Insourcing/ Outsourcing/ Collaboration. Dr Martin Lockett Dean of Academic Development, Ashridge

Transcription

1 Insourcing/ Outsourcing/ Collaboration Dr Martin Lockett Dean of Academic Development, Ashridge CIPD Police Forum Annual Conference October 2013

2 Ashridge a distinctive approach Ashridge is a non-profit charity that focuses on practising managers and professionals. We develop both managers and organisations. We work across public, private and non-profit sectors in the UK and internationally. Recent clients include Abu Dhabi Police Force, Metropolitan Police, Dorset Police and Ministry of Justice.

3 Research on people management Current & recent Ashridge research includes: Building responsible leadership European leadership Talent management Future leaders Influencing skills Complex teams The top leader journey Effective executive learning Managing Generation Y Personality and sales success Chinese leadership Mobile learning Developing the global leader of tomorrow

4 Agenda The choices you face systems / process/ function insourcing/ outsourcing onshoring/ offshoring alone/ together Why consider it? Myths - six of the best Can collaboration work in the Police? What choice to make?

5 Definitions Outsourcing Transferring an activity that you do to a 3rd party Offshoring Transferring an activity that you do to a distant location Systems outsourcing Transferring activity undertaken by your IT function Business process outsourcing Transferring a complete activity including IT support Function outsourcing Transferring a whole function to an outside provider

6 Once upon a time... "I think there is a world market for about five computers" attributed to Thomas J. Watson (IBM) all the calculations that would ever be needed... could be done on the three digital computers... in Cambridge,...Teddington, and...manchester attributed to Cambridge Professor Douglas Hartree

7 What has happened? The Cloud Internet Timesharing Distributed computing Own mainframe

8 Collaboration: alone or together?

9 Outsourcing/ collaboration life cycle

10 Agenda The choices you face systems / process/ function insourcing/ outsourcing onshoring/ offshoring alone/ together Why consider it? Myths - six of the best Can collaboration work in the Police? What choice to make?

11 HR under increasing pressure External pressures Cost Speed Service Security Customers Knowledgeable and Demanding HR Function New Technology Existing Systems Vendors/ Outsourcers

12 Why outsourcing? Strategic Insights Survey: An IT Leadership Perspective (Harvey Nash, 2009) [based on 1345 responses from senior IT managers across Europe]

13 Cost savings from outsourcing?

14 What IT is outsourced? Strategic Insights Survey: An IT Leadership Perspective (Harvey Nash, 2009)

15 Why offshoring? The cost argument

16 Patterns of offshoring Source:

17 Agenda The choices you face systems / process/ function insourcing/ outsourcing onshoring/ offshoring alone/ together Why consider it? Myths - six of the best Can collaboration work in the Police? What choice to make?

18 Myths six of the best 1. Outsourcing is cheaper

19 What needs to add up

20 The supplier challenge

21 Myths six of the best 1. Outsourcing is cheaper 2. Get the lowest price

22 Vicious circle in procurement?

23 Cost saving without outsourcing Offshore inhouse Simplify it - COTS - operations - purchasing Better return on investment - investment decisions - portfolio management - project management

24 Myths six of the best 1. Outsourcing is cheaper 2. Get the lowest price 3. Make the supplier take the risk

25 The NHS experience Ex-consultant pins down suppliers Huge procurement exercise Systems do not fit NHS structure Late and over budget Suppliers quit

26 A cautionary tale? Vallejo Police Outsource Report Writing The police department in cash-strapped Vallejo, Calif., may have found a way to save a little money. The Police Department is now using a transcription service based in Tennessee -- Nashville-McLintock Transcription and Consulting Services -- to write up its police reports. The reports are dictated into a digital audio file then sent via a secure connection to Nashville-McClintock, where retired law-enforcement officials write them up. The practice is less expensive than hiring new personnel and could possibly elicit more details from officers who might otherwise keep it brief if they had to do the typing themselves. The drawbacks, however, include both security and privacy issues. The University of California at San Francisco learned that the hard way when a transcriptionist in Pakistan threatened to release confidential patient records in order to force an employer to make good on wages. Besides rogue transcriptionists, the secure connection could be compromised and an unscrupulous third-party contractor could subcontract the work to a cheaper, and less experienced outfit. But at least department morale should get a boost. Nobody likes typing. Jackson West really hopes witness statements, victim details and other confidential information doesn't go walkabout.

27 Myths six of the best 1. Outsourcing is cheaper 2. Get the lowest price 3. Make the supplier take the risk 4. Offshoring is inefficient

28 Offshoring benefits Global expertise potential for best skills Substantial cost reduction (up to 70%) Supplier risk tolerance? Faster response and 24/7 working

29 UK view of best IT skills globally Harvey Nash 2007/08 Strategic Insights Survey - An IT Leadership Perspective

30 Myths six of the best 1. Outsourcing is cheaper 2. Get the lowest price 3. Make the supplier take the risk 4. Offshoring is inefficient 5. Culture is irrelevant

31 Three types of requirement

32 Myths six of the best 1. Outsourcing is cheaper 2. Get the lowest price 3. Make the supplier take the risk 4. Offshoring is inefficient 5. Culture is irrelevant 6. Collaboration is easy

33 Alone or together?

34 Across forces

35 Across public services

36 Agenda The choices you face systems / process/ function insourcing/ outsourcing onshoring/ offshoring alone/ together Why consider it? Myths - six of the best Can collaboration work in the Police? What choice to make?

37 Agenda The choices you face systems / process/ function insourcing/ outsourcing onshoring/ offshoring alone/ together Why consider it? Myths - six of the best Can collaboration work in the Police? What choice to make?

38 Outsourcing and/ or offshoring? Who? Where? MODE OF DELIVERY Onshore Mixed Offshore Insource Local function Distributed function Global centre of excellence Mixed Consultants/ contractors Mixed economy Global sourcing Outsource Classic outsourcing Global service providers Distance outsourcing

39 Collaboration?

40 Thank you Tel: