Co-Sourcing First Principles First; Simple Best practices to get the most out of an outsourcing relationship

Transcription

1 Co-Sourcing First Principles First; Simple Best practices to get the most out of an outsourcing relationship

2 Agenda Hexaware Overview Legg Mason Overview Engagement Overview Benefits Derived Lessons Learned

3 Hexaware Overview: Key Facts 174 Active Clients served worldwide 6500 Employees globally San Jose Chicago Mexico Toronto Boston London Paris Brussels Frankfurt Delivery New centers Jersey in Mumbai, Chennai, Nagpur, Pune, Atlanta Mexico, Bangalore, New Jersey Dubai Mumbai Nagpur Pune Bengaluru Chennai Bangkok Singapore Proximity Center Delivery Center Sales Office Sydney Tokyo 60+ Fortune/Global 500 clients 32 Offices worldwide USD mn Revenues in CY 10 Certifications CMMI Level 5, ISO 27001, PCIDSS Industry Recognitions Leaders category for The 2010 Global Outsourcing 100 by IAOP Ranked N0: 18 in the NASSCOM s Top 20 IT Service Providers India Best Employers for five consecutive years ( ) - Data Quest IDC Top 100 Innovative service Provider by Global Services CIO 100 Ingenious Award Golden Peacock Award

4 Legg Mason Overview: Key Facts A diversified global asset management firm, founded in 1899 Headquartered in Baltimore, Maryland, USA $672 billion in assets under management as of December 31, 2010 Approximately 3,550 employees with 34 offices around the world including New York, Miami, London, Tokyo, Singapore, Hong Kong and Australia Principal affiliates include: Western Asset Management (Fixed Income), Permal Group (Fund of Hedge Fund), Royce and Associates (Small-Cap), ClearBridge Advisors (Equity), Legg Mason Capital Management (Equity Value), Brandywine Global (Fixed Income, Equity) and Batterymarch (Quantitative) Global distribution capabilities with leading partners, including banks, brokerage firms, insurance companies and independent advisors

5 Engagement Overview

6 Legg Mason s Objectives Key Drivers for the Initiative Reduce IT costs per resource hour Create shrink & grow ADM capacity Expand breadth & depth of expertise at LM Improve process capability Increase operational excellence Quality Productivity Time to market Leverage resource pooling model Expectations from Strategic Partner Help achieve cost reduction through global execution model Be a partner-advisor rather than a vendor: Guide, Handhold and work jointly to make the relationship successful Provide the right blend of resources: Technical Domain Process Management Bring in the Best of Breed methodology Ability to ramp-up and ramp-down resources using a flexible execution model Proven Track Record Continuous Improvement through operational excellence and solution accelerators

7 RFP Evaluation Process RFP released to vendors based on previous relationships & analyst recommendations Score-card to short list vendors Industry Knowledge & Experience Vendor 1 Vendor 2 Experiences specific to the LM business & technology context Company Qualifications: Ability to service requirements Transition Methodology Governance Framework Risk Management & Exit Strategy Detailed due diligence with workshops to identify final partner Measure depth of expertise by meeting hands on Project Managers, SMEs through simulation of specific project scenarios Reference checks Measure alignment of cultural values of the 2 organizations Successful deployments of projects Contract Negotiation

8 Why Hexaware? Hexaware strengths are very closely aligned to the LM global sourcing objectives Experience in similar engagements with multiple Asset Managers Domain & technology experts in line with the LM context Relationships with relevant product companies Eagle, Thomson Reuters Leadership in PeopleSoft Services Specialized QA Solutions BPT Accelerators Pre-built test scenarios for Asset Management Strong Execution Capabilities combined with Solution Accelerators in J2EE,.Net, BI & BA tools Key Customer References Company Size & Values Flexibility & Scale Service oriented Alignment with long term cost objectives Co Sourcing Partnership

9 Engagement Approach Planning Transition Value Adds Infrastructure Setup Envisioning Setup Governance Model SLA Definition PMO and Delivery Team creation Project Specific Transition Execution & Improved SLAs Process optimization Y-o-Y Cost Savings Measurement for SLA Execution

