Managed Services Forum

About

There has been a marked shift in the world of outsourcing, where improved performance is as important as improved cost efficiencies.

The Managed Services Forum looks at the shift to a new business model. Hear from those with expertise in decision-making about outsourcing vs retaining expertise in-house and some of the operational issues that arise when you hand over your business processes to a third party.

  • Trends in Managed Services
  • All of Government Procurement and its effect on the marketplace
  • Protecting your IP in a managed service environment
  • Service aggregation: the benefits of ‘extreme outsourcing’
  • Managing multiple providers

Agenda

Agenda: Day 1

8:30

Registration and coffee

9:00

Opening remarks from the Chair

9:10

The latest trends in managed services – delivering better services

An overview of the latest trends in managed services. With a more outcomes-based approach than traditional outsourcing, we look at the shift from cost cutting as a reason to outsource to improving resource use and service satisfaction.
• The effect of this shift on buyers and service providers
• Managing service expectation and delivery
• ‘Buying in or making’: when external expertise is the best option
• The constraints of outsourcing

Peter Doherty, Senior Manager - IT Advisory, Ernst & Young Ltd

9:55

The effects of All of Government procurement on the marketplace

In this session we look at the Government Procurement Reform Programme and the effect of the state purchasing programme on the marketplace. With Government procurement accounting for a significant proportion of national GDP, how can the Centres of Expertise prevent negative market distortion? What have been the other benefits?
• Improving procurement capability across the public sector
• Has there been a corresponding improvement in service levels?
• Is there enough flexibility in procurement to enable departments to be fleet-footed and responsive to change?

John Ivil, Manager – All of Government Contracts, Ministry of Business - Innovation and Employment

10:40

Morning tea

11:00

Is there a limit to the services that can be externally sourced?

This session will explore how Serco brings service to life in 30 countries globally, including the 10-year contract to manage Mount Eden Corrections Facility where innovations to reduce reoffending are being closely assessed for expansion into other prisons in New Zealand.

There will be insights into how Serco manages people, processes, technology and assets in contracts of this scale, how innovation is the key to delivering operational efficiencies and answer the question - is there a limit to the services that can be outsourced?

Steve Hall, Contract Director, Serco -Mt Eden Corrections Facility

11:45

Case Study: Service aggregation: understanding the benefits and pitfalls of extreme outsourcing and having a supplier manage your other suppliers

As more companies progress toward a model of service aggregation, with one provider responsible for the management of all third parties to provide overall service delivery in an organisation, we examine the reasons why this business model was chosen by the Ministry for Primary Industries.
• How does Service Aggregation work?
• The benefits for of having less direct engagements across multiple suppliers
• Does the organisation still get the benefits of a competitive process?
• How do the operational and contractual responsibilities for performance sit within Service Aggregation?
• Where does all of this sit with All of Government initiatives?
• How the model differs from traditional outsourcing models where the procurer manages each of the third party suppliers

Bryce Johnson, Manager Service Delivery - Business Technology and Information Services, Corporate Services - Ministry for Primary Industries

12:30

Lunch break

1:25

Vodafone: Bringing IT and customer services back in-house

34% of outsourcing is brought back in house partly as a result of dissatisfaction with service. We look at a recent decision by Vodafone to bring its IT and customer service departments back from overseas and hire permanent New Zealand staff.
• A cost-effective solution: the tangible and intangible benefits
• The importance of retaining IP over products, services and applications in the decision making
• The decision to bring the roles back vs resolving any concerns arising from outsourcing

Kelly Moore, Director of Service, Vodafone New Zealand

2.10

Protecting your intellectual assets in a managed service environment

Deciding what to outsource can have implications for the intellectual property in your business. What processes should be retained in house and what can be safely outsourced? If you choose a managed services provider, how can you protect knowledge about your business and processes?
• Defining your core services and the expertise that should be retained in-house
• The risk of losing internal knowledge
• Protection in other jurisdictions

Nicola Silke, Senior Solicitor, Russell McVeagh

2:55

Afternoon tea

3:15

Managing staff transition during outsourcing

We look at some of the employment law issues that can arise when outsourcing functions.
• Procedural requirements when outsourcing to a new provider
• Maintaining key staff in the transition to a new service provider and assessing who they are
• Avoiding the re-employment of poor performing staff when moving to a new provider
• The other disruptive effects to be considered

Helen White, Employment Law Barrister

4:00

Panel discussion: What makes a good service provider?

