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Managing and meeting client expectations are major challenges in sourcing of IT-enabled services, and examples of failure abound. Additionally, it provides client organizations with an objective means of evaluating their sourcing capabilities. Data collection activities have included an extensive review of the published literature; interviews with clients, service providers, and advisors; and multiple workshops with global participation.

A full listing of these many individuals can Standardization. Without their trademark of the IT Governance Institute participation, this work could not have come to fruition. Complementary Models 8 Figure 2. Types of sourcing 9 Figure 3. Types of sourcing relationships 12 Figure 4. Continued growth of the worldwide outsourced services market 30 Figure 5. Practice Attributes 33 Figure 7. The Sourcing Life-cycle 34 Figure 8.

The Capability Areas 45 Table 1. The Capability Levels 47 Figure Capability Level 1: Performing Sourcing 47 Figure Capability Level 5: Sustaining Excellence 51 Table 2.

Capability Determination Methods 61 Figure Potential paths to Certification 62 Figure Decision Tree for type of Capability Determination 64 Figure Capability Determination flow 68 Figure Capability Determination timeline 75 Figure Practice Activities 75 Figure Supplemental Information for an Activity 76 Figure Parts of a Practice 82 Table 5.

Progression of documentation through the Sourcing Life-cycle Figure For many, this contract was ground zero of a fundamental restructuring of business that continues unabated today. But, as with any change of this magnitude, the gap between what companies hope to achieve through outsourcing and the results they actually get is still signiicant.

It argues that outsourcing, just like the deployment of new technology systems or the merger of previously separate companies, is a necessary, powerful and yet inherently complex undertaking. We may be years down range from the IBM-Kodak deal but there is still much about making outsourcing work yet to be learned. And, just as importantly, much of what has been learned has yet to be applied systematically — through a methodology that brings people, processes, and technology together into an efective, results-driven system.

In response, just as other areas of business have matured to become recognized professions with a well understood role in contributing to organizational success enabled by the skills and profes- sionalism of its practitioners, the same is now happening with outsourcing. Outsourcing profes- sionals are emerging across the business, operating within speciic functions and in company-wide capacities.

IAOP has made addressing the needs of these professionals the centerpiece of its role as the global, standard-setting organization and advocate for the profession. But, what about the organization, itself? How do organizations take that professional expertise and turn it into a repeated set of management processes that will ensure high-quality results, each and every time?

By addressing both sides of the client and service provider relationship, they provide the missing process maturity deinitions and standards that can be broadly applied by both clients and service providers.

For companies that provide outsourcing services, especially in the information technology-centric areas, eSCM helps them manage and reduce their risks and improves their capabilities across the entire sourcing life-cycle.

Companies use eSCM to irst evaluate their current capabilities and to then put in place action plans to improve them. It guides organizational processes that not only ensure delivery of the services customers expect but just as importantly guiding their eforts in designing and implementing those services. For companies that use outsourcing services, the client model, called eSCM-CL, addresses the organizational best practices needed to successfully source IT-enabled services.

Quite simply, no organiza- tion can survive relying solely on its own, internal resources. But, working across the boundaries of companies, working collaboratively to bring forward new innovative solutions, is a lot easier said than done.

Models, such as eSCM, and professional certiications, such as the COP, do just that — they take the collective experience of the industry and package it in a way that makes those learnings actionable and repeatable.

Our goal is simple; to further support their adoption and use globally so that organizations will achieve the beneits anticipated and possible through sourcing. Michael F. Today, due to the globalization, they focus much more on their core business activities. As a result, the outsourcing market has seen unprecedented development. And it continues to grow up. To cope with the competition and stay alive, the companies are and indeed must be more reac- tive, lexible and eicient; IT has to be aligned with the company objectives and strategy.

Sourcing, including outsourcing, is a key activity. For that reason, good relationships between the Client and the Service Providers are the founda- tion for success. To build such trusting relationships, the deployment of good practices is a absolute necessity. Finally, for client organiza- tions, eSCM is the only model which addresses the diferent areas of a sourcing policy.

To integrate sourced services with the businesses ongoing activities, it is vital to get on well together. Doing this allows client organizations to avoid many pitfalls. An outsourcing agreement is, primarily, a relationship between two people. To sustain a good relationship, two things are necessary: mutual trust and a minimum of transparency. Indeed, several Practices are devoted to the completion phase. A well balanced relationship is the key success factor for achieving successful coproduction of value for both parties, as is a relationship based on mutual trust, as trust constitutes the foundation of value creation.

