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Outsourcing for Dummies (For Dummies (Business & Personal Finance)) (PAP/CDR): Ashley, Ed: BOOKS KINOKUNIYA
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Outsourcing for Dummies (For Dummies (Business & Personal Finance)) (PAP/CDR)
Outsourcing for Dummies (For Dummies (Business & Personal Finance)) (PAP/CDR)
Publisher : For Dummies
Published Date : 2008/05
Binding : Paperback
ISBN : 9780470226872

BookWeb Price : MYR 83.80
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Book Description
Source: ENG
Academic Descriptors: A48403628
Place of Publication: United States
Academic Level: Extracurricular
Phoenix Public Library Holdings (Internal Code for CLS)
Table of Contents
Introduction                                       1  (1)
      About This Book                              1  (1)
      Conventions Used in This Book                2  (1)
      What You're Not to Read                      2  (1)
      Foolish Assumptions                          2  (1)
      How This Book Is Organized                   3  (2)
        Part I: The Ins and Outs of Outsourcing    3  (1)
        in Today's Marketplace
        Part II: Getting Your Outsourcing Ducks    3  (1)
        in a Row
        Part III: Putting Outsourcing into         4  (1)
        Part IV: Making Your Outsourcing           4  (1)
        Arrangements Work
        Part V: The Part of Tens                   4  (1)
        Part VI: Appendixes                        4  (1)
      Icons Used in This Book                      5  (1)
      Where to Go from Here                        5  (2)
  Part I: The Ins and Outs of Outsourcing in       7  (68)
  Today's Marketplace
    A Quick Overview of Outsourcing                9  (16)
      Eyeing What Companies Outsource              10 (2)
        Cost savings                               10 (2)
        Improved processes                         12 (1)
      To Outsource or Not: It's a Big Decision     12 (2)
      Walking through the Steps                    14 (7)
        Defining your strategy                     14 (1)
        Figuring out your scope                    15 (1)
        Selecting the right supplier               16 (1)
        Understanding pricing                      17 (1)
        Drafting a proposal                        17 (1)
        Negotiating with the suppliers             18 (2)
        Managing the supplier                      20 (1)
        Ending the job                             20 (1)
      Answering Some Questions You May Have        21 (4)
      about Outsourcing
    Understanding What Outsourcing Is and Isn't    25 (14)
      What Is This Outsourcing Stuff, Anyway?      26 (4)
        Defining outsourcing                       27 (1)
        Identifying the faces of outsourcing       28 (2)
      Why a Company Would and Wouldn't             30 (9)
      Outsource: The Pros and Cons
        The pros to outsourcing                    31 (5)
        The downsides to outsourcing               36 (3)
    Cha-Ching: The Costs of Outsourcing            39 (18)
      Understanding Direct Costs                   41 (8)
        Feasibility study                          41 (1)
        Transaction costs                          42 (3)
        Retained costs                             45 (1)
        Direct service costs                       46 (1)
        Direct management costs                    46 (1)
        Transition costs                           47 (1)
        Outside help costs                         47 (2)
      Getting a Firm Grasp on Indirect Costs       49 (5)
        Indirect transaction costs                 49 (2)
        Indirect service costs                     51 (2)
        Indirect management costs                  53 (1)
      The People Costs of an Outsourcing           54 (1)
      What about Savings?                          54 (3)
    Determining Whether Your Organization Is       57 (18)
    Ready to Outsource
      Before You Outsource: Why Looking into       58 (2)
      the Mirror Is Critical
        Knowing where to look within               58 (1)
        Acquiring executive support                59 (1)
      Knowing Your Organization's Strengths and    60 (4)
        Identifying your core competencies         61 (2)
        Eyeing your core incompetencies            63 (1)
      Figuring Out Your Risks: Outsourcing Is      64 (9)
      about Risk Allocation
        Assessing your risks                       64 (6)
        Operational risks: Will your services      70 (1)
        and processes succeed?
