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Featured guests: Effective Outsourcing Strategies George J. Atis Dan McLean.

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Presentation on theme: "Featured guests: Effective Outsourcing Strategies George J. Atis Dan McLean."— Presentation transcript:

1 Featured guests: Effective Outsourcing Strategies George J. Atis Dan McLean

2 Slide Menu 2002: A year in review The Outsourcing Topology IDC Survey data Client-side methodology Vendor-side methodology Contacts



5 2002 – A Year in Review Canadian outsourcing market was strong in 2002 Many Canadian contracts appeared: $2.2B Canada Post and CGI $1.3B CIBC and HP Services (but doesnt really count) $700M Bombardier and CSC $660M OPG and CGE&Y $535M Manulife Financial and IBM GS $250M Sun Life and IBM GS $200M Desjardins Group and CGI $200M Alcan and CGI $160M Stelco and EDS Typically five- to 10-year contracts

6 The Outsourcing Topology Increase Efficiencies Keep up With Rapidly Advancing Technology Refocus Critical Resources Reduce or Stabilize Costs Drivers Losing control Complexity: what to outsource Cant bring IT back in-house - if I want Too risky, too uncertain Inhibitors Network and Desktop Operations Call Centre Help Desk Ecommerce Applications Outsourcing Application Development Data Centre Outsourcing Business Process Processing Services

7 N=100; Q16. Which of the following activities do you currently outsource? Source: IDC Canada, 2002 Activities Currently Outsourced

8 N=100; Q18. What event ultimately prompted – or would prove to be the determining factor – in your organizations decision to outsource an activity? Source: IDC Canada, 2002 Determining Factor in Organizations Decision to Outsource Activities

9 Benefits derived from outsourcing – a match N=177; A04. What do you perceive are the top 2 benefits/value derived from outsourcing? Source: IDC Canada, 2003

10 If Outsourcing, Organization Prefers to Retain Control Over… N=177; A07. If or when considering to outsource an aspect of your business, what ONE aspect of control of your outsourcing arrangement do you prefer to retain? Source: IDC Canada, 2003

11 Thoughts If a customer does not have a clear understanding of IT costs, then they should not outsource. General rule in outsourcing is have an exit strategy: - Are you equipped to take over when the contract expires - Be vigilant in measuring performance and value Whats in store for IT service providers in 2003? - Are telcos still targeting IT services? Theres evidence to suggest some are looking to retrench into familiar territory. Bell, Aliant, Telus. - Consultants also want to be outsourcers – Accenture, CGI, Bearing Point - One-stop shops Is there a trend towards dealing with advisors and brokers? Would they be helpful to you?

12 George J. Partner; Chair of the Outsourcing Practice Group McMillan Binch LLP Dan McLean Director, Outsourcing & IT Utility Services Research IDC Canada John VP; Editor-in-chief, IT World Canada Inc. Contacts Mark your calendars: Toronto, May 5, 2003 Info and registration at:

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