10 Process Harmonization Framework Hexaware processes Legg Mason ODC Specific Processes Process Harmonization Framework Planning Phase Pilot Phase Service Phase ODC Specific Process 1 ODC Specific Process 1 Legg Mason s Methodology Hexaware Methodology Initial methodology ODC Specific process2 ODC Specific Process 3 Going Forward Methodology ODC Specific process2 ODC Specific Process 3 Process Tailoring ODC Specific Process 4 ODC Specific Process 4 Define Refine Optimize

11 Project Specific Transition Legg Mason Responsibility Matrix Hexaware SLA Phase 1 Planning Phase 2 Knowledge Transfer Phase 3 Responsibility Transfer Phase 4 Steady State Phase 5 Value Add Project Planning KT Onsite Shadow SMEs Reverse Shadow Onsite Reverse Shadow Offshore Business As Usual Value Addition Plan & Delivery Knowledge Transfer Offshore Offshore Development Center - Knowledge Base Hexaware s Proprietary Transition Framework

12 On-Site / Offshore Execution Model Legg Mason Hexaware Onsite Hexaware Offshore Discover & Analyze Acquire Business Knowledge Analyze and document the existing functionality Planning Tools, Adaptors, Components, Accelerators Transition Process Knowledge Transfer & Responsibility Transfer ASM Maintenance & Support Documentation Business Specifications for new systems Testing and QA Activities Development UAT Implementation/ Production Rollout Technical Specifications Coding and Unit Testing System Testing Domain Center of Excellence Program Management Technology Center of Excellence

13 CoE Model 1 2 Expertise Building Role Based Training Prototypes / Pilots Benchmarking Performance Methodologies Tools Framework Standardization Of Development Practices Center Of Excellence Improve Operational Efficiency 4 3 Project Initiation / setup Technical Helpdesk Improvements/Innovation Cost Of Delivery Focus Whitepapers Reusable Components Best Practices sharing

14 Continuous Improvements Framework Suggestion Analysis Project Specific process Process Assessments Goals and objectives Impact Analysis Work Planning Change Management Configuration Control Process Release Process Training Build IP/Tools/ Accelerators Use IP/Tools for improvement Non-conformance Analysis Improved Capability Causal Analysis Process Improvement Plan Process Improvements Improved Performance Metrics Analysis Improved Process Defect prevention Technology Change Reviews, Audits, Senior Management reviews, Metrics, Quantitative goals, Status reporting Customer Feedback

15 Governance Model

16 SLA Tracking & Reporting Process SLA Data Capture SLA Tracking SLA Analysis SLA Reporting SLA Performance Review Steering Committee (SC) Monthly Operational Review SLA Review Project Director Project Manager Weekly Consolidation SLA Weekly Analysis Generate SLA Report Daily Consolidation Team Leader Update Call Log Team Member Help Desk Prioritize / Assign Tools Case Tracking Tool Inquiry Reports Analysis Reports SLA Report Presentation Template

17 PMO driven Co-Sourcing CIO Pros: Multiple Lines of Business 1. Single point of contact from lines of IT Operations IT Strat Group Global Solutions Director 1 business to IT 2. Accountability for project execution App. Engg. Testing Infra Ops (transiti on) Solutions Director 3 Sourcing Office and sourcing 3. Centralized vendor management, 2 Project mgrs. Bus. Analyst Vendor Relatio nship Sourcing 4 Vendor Cons: sourcing and relationship management 1. IT Project request 2. Internal multi-sourcing 3. Additional resource request 4. Vendors sourcing PMO Application Engineering Testing Operations 1. Bottleneck in sourcing group 2. Difficult to measure value added by outsourcing Solutions Manager Vendor Infrastructure 3. Multiple touch points for the vendor complex reporting mechanism

18 Benefits Derived & Lessons Learned

19 Benefits Derived Resource risk mitigation Alignment with long term cost objectives Flexibility to scale the resource pool up & down Continuous development Standardized processes & documentation Test Accelerators & other IP Near-shore center

20 Lessons Learned Co-Sourcing best model for newbies Continuous fact-based refinement of metrics for defining success Continuous education of the organization about the model beyond the initial months Cultural differences Issues with night-shift

21 Thank You