        Financial risks: How much is this gonna    70 (2)
        Managerial risks: Who's running this       72 (1)
      Making Sure That Your Company Has the        73 (2)
      Appetite for Outsourcing
  Part II: Getting Your Outsourcing Ducks in a     75 (70)
    Preparing Your Organization (and Team) for     77 (12)
      Creating a Business Case                     77 (3)
        Determine what each service costs today    78 (1)
        Determine the return                       79 (1)
      Planning for the Disruption to Business      80 (3)
        Preparing yourself and your team           80 (2)
        Eyeing the costs to have your team         82 (1)
        Preparing for a loss in productivity       82 (1)
        Gathering your data in advance             83 (1)
      Understanding all the Legal Mumbo Jumbo      83 (2)
        Keeping track of contract considerations   84 (1)
        Knowing about employment laws              84 (1)
      Remembering That Change Affects Everyone     85 (4)
        Plan ahead for people's reactions          85 (2)
        How to minimize impact to people           87 (2)
    What to Consider When Outsourcing in the       89 (14)
    International Arena
      Outsourcing Internationally: The Basics      89 (8)
      You Need to Know
        Contemplating business issues              90 (6)
        Grasping potential legal issues            96 (1)
      How Culture Can Impact Outsourcing           97 (4)
        People culture                             98 (1)
        Company culture                            99 (2)
      Communicating with International             101(1)
      Employees about Potential Outsourcing
      Eyeing the Currency to Use                   101(2)
        Bill for services                          102(1)
        Bill for taxes                             102(1)
    Planning a Sourcing Strategy                   103(22)
      Establishing Your Sourcing Strategy          103(1)
      Determining Your Business Objectives         104(4)
        Improved service                           104(1)
        Lower costs                                105(1)
        Ramp up current processes                  106(2)
      Considering New Capabilities                 108(3)
        Does the supplier bring new processes?     108(2)
        Do you offer an alternative process?       110(1)
      Identifying Opportunities to Outsource       111(3)
        Critical to the core                       111(1)
        Identify impact on business objectives     111(2)
        Prioritize the solutions                   113(1)
        Don't let your emotions rule               113(1)
      Understanding How to Determine Costs         114(6)
        Today's cost                               115(1)
        Tomorrow's cost                            116(4)
      Determining the Benefits                     120(3)
        Tangible benefits                          121(1)
        Intangible benefits                        122(1)
      Prioritizing the Identified Areas            123(2)
        Determine your priorities                  123(1)
        Price versus solution versus risk          124(1)
        versus fit
        Don't forget phases                        124(1)
    Defining Your Scope: What You Want to          125(20)
      Documenting Your Existing Process Flow       126(3)
        Begin with the entire environment          127(1)
        Determine where responsibility lies        128(1)
      Your As-Is View: Identifying the             129(3)
      Responsibilities in Your Organization
      Your To-Be View: Determining What You        132(3)
      Want to Achieve
      Identifying Highly Interactive Processes     135(10)
        Figure out where interaction may be high   136(3)
        Document highly interactive processes      139(2)
        Streamline processes before you            141(4)
  Part III: Putting Outsourcing into Action        145(104)
    Choosing Service Providers: The Selection      147(24)
      Defining the Selection Process               147(1)
      Getting an Expert to Help You                148(4)
        Getting sourcing advice                    149(2)
        Getting legal help                         151(1)
        Staying away from a mixed bag              151(1)
      Right-Size the Process for Your              152(5)
      Organization and Theirs
        Using sole-source procurement              153(1)
        Considering competitive procurement        154(1)
        Using a formal RFP process                 155(2)
      Selecting the Right Supplier: The n-2-1      157(7)
        Eyeing how this approach works             157(2)
        Use general info to identify the           159(1)
        Identifying the type of supplier you       160(2)
        Reducing your list to two finalists        162(2)
      Due Diligence: Verifying Critical Info       164(2)
        Be open with prospective suppliers         164(1)
        Demand they be open; don't assume          165(1)
        Visit their sites and customers            165(1)
      Timing Is Key                                166(5)
        Taking turns                               166(1)
        Identifying your business cycles           167(1)
        Identifying supplier lead times            167(1)
