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The Executive Decision to Outsource: Living with IT

The initial relief and excited optimism over signing the outsourcing deal is waning fast. Now you must manage a relationship with a service provider whose incentives are not always alligned with your needs. At the same time, you must still be proactively and reactively responsive to changing business technology. This track will present successful methods for establishing and managing the flexible relationship required to meet your evolving IT needs.

Critical Success Factors: Benefits:
* Understand organizational and contractual strategies
* Learn how to implement and manage measurement programs to provide the right incentives for vendor performance
* Hear about successful re-negotiation tactics, and management strategies for accommodating change in the relationship
* Discover tips, techniques, and lessons learned for mending a broken relationship 		* Optimize the use of internal vendor management resources, and save valuable management level time, by setting up the right contract and organization
* Continually improve vendor-provided services by implementing a meaningful and relevant measurement program
* Eliminate or minimize the need for costly renegotiation by implementnig a flexible contract

  1. Reengineering Outsourcing Transactions: Renegotiation, Restructuring and Termination
    Dan Mummery, Partner, Milbank, Tweed, Hadley and McCloy

  2. Service Levels: Key to a Successful Outsourcing Project
    Gerry Levesque, National Director of Maintenance Outsourcing, Coopers & Lybrand

  3. Understanding and Managing Complex Outsourcing
    Christopher J. Sullivan, Director, Network Management Practice, Onsett International Corporation

  4. Measurement: The Key to Successful Software Process Management
    David Herron, Partner, The David Consulting Group

  5. Balancing the Scorecard: Second-Generation Service Level Agreements
    Dean Davison, Senior Research Analyst, META Group

  6. Addressing the People Issue
    Frieda Gillespie, Director, Customer Sales and Systems Support, Litton Computer Services

  7. Outsourcing Contracts: An Overview on the Terms and Conditions
    David Black, Executive Vice President & General Counsel, ACS

    1. Reengineering Outsourcing Transactions: Renegotiation, Restructuring and Termination

    Dan Mummery, Partner
    Milbank, Tweed, Hadley and McCloy
    Tuesday, 2:00-2:50 p.m.
    This presentation describes from the customer's perspective, how to prepare for and plan a renegotiating or termination of an existing outsourcing contract. As older outsourcing deals mature, many IT executives will have to prepare for and, even anticipate, an outsourcing restructuring.

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    2. Service Levels: Key to a Successful Outsourcing Project

    Gerry Levesque, National Director of Maintenance Outsourcing
    Coopers & Lybrand
    Tuesday, 3:00-3:50 p.m.
    This presentation examines the ways service levels can be designed to achieve the most benefit from an outsourcing project. We will discuss the various types of service levels by which executives can not only monitor the technical and business aspects of the outsourcing relationship, but can also measure user satisfaction. This session also examines actual case studies of service levels and their successes and failures.

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    3. Understanding and Managing Complex Outsourcing

    Christopher J. Sullivan, Director, Network Management Practice
    Onsett International Corporation
    Tuesday, 4:00-4:50 p.m.
    There has been a noticeable shift to outsourcing distributed computing environments, networks, applications development/maintenance and help desk operations. The potential benefits cited often mask the escalating complexity and risks as well as the lack of existing management processes necessary to produce the desired results. This presentation discusses a structured approach to developing and managing multiple IT function outsourcing.

    Key Issues:

    • Economies that can be achieved by outsourcing groups of IT functions
    • Implications of outsourcing one or more IT functions or other IT processes
    • Approaches for managing multi-vendor outsourcing
    • Importance of service level agreements between service providers
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    4. Measurement: The Key to Successful Software Process Management

    David Herron, Partner
    The David Consulting Group
    Wednesday, 10:00-10:50 a.m.
    An outsourcing partnership is only as good as the measures that contractually link the two parties together. These measures are critical to the success of the ongoing relationship and therfore, must meet the needs of both the outsourcer as well as the customer. The selected measures need to reflect the quality of the deliverable as well as the productivity of the software process.

    Key Issues:

    • Identify measures that monitor the software deliverable/process
    • Learn to establish service levels and improve targets
    • Learn to use measures to manage the partnership
    • Understand the three steps to establishing outsourcing measurements
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    5. Balancing the Scorecard: Second-Generation Service Level Agreements

    Dean Davison, Senior Research Analyst
    META Group
    Wednesday, 11:00-11:50 a.m.
    The morning after contract signing, management shifts heavily toward vendor management. This session discusses the SLA as an outsourcing vendor management tool, including SLA structure and balanced scorecard metrics. Today's SLAs are becoming more simple in structure, more closely tied to business objectives, and use balanced scorecard metrics.

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    6. Addressing the People Issue

    Frieda Gillespie, Director, Customer Sales and Systems Support
    Litton Computer Services
    Wednesday, 2:00-2:50 p.m.
    Employees involved in an outsourcing situation are faced with three outcomes: staying with the current company, being laid-off, or being hired by the outsourcing vendor. This presentation deals with the nuts and bolts of handling the people issues, timing issues and what to say to your employees. It also addresses the following important concerns to assist you in selecting the right vendor.

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    7. Outsourcing Contracts: An Overview on the Terms and Conditions

    David Black, Executive Vice President & General Counsel
    ACS
    Wednesday, 3:00-3:50 p.m.
    The contract is the foundation for the partnership between you and your vendor. This presentation shows you how to acehive a "win-win" partnership based on hundreds of successful outsourcing relationships as well as how to deal with an uncertain future in a long-term contract while maintaining flexibility and adaptability for your changing business needs.

    Key Issues:

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