your portfolio to outsource IBM can partner with your company in a variety of ways
12、- from out-tasking, to selective outsourcing of one of more IT functions, to full-scale outsourcing Select an outsourcing provider who will build a strong relationship with your company IBM takes a relationship approach that ensures clear expectations, allows for flexibility, collaborative planning
13、and mutual accountability,A Roadmap to Successful Outsourcing,12,A successful outsourcing relationship focuses on: Setting clear expectations for the relationship at the outset Establishing appropriate governance protocols to guide joint action that can deliver on the promise of the relationship Rec
14、ognizing the need to adjust the relationship over time Shared risk and return Meeting service level expectations -not just SLAs Contract flexibility - the ability to change the scale and content of what is being delivered as the business environment changes,Keys to a Successful Outsourcing Relationship,13,
