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The Executive Decision to Outsource: Making IT

The use of outsourcing as part of the IT service delivery "tool kit" has, over the past several years, become much more focused and mature. Additionally, the forms of IT outsourcing now run the gamut, from commodity-oriented transactions to long-term value-added partnerships. This track presents critical decision support and outsourcing implementation tactics which will allow executives to optimize outsourcing's usefulness in running the business of IT service delivery.

Critical Success Factors: Benefits:
* Understand the mechanics of IT services and business needs alignment, and its importance in IT services outsourcing
* Hear about key contractual terms and successful outsourcing deal structures, and how these impact the probability of a successful engagement
* Learn analytical methods for understanding the economics and incentives of your outsourcing agreement 		* Improve your negotiating position by learning and understanding tactics used by vendors to win
* Reduce the time and cost to procure outsourced services by learning strategies for partner selection and creating win/win relationships
* Enhance customer satisfaction levels by implementing a business-oriented IT service delivery organization

  1. Outsourcing — Are You Prepared to Do IT
    Ron Gallagher, President, Oust Consulting Inc.

  2. IT Value Dynamics — What Business Really Wants
    Jerry Mirelli, Practice Manager for Strategic IT Projects & Measuresments, CGS

  3. Realigning IT as a Business within a Business: The Sourcing Decision
    Chuck French, Manager of Consulting, META Group

  4. Understanding the Economics of an Outsourcing Proposal
    Dennis McGuire, President, Technology Partners, Inc.

  5. Reassessing IT Outsourcing: Issues of Process, Substance and Results
    Robert Zahler, Partner, Shaw, Pittman, Potts & Trowbridge

  6. Will That Be One Vendor or Two
    Dennis McGuire, President, Technology Partners, Inc.

  7. Network Operations Outsourcing: Key Decision Making Criteria
    Alexandra Whitehead, Practice Leader of IT Outsourcing Group, G2 Research Inc.

    1. Outsourcing — Are You Prepared to Do IT

    Ron Gallagher, President
    Oust Consulting Inc.
    Tuesday, 2:00-2:50 p.m.
    Many organizations that begin outsourcing initiatives never complete them, wasting both the company's and vendor's time and money. What questions should the organization that is contemplating outsourcing ask and what actions should it take to guarantee success of the initiative? There are a series of questions that any organization should think through before it begins an outsourcing initiative. Frameworks and approaches to evaluating the considerations and determining the answers to the requisite question will be provided. Failure to adequately anticipate the problems that can be encountered, and the resource requirements necessary, can either cause termination of the process or lead to sub-optimal results.

    Key Issues:

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    2. IT Value Dynamics — What Business Really Wants

    Jerry Mirelli, Practice Manager for Strategic IT Projects & Measurements
    CGS
    Tuesday, 3:00-3:50 p.m.
    This session explores the IT value based expectations of the business and IT executives. By understanding the different types of IT value drivers within an organization, you can better understand what you will achieve by outsourcing and how you can better design a measurement program. We will discuss; why the same IT behavior could yield dramatically different reactions from the internal client community, how to develop a model for understanding and managing the expectations of the business and describe how IT could communicate more effectively.

    Key Issues:

    [Top]

    3. Realigning IT as a Business within a Business: The Sourcing Decision

    Chuck French, Manager of Consulting
    META Group
    Tuesday, 4:00-4:50 p.m.
    In order to successfully "compete" in the delivery of information technology services, internal IT organizations must understand their "business" from both a supply and demand perspective. Delivered services must be managed and packaged as "products" responsive to the business-oriented demand of supported end-users. Supply side decisions must optimally obtain the IT product "factors of production" considering all available sources of input. In essence, IT organizations must reorganize into internal "vendors of services," delivering IT products as a "business within a business."

    Key Issues:

    • Understanding the internal "market" for IT services, translating business needs into IT requirements
    • Aligning and organizing IT services to fulfill business end-users' demand
    • "Productizing" functions and tasks into meaningful end-items users need and want
    • Structuring an analysis for making business relevant sourcing decisions
    [Top]

    4. Understanding the Economics of an Outsourcing Proposal

    Dennis McGuire, President
    Technology Partners, Inc.
    Wednesday, 10:00-10:50 a.m.
    TPI typically segments the client's RFP into four biddable units: Data Center, LAN/Desktop, Applications Maintenance and Telecommunications. The purpose of this presentation will be to discuss specific approaches used to analyze and compare the economics of three of those biddable units: Data Center, LAN/Desktop and Applications Maintenance.

    Key Issues:

    • Model vendor proposals
    • Cost vs. service tradeoffs
    • Pricing new services
    • In-house based case financial models
    [Top]

    5. Reassessing IT Outsourcing: Issues of Process, Substance and Results

    Robert Zahler, Partner
    Shaw, Pittman, Potts & Trowbridge
    Wednesday, 11:00-11:50 a.m.
    The changes that have occurred in IT outsourcing during the last ten years reflect a move to best practices in both the process for structuring and negotiating outsourcing contracts and the methods used to provide outsourcing services. This presentation critically evaluates and identifies a specific set of recommendations for new and renegotiated arrangements in the future.

    Key Issues:

    [Top]

    6. Will That Be One Vendor or Two

    Dennis McGuire, President
    Technology Partners, Inc.
    Wednesday, 2:00-2:50 p.m.
    If outsourcing with one vendor is good, will outsourcing with two or three be better or worse? This session will discuss a number of clients who each chose a different approach to managing the multi-vendor relationship including:
    DuPont, and Halliburton.

    Key Issues:

    [Top]

    7. Network Operations Outsourcing: Key Decision Making Criteria

    Alexandra Whitehead, Practice Leader of IT Outsourcing Group
    G2 Research Inc.
    Wednesday, 3:00-3:50 p.m.
    The market for network operations outsourcing will move away from traditional legacy infrastructure contracts to more LAN/WAN arrangements. Since these open, distributed network environments represent the next generation of IT infrastructure, end users will require a much broader spectrum of network types and configurations. This presentation will address the latest trends in end user requirements.

    Key Issues:

    [Top]

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