        Knowing the creation process takes time    167(3)
        Identifying both companies' internal       170(1)
        review/approval timelines
    Getting a Firm Grasp on Pricing                171(18)
      Understanding What Makes Up a Price          172(4)
        Adding the sum of the parts                172(2)
        Eyeing the price (p) and quantity (q)      174(1)
        Choosing the right unit of measure         175(1)
      Creating a Base Case                         176(5)
        Establishing the baseline                  176(1)
        Looking into your crystal ball             176(4)
        Determine retained organization costs      180(1)
        Determine ancillary costs                  181(1)
      Deciding What to Provide to the Supplier     181(3)
        Describing the pricing template you        181(3)
        Figuring out whether to share your costs   184(1)
      Analyzing the Proposal's Pricing Data        184(5)
        Considering other factors                  185(1)
        Comparing to the base case                 185(2)
        Comparing to the market                    187(1)
        Factoring in price performance             187(1)
        Renegotiating pricing of existing          188(1)
    Documenting Your Objectives and Reviewing      189(20)
      Creating the RFP Document: The               190(7)
      Service-Related Stuff
        Describing your organization               190(1)
        Describing your objectives                 191(1)
        Describing what you want                   192(2)
        Describing what you have                   194(1)
        Describing how you want to govern          195(1)
        Prescribing the structure of their         195(2)
      Walking through Some Important               197(3)
      Administrative Parts of the Process
        Making yourself available to answer        197(2)
        Making changes                             199(1)
        Handling no-bids                           200(1)
        Making your decision                       200(1)
      Evaluating the Parts of the Proposal         200(7)
        Use the evaluation form                    201(2)
        Evaluate the proposals for scope           203(1)
        Evaluate the proposals for price           204(1)
        Evaluate the terms and conditions          204(1)
        Evaluate the transition                    204(1)
        Evaluate the transformation plan(s)        205(1)
        Evaluate the solutions                     206(1)
        Evaluate the proposed steps                206(1)
        Down-select the suppliers                  206(1)
        Conduct due diligence                      207(1)
      Awarding the Service                         207(2)
        Alerting the winner (and losers)           207(1)
        Debriefing                                 208(1)
    Negotiating with Vendors and Signing on the    209(20)
    Dotted Line
      Knowing How Long Negotiating Takes           210(1)
      Drafting a Contract: What to Include         210(12)
        Master services agreement                  211(1)
        Terms and conditions                       212(1)
        Statement of work                          213(1)
        Units of measure                           214(1)
        Performance and service levels             214(2)
        Service credits and other penalties        216(2)
        Language to terminate a contract           218(1)
        Human resources                            219(1)
        The addendums                              220(2)
      Negotiating the Deal: The How and Why        222(5)
        Handling the important legal topics        223(1)
        Negotiating transition/transformation      223(1)
        Meeting business objectives                224(1)
        Functional work versus project work        225(1)
        Actually signing the contract              226(1)
      What to Do When Negotiations Break Off       227(2)
    Implementing the Transitions,                  229(20)
    Transformations, and Other Changes
      Defining Transition: Just the Basics         229(2)
      Transitioning the Big Four: What You Need    231(9)
      to Know
        Transitioning people                       231(4)
        Transitioning assets                       235(2)
        Transitioning responsibilities             237(1)
        Transitioning risks                        238(2)
      The Lowdown on Transformation                240(1)
      Making the Transformation                    241(3)
        Changing processes before outsourcing      242(1)
        Changing processes when you outsource      243(1)
        Changing processes after you outsource     244(1)
      Measuring Performance Rates during           244(5)
      Transitions and Transformations
        Take a snapshot of current performance     245(1)
        Take a snapshot after transition           246(1)
        Take a snapshot after transformation       246(1)
        Determine interim measures                 247(2)
  Part IV: Making Your Outsourcing Arrangements    249(74)
    Governing the Service and the Relationship     251(26)
      Grasping Service Management                  252(3)
        When to manage the service                 252(1)