Service Providers substitute for the internal resources to deliver the requested services as agreed. If they fail to fulil their obligations or if the Clients do not perform well enough the sourcing activities within their own organization, the expected value creation will be seriously impacted.

Value Management is the ultimate goal of the eSCM model usage. Investments in competence upgrading result in creating something of value for the individuals, as well as for the overall organization. It reinforces people motivation and improves the global performance of the organization delighted with the recognition of its demonstrated capabilities. To make the eSCM model famous, an association was set up to ensure the active promotion of it.

But to deploy such a model either as a client or as a service provider, the paper documentation is necessary but not suicient. In a nutshell, eSCM is more than a best practices sourcing framework - the model really instills a new culture of collaboration between Clients and their Service Providers. Initially outsourcing was used primarily for the manufacturing of industrial components, as well as for some non-core services such as facilities management.

Outsourcing of information technology IT started in the s when organizations commonly used timesharing of computer resources as a way to manage costs. In the s organizations started to outsource parts of their data processing operations to external service providers in an efort to achieve signiicant cost savings. More recently, IT-intensive projects and tasks, including engineering services, geographical information systems, multimedia content development, and transcription services are also being increasingly outsourced, as are other knowledge-intensive processes, such as various types of knowledge process outsourcing KPO or legal process outsourcing LPO.

Organizations are increasingly delegating IT-intensive business activities to service providers to take advantage of new growth in the global telecommunications infrastructure and emerging information and communication technologies ICT capabilities.

Over the past several years, many kinds of organizations, from manufacturing irms to banks to hospitals, have been delegating IT-enabled activities to external service providers because Copyright protected. In many cases, they have not been satisied with the results of these sourcing relationships. Managing and meeting client expectations is a major challenge for service providers in these business relationships, and examples of failure abound.

Complementary Models The eSourcing Capability Models are complementary Models, addressing both sides of a sourcing relationship Copyright protected.

It addresses the critical issues related to IT-enabled sourcing eSourcing. Version 2 was released in April Existing frameworks do not comprehensively address the best practices needed by client organizations to successfully source IT-enabled services.

It is intended to be a companion model to the eSCM-SP, focusing on the client aspects of successful sourcing relationships; it contains client-focused counterparts to more than half of the eSCM-SP Practices. Client organizations can be diferentiated by prospective service providers based on their eSCM-CL level of certiication and Practice Satisfac- tion Proile. Client organizations can also use their certiications to signal to customers, regulators, and investors that they have achieved a known level of capability in their sourcing activities.

Capability Areas are groupings of Practices with similar content and focus. Capability Levels represent a path of improvement for client organizations. Version 1. Chapter 1 of this book deals with the concepts of eSourcing and IT-enabled services. Chapter 4 discusses the use of the Model: implementing the Model and evaluating client organization capabilities.

Chapter 5 describes using the Model in capability determinations such as assessments, evaluations, appraisals, audits and certiication of client organizations against the Model.

Chapter 6 describes the internal structure of the Practices. Chapter 7 addresses interpreting the Model correctly in dif- ferent environments.

Chapter 8 is the bulk of the book: the 95 Practices.


ESourcing Capability Model ESCM SP

January The Model represents the best practices associated with successful sourcing relationships, addressing all the critical issues related to IT-enabled sourcing eSourcing for both outsourced and in-sourced shared services agreements. Research shows that outsourcing has improved performance, given better service quality, access to better technology, faster turnaround of critical information, improved processes and lowered costs. The success of eSourcing depends on the client-service provider relationships and requires both to build capability to address the critical issues in the sourcing lifecycle. The eSourcing Capability Model for Service Providers eSCM-SP provides a framework to strengthen client and provider relationships, cementing the partnerships and securing long-term success.


eSourcing Capability Model for Service Providers (eSCM-SP)

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eSourcing Capability Model

This will help satisfy global demand for better certification of companies offering outsourcing services. The development of the e-Sourcing Capability Model is a positive step toward maturation of the IT services industry and this model will be quickly taken up by leading service providers. India's offshore providers are expected to make use of this for independent certification of their winning "quality plus fair price" approach. This will elevate their role in the global industry and force other providers to do the same. Client organizations must realize that selecting a certified provider it still not enough to ensure the best return from sourcing expenditure.


eSourcing Capability Model for Service Providers eSCM-SP

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