Complex outsourcing Solved

© Ember PSS, 2013 In commercial confidence Page 1

BBC Case studyBest 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

2007 2012 2015

£10bn£20bn

£100bnPublic 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 costs12m phone calls2nd largest prosecutor in UK47 different ways to pay2000 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 FitClearly articulate requirementsMeet 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 savingOn target for £120m extra revenue Complaints reducedReputation enhancedLong term partnership securedRecognised by CEO of supplier as the future of BPO deals