Carlos Gonzalez Yanes, Founder Institute
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Carlos González-Yanes Managing Partner CRITERION Strategic Services Group Founder Institute Puerto Rico Summer 2012 Semester August 29, 2012 Outsourcing, Partners and Suppliers…
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Outsourcing, Partners and Suppliers Switzerland Summer 2012 What should you outsource, and what do you need to do in-house? How to segment the vendors that you need? What vendors do you need right when you start, and what vendors will you need as you grow? How do you recruit and select the important vendors? What are tips and tricks to manage vendors in order to ensure a consistent level of quality? How do you fire and replace under-performing vendors? What are common mistakes made when dealing with vendors?
Transcript of Carlos Gonzalez Yanes, Founder Institute
Carlos González-Yanes
Managing Partner
CRITERION Strategic Services Group
Founder InstitutePuerto Rico Summer 2012 SemesterAugust 29, 2012
Outsourcing, Partners and Suppliers…
Why?
• Speed and Scalability
• Expertise (Hyper-especialization and †echnification)
• Cost Structure and Cost Reduction
• Flexibility
• Competition…
What?
• Define what is REALLY Core and Strategic.
Everything else is Support…
… and can be Outsourced.
Then, what is CORE?
• Where Competitive Advantage is.
• Where Intellectual Property is.
• Where Mid-term Growth is.
• Where Flexibility, Speed and Control are game changers…
CORE is…
• Software Design and Architecture
• Business Intelligence / KPI Control
• “Code Integrity” and Standarization
• Corporate Strategy / Funding
• …
So, what to Outsource?
• Professional Services: Legal, Accounting, HR, …
• Marketing: SEO, SEM, Advertising, PR, Lead Generation, Graphic Design, …
• Technology: Infrastructure, Web Design, Mobile, Back-end Apps, Hosting, CDN, Support, Testing, …
• Operations: Administrative, General, Input purchases, …
Typical Enterprise App. Portfolio:• Portal/CMS• Payments/eCommerce• CRM/ERP• Project Management• Analytics/BI• Collaboration• Administrative
What is the level of control that I need with these?
Outsource the tool, but control it inhouse
Selecting Vendor
• What service?
• Can I start small and cheap?
• Can it scale up?
• How is the level of support?
• Where will it be in 5, 10 years?
• Support & Development Ecosystem.
How to do it?
• Identify
• Evaluate and Compare– Not only price
– Trusted advisors/references
– Expertise/specialization
– Flexibility/Fit-to-need
• Be prepared: study the market, understand current prices and trends, methodologies, proposal structuring, mix & combos, …
How to set it up?
• Standarized, performance-based agreements
• Trials/Pilots (start with something!)
• Prizes, penalties for delays, thresholds, …
• Service Level Agreement (SLA): Quality, milestones, evaluation, termination, …
• Performance monitoring/dashboarding instead of final deliveries
• Review, review, review (weekly, monthly, Q.)
Software Development & CodingEmployee Contractor/F
reelanceInsourcing/local Out.
“Nearshoring”*
Offshoring
Benefit Control Some ControlFaster Replacement
Some Control“Packages”Warranties
Lower CostPackagesJoint Venture
Price
Risk ExpensiveRotationAvailability
RetentionCommitmentIP lossConflict of Interest
Long TermCommitmentOverhead Preassure
Language/CultureLearning CurveProject Management
High risk for very small/lean businesses
Expertise/ SkillsRequired
Vendor Management, Project Management, Architecture, Web Design, Software Development, Testing, Operations, Support, …
(Availability / Cost :: High – Low)
Important:
• Use Technology to control and enhance Vendor/Partner relation
• Business & IT Strategies must be aligned
• Do not depend on one sole vendor but be careful not to overstretch
• Keep in mind that a robust communication structure (seriously!) has to be in place
• Never give away your IP and your Core
Thank You!
1200 Brickell Ave., Suite 1950Miami, FL 33131 USA
Carlos González-Yanes
