IDC Canada

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Effective Outsourcing Strategies
Featured guests
George J. Atis Dan McLean
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Slide Menu

• 2002 A year in review
• The Outsourcing Topology
• IDC Survey data
• Client-side methodology
• Vendor-side methodology
• Contacts

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2002 A Year in Review

• Canadian outsourcing market was strong in 2002
• Many Canadian contracts appeared
• 2.2B Canada Post and CGI
• 1.3B CIBC and HP Services (but doesnt really
  count)
• 700M Bombardier and CSC
• 660M OPG and CGEY
• 535M Manulife Financial and IBM GS
• 250M Sun Life and IBM GS
• 200M Desjardins Group and CGI
• 200M Alcan and CGI
• 160M Stelco and EDS

Typically five- to 10-year contracts
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The Outsourcing Topology
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Activities Currently Outsourced

N100 Q16. Which of the following activities do
you currently outsource? Source IDC Canada, 2002
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Determining Factor in Organizations Decision to
Outsource Activities

N100 Q18. What event ultimately prompted or
would prove to be the determining factor in
your organizations decision to outsource an
activity? Source IDC Canada, 2002
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Benefits derived from outsourcing a match
N177 A04. What do you perceive are the top 2
benefits/value derived from outsourcing? Source
IDC Canada, 2003
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If Outsourcing, Organization Prefers to Retain
Control Over
N177 A07. If or when considering to outsource
an aspect of your business, what ONE aspect of
control of your outsourcing arrangement do you
prefer to retain? Source IDC Canada, 2003
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Thoughts

• If a customer does not have a clear understanding
  of IT costs, then they should not outsource.

Is there a trend towards dealing with advisors
and brokers? Would they be helpful to you?

• General rule in outsourcing is have an exit
  strategy
• Are you equipped to take over when the contract
  expires
• Be vigilant in measuring performance and value

• Whats in store for IT service providers in 2003?
• Are telcos still targeting IT services? Theres
  evidence to suggest some are looking to retrench
  into familiar territory. Bell, Aliant, Telus.
• Consultants also want to be outsourcers
  Accenture, CGI, Bearing Point
• One-stop shops

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Contacts
George J. Atis George.Atis_at_mcmillanbinch.com Partn
er Chair of the Outsourcing Practice
Group McMillan Binch LLP Dan McLean
dmclean_at_idc.com Director, Outsourcing IT
Utility Services Research IDC Canada John
Pickett jpickett_at_itworldcanada.com VP
Editor-in-chief, IT World Canada Inc.
Mark your calendars Toronto, May 5, 2003
Info and registration at www.itworldcanada.com/e
vents