Complex outsourcing Solved © Ember PSS, 2013 In commercial confidence Page 1 BBC Case study Best Practice James Milner 04/07/2013 V1.0.

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Presentation transcript:

Complex outsourcing Solved © Ember PSS, 2013 In commercial confidence Page 1 BBC Case study Best Practice James Milner 04/07/2013 V1.0

Complex outsourcing Solved © Ember PSS, 2013 In commercial confidence Page 2 BBC Case study Outsourcing UK Public Sector BBC Common concerns The golden nuggets

Complex outsourcing Solved © Ember PSS, 2013 In commercial confidence Page 3 £10bn £20bn £100bn Public Sector outsourcing contracts are set to reach £100bn* by 2015 *Analysts – Cantor Fitzgerald 2013

Complex outsourcing Solved © Ember PSS, 2013 In commercial confidence Page 4 Nearly 50% of outsourced projects fail outright, or fail to meet expectations Aberdeen Group

Complex outsourcing Solved © Ember PSS, 2013 In commercial confidence Page 5 25million households £3.8bn revenues £150m collections costs 12m phone calls 2 nd largest prosecutor in UK 47 different ways to pay 2000 employees

Complex outsourcing Solved © Ember PSS, 2013 In commercial confidence Page 6 Outsource or in-house? How do we contract for an unknown future? What skills will the team need? How do we negotiate with FTSE 100 companies? Will bidders understand our issues? How do I convince my boss? Public Sector outcomes vs Private Sector goals

Complex outsourcing Solved © Ember PSS, 2013 In commercial confidence Page 7 Get Fit Clearly articulate requirements Meet the market

Complex outsourcing Solved © Ember PSS, 2013 In commercial confidence Page 8 Incentivise outcomes Unambiguous and Measurable

Complex outsourcing Solved © Ember PSS, 2013 In commercial confidence Page 9 Risk is best managed by party with most influence Reward appropriate

Complex outsourcing Solved © Ember PSS, 2013 In commercial confidence Page 10 Retain experts in-house Build sustainable governance and structures

Complex outsourcing Solved © Ember PSS, 2013 In commercial confidence Page 11 Flexible and future proof Retain a Plan B at all times

Complex outsourcing Solved © Ember PSS, 2013 In commercial confidence Page 12 Ensure service is fit for outsourcing Invest time articulating requirements Incentivise to achieve business outcomes Risk is best managed by the party with the most influence Rewards are appropriate and aligned with objectives Outcomes are clear, unambiguous and measurable Retain expert knowledge Ensure contract is flexible and future proofed Build sustainable governance and structures Maintain a plan B at all times

Complex outsourcing Solved © Ember PSS, 2013 In commercial confidence Page 13 £220m cost saving On target for £120m extra revenue Complaints reduced Reputation enhanced Long term partnership secured Recognised by CEO of supplier as the future of BPO deals