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2, Knowledge Management, knw01, Ongoing, 4, Policy, Share knowledge, Establish and implement a policy to share knowledge among srakeholders. 3, knw 1 The esourcing Capability Model for Service Providers (escm SP) v i The escm SP v Model Overview The esourcing Capability Model for Service. The eSourcing Capability Model for Service Providers (eSCM-SP) V, Part 1 – Model Overview. CMU-ITSQC Pittsburgh, PA: IT Services Qualification.

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Heston, and Mark C. Carnegie Mellon is a registered trademark of Carnegie Mellon University. ITIL is a registered trademark of the U. Office of Government Commerce. External use Except as permitted by Consortium agreements, requests for permission to reproduce this document or prepare derivative works of this document for external and commercial use should be addressed to the ITSqc Director.

Internal use Permission to reproduce this document and to prepare derivative works from this document for internal use is granted, provided the copyright and No Warranty dscm are included with all v2.001 and derivative works. Abstract Organizations are increasingly delegating their information technology IT intensive business activities to external service providers to take advantage of the rapid evolution of the global telecommunications infrastructure.

The business processes being outsourced range from routine and non-critical tasks, which are resource intensive and operational, to strategic processes that directly impact revenues. Managing and meeting client expectations is a major challenge in sourcing of IT-enabled services, and v2.01 of failure abound. The esourcing Capability Model for Service Providers escm SP is a best practices capability model with three purposes: In November the escm v1.

After significant evaluation and revision, the escm for Service Providers escm SP v1. This document provides valuable information about the escm SP, its implementation, and methods to evaluate and certify service providers.

Keywords escm, escm SP, esourcing Capability Model, service provider model, quality models and systems, capability models, business process outsourcing, IT-enabled sourcing, esourcing, IT-enabled services, ssp, outsourcing models, sourcing.

Carnegie Mellon University makes no warranties of any kind, either expressed or implied, as to any matter including, but not limited to, warranty of fitness for purpose or merchantability, exclusivity, or results obtained from use of the material. Carnegie Mellon University does not make any warranty of any kind with respect to freedom from patent, trademark, or copyright infringement.

Editorial and technical writing support was provided by Ken Mohnkern. B2.01 This effort was made possible through the assistance of many individuals.

Raj Reddy, provide ongoing guidance to the team: We want to thank participants of our Early Adopters Workshop for their inputs into model changes. Madhu, of Satyam Computers, Ltd. Usability support was provided by Simone Shapiro. Finally, this work was enabled by our research and administrative staff, especially Elise Nawrocki, Ava Cruse and Kelly Widmaier.

Types of sourcing services 5 Figure 2. Types of sourcing relationships 15 Table 1. Major Market Sectors and Services 22 Figure 3. The escm SP v2 23 Figure 4. The Sourcing Life-cycle 25 Figure 5. The Capability Areas 30 Table 2. The Capability Levels 31 Figure 7. Providing Services 32 Figure 8. Consistently Meeting Requirements 32 Figure 9. Managing Organizational Performance 32 Figure Proactively Enhancing Value 33 Table 3. Sustaining Excellence 39 Table 4.

Comparison of Frameworks 41 Table 5.

Publications Archive: eSCM-SP v2.01, Part 1

CMMI framework 48 Table BS framework 51 Table COPC framework 54 Table The measurement path 61 Table Capability Determination Methods 62 Figure Potential paths to Certification 63 Figure Decision Tree for type of Capability Determination 64 Figure Capability Determination flow spp Figure Initially outsourcing was used primarily for the manufacturing of industrial components, as well as for some non-core services such as facilities management.


Outsourcing of information technology IT started in the s when organizations commonly used timesharing as a way to manage costs. In the s organizations esscm to outsource parts of their data processing operations to external service providers in an effort to achieve significant cost savings.

The s and s witnessed the establishment of some landmark outsourcing agreements that involved the shifting of entire IT operations to external service providers. The rapid globalization of business, and the increased focus on core competencies in the late s esc, the s also led organizations to extend the concept of outsourcing to IT-intensive business processes.

These business processes included customer care, financial and payment services, human resource services, information services, and logistics. More recently, IT-intensive projects and tasks, including engineering services, geographical information systems, multimedia content development, and transcription services are also being increasingly outsourced. The primary drivers for this trend are increasing competitive pressures, a need to access world-class capabilities, and a desire to share risks.

