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Shaping Relationships that Last - Principles of Dynamic Outsourcing
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Author: Computer Sciences Corporation
 Date: September 19, 2006

Summary:
Business needs and priorities are changing more quickly than ever before. Technology is also shifting rapidly, and it is now common for breakthrough changes that offer new capabilities and business possibilities to occur within the life of the typical outsourcing contract. Alignment of business strategy and technology direction is crucial.

In this new and challenging business context strategic sourcing partnerships are expected to play a greater role in enabling innovation, transformation and improved business agility as well as in providing “best-in-class” services. Dynamic Sourcing is a unique approach to partnership which aims to address this broad and challenging business agenda – contributing more directly to business goals, adapting to changing IT and business imperatives, and helping clients address the challenges and opportunities of today’s multi-partner IT and process sourcing environments.

The Dynamic Sourcing approach to partnership is based on five key principles:

“Focus on Business Outcomes”
Increasingly, the technical goals and measures within outsourcing contracts are becoming secondary to the business outcomes that the overall sourcing strategy aims to accomplish or support. In Dynamic Sourcing the relationship is designed around the client’s business objectives, enabling more dynamic alignment with changing business priorities over time.

“Create a Collaborative Sourcing Model”
Dynamic Sourcing acknowledges the need for each sourcing transaction to be designed to integrate into a collaborative multi-sourcing model, as well as to be optimal in its own domain. Provisions are made to combine the capabilities of CSC, our client and other partners to optimize end-to-end service delivery, process efficiencies and business value.

“Align Client and Supplier Behaviours”
There is an explicit recognition that many of the assumptions that underpin the initial transaction will change, as will the required performance levels and economic expectations. Accordingly Dynamic Sourcing is explicitly designed to actively accommodate and exploit change and deliver sustainable business value over time for all parties.

“Build Mechanisms for Sustainable Transformation”
CSC’s Dynamic Sourcing approach envisages sustainable and iterative, IT service and process transformation throughout the life of the sourcing relationship, closely aligned to the client’s changing business priorities and processes.

“Ensure Shared Governance/Processes”
Dynamic Sourcing acknowledges the prevalence of multi-partner IT and process sourcing in major organisations today, and incorporates collaborative governance and service management mechanisms that enable effective end-to-end service management, whilst reducing coordination cost and risk.

To find out how CSC's Dynamic Sourcing approach can produce results for your organisation, please Contact Us



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