        What needs to be monitored                 253(1)
        Who manages the service                    254(1)
      Eyeing Relationship Management               255(1)
      Understanding Governance Organization:       256(10)
      The How-To
        Selecting one governance model is ideal    257(1)
        Describing your governance policy          258(1)
        Using a master schedule                    258(2)
        Finding your way with meeting maps         260(2)
        Creating an escalation policy              262(1)
        Establishing a notification policy         262(1)
        Devising a demand management process       263(1)
        Making an impact management process        264(1)
        Focusing on your planning and              264(1)
        forecasting process
        Looking forward                            265(1)
      Determining Who Handles Governance           266(2)
        Identifying who manages service            266(1)
        Figuring out your relationship             267(1)
        management team
        Including other customers                  267(1)
        Defining your role in the process          268(1)
      Agreeing on the Official Report Card         268(3)
        Identify the official measuring report     269(1)
        Agree on the frequency and duration        270(1)
      Identifying When You Need a Change (And      271(1)
      How to Agree to It)
      Defining How to Handle, Escalate, and        272(5)
      Resolve Issues
        Identifying and handling the issues        272(1)
        Using an escalation map                    273(4)
    Communicating Your Outsourcing Plans           277(18)
      Identifying the Communication that Works     278(3)
      Best within an Organization
        Face-to-face meeting/assembly              278(1)
        Videoconferencing                          279(1)
        Web conferencing                           279(1)
        Telephone conference call                  279(1)
        Small group meeting                        279(1)
        One-on-one meeting                         280(1)
        Other options                              280(1)
      How to Communicate with the Appropriate      281(11)
      People and What to Say
        Communicating with employees               282(5)
        Informing customers                        287(3)
        Talking with suppliers                     290(2)
      Devising a Media Plan                        292(3)
        Figuring out what action to take           292(1)
        How to develop a media plan                293(2)
    Completing or Ending the Job                   295(16)
      Identifying the Legal Reasons to             295(2)
      Terminate a Contract
        Terminating for cause                      296(1)
        Terminating for convenience                296(1)
      Ending the Contract Prematurely: Why         297(2)
      Would You Want to?
        Positive reasons                           298(1)
        Negative reasons                           299(1)
      An Overview of Terminating a Contract:       299(2)
      The 1-2-3
      Understanding Your Options When              301(6)
      Terminating a Contract
        Contracting with another supplier          302(1)
        Chopping the outsourcing into pieces       303(3)
        Giving insourcing a shot                   306(1)
      Ending the Natural Life of the Deal          307(4)
        Having the next life planned               307(1)
        Renegotiating the contract                 307(2)
        Reaching the termination date              309(2)
    The Ethics of Outsourcing                      311(12)
      Understanding the Role of Ethics in          311(2)
      Eyeing Ethics toward Suppliers               313(3)
        Giving everyone a fair shake               313(1)
        Strawman opponent equals wasted time       314(1)
        and money
        Providing one (and only one) complete      314(1)
        version of information
        Don't hold back --- provide the            315(1)
        complete picture
        Oh yeah, he's a terrific employee          316(1)
      Sorting Out Ethics toward Employees          316(2)
        Deciding first and justifying afterward    317(1)
        isn't nice
        Being coy is cruel                         317(1)
        Giving false hope is hopelessly rude       318(1)
      Being Aware of Unethical Behavior that       318(5)
      Hurts Your Organization
        Rushing through deals                      319(1)
        Failing to stick to the schedule           319(1)
        Signing an incomplete deal                 320(1)
        Dealing through the back door              320(1)
        Going up the food chain for an answer      321(1)
        Unfairly complaining about the process     322(1)
  Part V: The Part of Tens                         323(16)
    Ten Benefits of Outsourcing                    325(6)
      Improved Services                            325(1)
      Improved Costs                               326(1)
      New Services                                 327(1)
      New Markets and Customers                    327(1)
      A Global Presence                            328(1)
