It Outsourcing And Supplier Management

Maximise your IT supplier ecosystem and build win-win relationships

What you'll learn

Formulate a forward-looking sourcing and supplier management strategy

Select suppliers using a systematic, evidence-based process

Craft and negotiate win-win contracts

Effectively onboard and transition-in suppliers

Manage and develop positive, constructive supplier relationships

Evaluate and manage supplier performance

Requirements

Some IT experience either as a client or a supplier is desirable.

Description

Most companies rely on external suppliers to deliver IT services and solutions.  With digitisation, new technologies and IT complexity, companies will become increasingly dependent on external suppliers.  Outsourcing in financial services has become a norm, with banks and financial institutions often signing large, long-term deals with IT providers. Those suppliers can either be a source of endless frustration, strategic business enablers or anything in-between.  The industry data suggests that the expectations from outsourcing and suppliers are frequently not met.  Getting the most out of suppliers and building win-win relationships can make all the difference.  Companies like Apple and Nike have shown how well-managed supplier ecosystems are integral to success and competitive advantage.  There are success stories and best practices that organisations can learn from and take advantage of.  This course is designed with that in mind.  The target audience for this course are those who are involved in IT outsourcing and external services, whether as a member of the supplier or client team.The course is organised as follows:Globalisation, outsourcing and supplier ecosystemsOutsourcing and supplier strategySupplier selectionContracts and negotiationSupplier onboarding and transitionManaging supplier relationshipsEvaluating supplier performanceThe video content is recorded as short, easy-to-digest modules to help learners navigate the course and refer back to individual topics that they might find useful.Note: This course was originally designed as a graduate course for the MSc programme @ Nanyang Technological University (NTU), Singapore.  As an in-class course, it has benefited hundreds of IT professionals.  The course will be updated with new materials as appropriate. 

Overview

Section 1: Globalisation, Outsourcing and Multi-supplier Ecosystems

Lecture 1 Course introduction

Lecture 2 Key terminology

Lecture 3 Globalisation and outsourcing

Lecture 4 Outsourced manufacturing

Lecture 5 Apple's global supplier ecosystem

Lecture 6 iPhone production in US vs China

Lecture 7 Economic theory of outsourcing - absolute vs comparative advantage

Lecture 8 But iPhone production is not possible in the US!

Lecture 9 Outsourcing means job losses, right?

Lecture 10 Outsourcing and multi-supplier ecosystem as part of a competitive strategy

Lecture 11 Boeing's multi-supplier ecosystem

Lecture 12 Supplier ecosystem as part of business strategy

Lecture 13 Outsourcing and multi-suppliers is the norm in the IT industry

Lecture 14 Flavours of outsourcing

Lecture 15 Multi-supplier ecosystem

Lecture 16 Ladder of supplier relationships - not all suppliers are equal

Lecture 17 Key take-away - effectively manage supplier ecosystems

Section 2: Outsourcing and Supplier Strategy

Lecture 18 Outsourcing at LMU

Lecture 19 IT services delivery

Lecture 20 Outsourcing at State Farm Bank

Lecture 21 Are you capable of doing it in-house?

Lecture 22 Motivations for using external suppliers

Lecture 23 Kraljic matrix - strategies for procurement

Lecture 24 Sourcing canvas - a framework for examining sourcing decisions

Lecture 25 Short-term vs. long-term perspective

Lecture 26 NSI and transformational outsourcing

Lecture 27 Scope of sourcing

Lecture 28 Total sourcing at DBS bank

Lecture 29 Deloitte's "Calling a Change" study (2005)

Lecture 30 Is outsourcing bad for the organisation?

Lecture 31 Regulatory considerations

Lecture 32 Supplier fit - aspects to consider

Lecture 33 Core competency

Lecture 34 Outsourcing decision matrix

Lecture 35 Outsourcing decision matrix example with Nike

Lecture 36 The infantilised argument

Lecture 37 Long-term outsourcing considered harmful?

Lecture 38 Crafting the sourcing strategy

Lecture 39 Key takeaway - sourcing strategy

Section 3: Supplier Selection

Lecture 40 CRACK criteria

Lecture 41 Request-for-Proposal (RFP) process

Lecture 42 Structure of an RFP

Lecture 43 Due diligence

Lecture 44 Regulatory requirements for due diligence

Lecture 45 Accenture study (2004) on supplier selection

Lecture 46 Supplier's perspective

Lecture 47 Classification of suppliers

Lecture 48 What defines sourcing success?

Lecture 49 Strategic sourcing is like a marriage

Lecture 50 Feeny competency model

Lecture 51 Single IT supplier?

Lecture 52 4 models of supplier configuration

Lecture 53 Outsourcing at Boeing - it can backfire!

Lecture 54 key takeaway - partnership approach

Section 4: Contracts and Negotiation

Lecture 55 People have different expectations

Lecture 56 Supplier expectations - types of expectation

Lecture 57 Aligning expectations

Lecture 58 General types of contract

Lecture 59 Not just about price

Lecture 60 Structure of an agreement

Lecture 61 Failure to deliver and liabilities

Lecture 62 Case: Outages at DBS bank

Lecture 63 Disruption and impact tolerances

Lecture 64 Using SLAs

Lecture 65 Negotiations and common interests

Lecture 66 Lack of common interests is not unusual

Lecture 67 The 5 negotiation outcomes

Lecture 68 Tips for successful negotiations

Lecture 69 Don't select based solely on price

Lecture 70 Winner's curse

Lecture 71 Winner's curse example - BSB Sky vs HP

Lecture 72 Key takeaway - win win contract

Section 5: Supplier Onboarding and Transition

Lecture 73 Pre and post contract phases

Lecture 74 Knapp model of relationship development

Lecture 75 Onboarding and transition objectives

Lecture 76 Organisational redesign

Lecture 77 Cultural fit

Section 6: Managing Supplier Relationships

Lecture 78 Low success rates for outsourcing projects

Lecture 79 Evolution of the relationship - DBS and IBM

Lecture 80 Contract no guarantee of sourcing success

Lecture 81 Investing in relationship quality

Lecture 82 Tell tale signs of an unhealthy relationship

Lecture 83 Factors in partnership success (McKinsey 2015)

Lecture 84 McKinsey's 6 building blocks of successful partnership

Lecture 85 Sourcing governance

Lecture 86 Partnerships as organisms

Lecture 87 Contractual vs. normative relationship

Lecture 88 Trust and the trust equation

Lecture 89 Deloitte global outsourcing survey (2022)

Lecture 90 Key take away - trust and transparency

Section 7: Evaluating Supplier Performance

Lecture 91 Some questions about satisfaction

Lecture 92 Sainsbury's and Accenture disaster (2000)

Lecture 93 TSB migration goes awry

Lecture 94 Deloitte outsourcing study (2005) - negative experiences with outsourcing

Lecture 95 Warning signs of supplier shortcomings

Lecture 96 Client competence also at question

Lecture 97 4 elements for managing supplier relationships

Lecture 98 Potential areas of evaluation

Lecture 99 KPIs - easy and harder to measure

Lecture 100 Balanced scorecard approach

Lecture 101 JPMorganChase and IBM - changing plans

Lecture 102 Sears vs CSC

Lecture 103 Changes in supplier strategy & ecosystem

Lecture 104 Stressed exits

Lecture 105 Supplier exit and termination options

Lecture 106 Key take away - performance management

Those involved in working with suppliers delivering IT-related services.,Those involved in working with clients as a supplier delivering IT-related services.,Those involved in account management or project management in IT-related fields.,Those seeking to prepare themselves for client or supplier facing roles.