MANAGING OUTSOURCING OPPORTUNITIES

Objectives

At the end of this seminar, participants should be able to: - Identify the outsourcing opportunities in the economy - Develop strategies to take advantage of these available opportunities - Identify the skills and competencies necessary for rendering outsourcing service.

Content

- Outsourcing concept - Outsourcing opportunities in the economy - The outsourcing processes and procedures - Legal framework in outsourcing - Managing outsourcing relationships o Technical o Financial o Confidential o Logistics o People and culture

- Case studies

Outsourcing concept The concept of outsourcing is still developing as businesses grow and their particular needs expand and become more sophisticated. This is good because space exists for wings to flex and soar and creativity has no limit. This is probably another great reason why the concept and practice of outsourcing is considered valuable and necessary in business. Growth relies on it. Outsourcing is the process by which a company delegates or transfers part of its in-house operations to an external service provider through a contractual agreement, with the external service provider gaining full control over the operation/process. What outsourcing is meant to do is to transfer the decision rights and control to somebody who has acquired the core competences and let him do what is not core to you. For outsourcing to be successful, both you and your service provider must be prepared to invest time and effort in establishing and maintaining a long-term relationshipa partnership, not just a "hand off and forget" approach For most executives, outsourcing is simply a smart strategy to better manage resources and keep control over the cost of various inputs, such as accounting, payroll and HR functions. Outsourcing has become popular and therefore common practice among business professions these days. This is because hiring others to do particular jobs alleviates the load

and stress of the primary agent as well as ensures quality work by specialists in a given field

Outsourcing opportunities in the economy

The changing business in major economic climes has seen Nigerian companies catching on the outsourcing bug. From the banking sector to oil and gas, manufacturing to Information Technology and telecoms, major companies are increasingly embracing outsourcing for their business solutions to enable them achieve best results in a faster and cheaper way. The growing trend of outsourcing in Nigeria is due to several factors that include the budding competition amongst most organizations, the need to embrace market share, the need to make more profits, while seeing to the running of their core areas has made outsourcing a very attractive option for most organizations. This has therefore created a new market niche and opportunity for IT companies in the emerging Nigerian telecoms sector which has been growing in leaps and bounds in recent years. Below are some of the areas that businesses can be outsourced: Business Consulting Outsourcing. Finance & Accounting Outsourcing.(Audit, Tax, Financial Advise etc) Sales & Marketing Outsourcing.( Advertisement Business process Outsourcing (BPO) Outsourcing

 Information Technology Outsourcing (Programming, Software & Database etc) Human Resource Outsourcing( recruitment, manpower development etc

Outsourcing processes and procedures

Situation Analysis Outsourcing Options & Planning Contracts & Agreements

STEPS TO A SUCCESSFUL OUTSOURCING PROCESS

Identify your needs. Develop a RFP (Request for Proposal). Evaluation Process. Selection Process. Contract Execution. Administrative Functions. Close-Out. .

Legal Framework in outsourcing

The following should be duly considered before outsourcing

Duties and obligations of Outsourcer Duties and obligations of service provider

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Applicable law to outsourcing agreement Term of the Agreement Events of Defaults and Addressing Dispute Resolution Mechanism them Time limits Location of Arbitration Number of Arbitrators Interim measures/Provisional Remedies Privacy Agreement Non-compete Agreement Confidentiality Agreement Rules Applicable Appeal & Enforcement Be aware of local peculiarities
Taxes Confidentiality Contract risk

Survival after Termination of the main agreement

Managing Outsourcing relationships

TECHNICAL ISSUES: detailed specification for the work to be performed; schedules and deadlines for projects and penalties for failing to meet these deadlines; quality guarantees to measure development performance that comprehensively define the standards that need to be met; FINANCE: payment terms and cycles;

Confidentiality Communication and trust are intrinsically linked to each other When trust is damaged, communications suffer

Develop a communication strategy early in your relationship know how you will disclose information as well as how you will provide feedback. Periodically review your communication strategies Logistics - Select key personnel to use - What are the Constraints in operation and control

people and culture - Clarify roles and stick to them - Encourage teamwork - Communication styles and inter-personal relationship skill - Dealing with mindset