      Availability in More Time Zones              328(1)
      Localization Capabilities                    329(1)
      Allocation of Risk                           329(1)
      Consistent Service Delivery                  330(1)
      Other Miscellaneous Benefits                 330(1)
    Ten (Plus One) Top Outsourcing Mistakes and    331(8)
    How to Avoid Them
      Pushing Your Problems onto a Supplier        331(1)
      Jumping in Too Fast                          332(1)
      Focusing Solely on Financial Costs           333(1)
      Ready, Fire, Aim                             334(1)
      Not Having Executive Support                 334(1)
      Delegating Too Far Down the Org Chart        335(1)
      Assigning the Wrong Person (Or Team) to      335(1)
      Lead the Outsourcing Effort
      Not Planning For All the Necessary Steps     336(1)
      (And Costs)
      Committing to Outcomes or Milestones Too     336(1)
      Telling Your Supplier How to Operate         337(1)
      Failing to Build an Accurate Baseline        337(2)
  Part VI: Appendixes                              339(2)
  Appendix A: Glossary                             341(4)
  Appendix B: About the CD                         345(8)
      System Requirements                          345(1)
      Using the CD                                 346(1)
      What You'll Find on the CD                   346(6)
        Budget Worksheet                           347(1)
        Risk Analysis Template                     347(1)
        Self Assessment                            348(1)
        Time Estimate Worksheet                    348(1)
        Pricing Tool                               349(1)
        Sample RFP                                 349(1)
        Sample Summary Tables                      349(1)
        Sample Evaluation Sheet                    349(1)
        Sample Contracts                           350(1)
        Sample Snapshots                           350(1)
        Escalation Map                             350(1)
        Master Schedule                            351(1)
        Meeting Map                                351(1)
        Resources                                  351(1)
        Sourcing Advisors and Law Firms            351(1)
        Areas Outsourced                           352(1)
      Troubleshooting                              352(1)
Index                                              353

Think outsourcing may be the best way to enlarge your talent pool and increase your profits? Outsourcing For Dummies gives you hands-on, step-by-step guidance in implementing an effective and productive outsourcing program that reduces costs and improves your company's capabilities. This practical, plain-English guide helps you prepare your people and plan an effective sourcing strategy. You'll find plenty of tips on negotiating with vendors, get help in drafting a binding contract, and find out how to verify and maintain compliance. Plus you'll get a handle on the importance of communicating with vendors; find ways to measure performance, productivity, and cost-effectiveness; get the lowdown on troubleshooting and solving outsourcing problems; and, if the arrangement isn't working out, get advice on ending the deal.Discover how to: Determine the costs and risks of outsourcing Identify qualified suppliers and consultants Minimize the impact of outsourcing on your employees Define the scope of your outsourcing program Decide whether to go offshore, nearshore, or onshore Understand the impact of cultural differences on outsourcing Document objectives and review proposals Plan for the disruption in business operations Deal with international employees and vendors Manage outsourcing relationships Protect your data from piracy Avoid common outsourcing mistakes Outsourcing can be the best decision your company has ever made -or the worst! Read Outsourcing For Dummies today, and get it right the first time.

Introduction. Part IMarketplace. Chapter 1: A Quick Overview of Outsourcing. Chapter 2: Understanding What Outsourcing Is and Isn't. Chapter 3: Cha-Ching: The Costs of Outsourcing. Chapter 4: Determining Whether Your Organization Is Ready to Outsource. Part II: Getting Your Outsourcing Ducks in a Row. Chapter 5: Preparing Your Organization (and Team) for Outsourcing. Chapter 6: What to Consider When Outsourcing in the International Arena. Chapter 7: Planning a Sourcing Strategy. Chapter 8: Defining Your Scope: What You Want to Outsource. Part III: Putting Outsourcing into Action. Chapter 9: Choosing Service Providers: The Selection Process. Chapter 10: Getting a Firm Grasp on Pricing. Chapter 11: Documenting Your Objectives and Reviewing Proposals. Chapter 12: Negotiating with Vendors and Signing on the Dotted Line. Chapter 13: Implementing the Transitions, Transformations, and Other Changes. Part IV: Making Your Outsourcing Arrangements Work. Chapter 14: Governing the Service and the Relationship. Chapter 15: Communicating Your Outsourcing Plans. Chapter 16: Completing or Ending the Job. Chapter 17: The Ethics of Outsourcing. Part V: The Part of Tens. Chapter 18: Ten Benefits of Outsourcing. Chapter 19: Ten (Plus One) Top Outsourcing Mistakes and How to Avoid Them. Part VI: Appendixes. Appendix A: Glossary. Appendix B: About the CD. Index.