In this session we look at some of the more successful service providers. What separates them from the rest?
• Improving customer service: is managed services the solution
• Measuring customer satisfaction with service delivery
• Are there some contracts not worth having?

Bryce Johnson, Manager Service Delivery, Business Technology and Information Services
Louise Francis, Senior Market Analyst, IT Services & Industry Insights
Bryce O'Kane, General Manager - Datacom Cloud Services for Government, Datacom Systems Ltd

5:00

End of day one & networking drinks

Agenda: Day 2

9:00

Welcome back from the Chair

9:05

The Business Case for Managed Services

It’s not easy for an organisation to decide to outsource some of its functions. Analysis, emotion and philosophy all play a part. So how does the decision making process work? In this session we will cover:
The role of the business case in deciding whether to outsource;
How to construct a successful business case.

John Bell, Partner| Consulting, Deloitte
James Clarke, Senior Manager, Partner | Consulting

9:50

Case study: Successfully transitioning to a new provider

In this session we examine the transition from in house ownership to an outsourcing provider. What are some of the key issues that need to be considered for a successful implementation? KiwiRail recently transitioned to a national facilities management provider. National Facilities Manager Tom Williams discusses his experiences in planning this changeover and with other projects.

Tom Williams, Facilities Manager, KiwiRail

10:30

Morning tea

10:50

Driving continuous improvement in an outsourced business

Both parties in a managed services contract can feel constrained by the contractual obligations and expectations of the other party. How can providers and clients manage continuous improvement in a managed service environment?
• Developing mechanisms for regular monitoring and reviews
• Benchmarking services against best practice
• Allowing for pricing adjustments

Brent Chalmers, Director, KPMG

11:45

Contracting for desired outcomes

The contract is critical in the transition to a managed service provider or when moving from one provider to another. Ideally contracts are structured for mutual benefit so that each party bears the appropriate risk. In this session we look at some key issues to be considered to achieve this.
• Developing clarity around scope and service
• Appropriate warranties
• Performance-based contracts: developing appropriate service levels agreements
• The tension between adherence to a contract and the need for flexibility

Joost van Amelsfort, Senior Associate, Simpson Grierson

12:30

Lunch break

1:25

Complex contract negotiation

In this session, we examine some of the skills required for successfully conducting a complex contract negotiation.
• Preparing for the negotiation
• The negotiation and contract process
• Common issues and how to avoid or resolve them
• Managing roadblocks and impasses

Dave Trueman, Partner, Simpson Grierson

2.15

Managing institutional differences to enhance international outsourcing success

The institutional environments of emerging economies such as China and India are different from developed economies (New Zealand and Australia). In this session, we look at challenges faced and mechanisms that can be applied to address the challenges of operating in relatively weaker institutional environments. We draw from a recent NZ case study and relevant academic literature.
• How do institutional differences make a difference?
• How can they be managed to enhance success?

Dr Revti Raman, Lecturer & UG Programme Director of International Business School of Marketing and International Business, Victoria Business School

3.00

Managing multiple providers

One benefit of outsourcing is access to external talent but what issues can arise in the augmented organisation where multiple contractors operate? How can difficulties arise with contingent staff in the same space?
• How do external providers create value in terms of how others perceive it?
• The importance of relationship management and organisational alignment
• Developing rules of engagement between the parties involved in service delivery

Ron Shaw, Project Manager, Soltius New Zealand

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