Guide to ICT Sourcing - Contents
Contents
Introduction
What is ICT?
What is ICT Sourcing?
Overview of ICT Sourcing
Evolution of Sourcing Strategies
Growth of ICT Outsourcing
ICT Outsourcing Policy
Why Organisations Outsource
Understanding Costs and Complexities is the Key to Success
Environmental Strategies for ICT Procurement
Managing ICT Sourcing as a Lifecycle
A Four-phase ICT Sourcing Lifecycle
Where does your Agency Sit in the Lifecycle?
Timing for Agencies that have External Sourcing Agreements
Phase I: Case for Change
Business Alignment
Heed the Lessons of Experience
Understand the Costs
Assess Current Satisfaction
Articulate the Trigger Point for Change
Understand the Effort to Change
Phase II: Decide Sourcing Strategy
Assess Sourcing Option
Assess Options Strategically and Economically
Renegotiate Existing Contract
Develop Procurement Plan
Phase III: Undertake Procurement
Implement Procurement Plan
Select Vendor(S)
Develop Contract(S)
Phase IV: Transition and Manage
Set Up Contract Governance
Transition
Manage Relationship
Manage Contract
Manage Operations
Review Periodically
Conclusion
Appendix A: Economic Diagnosis Tool
Appendix B: Relevant Legislation, Policies and Resources
Appendix C: Market Approaches
Glossary
Figures and Tables
Figure 1: Evolution of sourcing strategies
Figure 2: Growth of worldwide IT outsourcing spend, A$b
Figure 3: Growth of Australian IT outsourcing spend, A$b
Figure 4: The four-phase ICT sourcing lifecycle
Figure 5: Transition timeline for large agencies
Figure 6: Perceived value of your existing sourcing strategy
Figure 7: Calculate the real cost of transition, management and termination
Figure 8: Comparing the value of an external option with an existing self-managed approach
Figure 9: Checklist for assessing the qualitative value of your ICT sourcing contracts
Figure 10: Trigger point for change for self-managed agencies
Figure 11: Trigger point for change for externally managed agencies
Figure 12: Understand the effort to change
Figure 13: Disaggregate ICT and build broad options
Figure 14: Determine the type of vendor relationship needed
Figure 15: Map the priority of each sourcing option
Figure 16: Matrix for selecting vendors to continue in the RFT process
Figure 17: Decide level of collaboration with vendors
Figure 18: Define selection criteria
Figure 19: What tenderers expect during pre-proposal due diligence
Figure 20: Key areas of vendor due diligence
Figure 21: The vendor risk equation
Figure 22: Spread the termination costs
Figure 23: Vendor risks and business demand
Figure 24: Call options in agency business models
Figure 25: Service and a contract gaps
Figure 26: The real value of a sourcing contract
Figure 27: Perceived value and the real value calculations
Figure 28: Calculate the real value of the arrangement
Figure 29: Components of outsourced cost analysis
Figure 30: Components of a self-managed cost analysis
Table 1: Comparison of alliance options
Table 2: Options for agencies that self-manage ICT
Table 3: Options for agencies that outsource their ICT to a single vendor
Table 4: Options for agencies that outsource their ICT to multiple vendors
Table 5: Example of outsourced cost assessment in a bottom-up approach
Contact for information on this page: ICT Procurement