These services currently range from routine and non-critical tasks that are resource intensive and operational in nature to strategic processes that directly impact revenues.

The outer circle, Sourcing, is excluded from esourcing. Service design and deployment activities focus on designing the delivery processes, setting up a technology infrastructure, and managing the skills needed for service delivery. The client may transfer personnel, knowledge, and the service delivery infrastructure to the service provider. The service delivery phase typically spans multiple years, and often includes continuous or repetitive tasks. The service provider may transfer personnel, knowledge, and the service delivery infrastructure to the client at the completion of the contract.

Types of Sourcing Relationships The rapid evolution of the Internet and the increased availability of bandwidth have facilitated the formation of geographically dispersed organizations. This ability to extend past geographical boundaries has contributed to the growth of esourcing and has made possible the formation of a b2.01 variety of sourcing relationships.

These relationships typically fall broadly into one of the following categories: Often, one of these providers is internal and the other is external to the client.

The client takes responsibility for managing and integrating the services of the various service providers.

ITSqc Publications Archive: eSCM-SP v, Part 1

Often, one of the service providers has a primary role in interfacing with the client on behalf of the alliance. Often, the first client may be part of the joint venture. Often this group must compete with external suppliers or service providers for work. Sourcing, as used in this report, refers to any and all of these types of relationships.

Figure 2 provides a graphic depiction of these sourcing relationships. Types of sourcing relationships The types of sourcing relationships are illustrated here. Note that, in some cases joint venture and insourcingthe client is involved in both sides of the relationship.

This ranges from a single task e. For example, sourcing legacy payroll systems while a new payroll sl is being developed. The intent of transitional sourcing is not to source the function long-term, but only for the duration of the transition period [Willcocks ]. The evolution of the Internet and the global telecommunications infrastructure has provided client organizations with a choice of service providers located anywhere in the world.

Simultaneously, competitive xp have driven organizations to find the most cost-effective way to get the IT-enabled services they need while maintaining or improving their quality of service. Many studies confirm outsourcing s current rapid growth path. According to a study by AMR Research, 50 percent of IT companies will outsource a portion of their business inup from 20 percent in [Gardner ].


The escm SP v2.01: Model Overview

New outsourcing opportunities are also esc for finance and accounting functions. Approximately 30 percent of the companies that participated in a survey by Accenture and the Economist Intelligence Unit reported that they currently outsource finance and accounting functions, with two-thirds of those characterizing the arrangement as successful or very successful [Business Wire ]. Perhaps the most obvious reason for the growth of outsourcing is cost savings.

Outsourcing certain business esxm often costs less than hiring, maintaining, and training in-house staff, and acquiring the necessary technology and infrastructure to handle these functions, many of which are highly-regulated [TrainExcel ].

Outsourcing operational and administrative functions that do edcm generate revenue eacm companies and departments to focus on their core business and on their customers needs.

For example, by outsourcing human resources HR tasks like payroll administration, and data-entry and maintenance of employees information, the HR department is free to focus on being the company s employee advocate, business change agent, and strategic business partner [TrainExcel ]. In addition to these factors, recent advances in network security, leased lines, and storage have made it technically easy to outsource [Gardner ].

Technological barriers to outsourcing are being diminished.

Companies that are considering significant technology upgrades often find outsourcing a beneficial alternative. Service providers invest in the technologies, methodologies, and people required to excel in their area of expertise. They work with many clients facing similar challenges, and become experts in solving those particular problems.

The clients also gain experience and an ability to innovate by taking advantage of the service providers expertise and capable people.

Business Process Outsourcing BPO is a special class of outsourcing that deals with business functions that are more central to the client s business than those that are traditionally outsourced. These may even include strategic processes that have otherwise been kept in-house. According to a Forrester report [Ferrell ], four business segments are excellent candidates for successful and effective BPO: IDC study of over senior executives from a wide range of industries found that organizations are expanding beyond traditional IT outsourcing, delegating business processes that are closer to their core competencies, including some human resources processes 19 percent of the respondentscall center or customer care activities 18 percentand some logistics and supply chain management processes 16 percent.

An even greater number of respondents said they are likely to outsource more of these business-related functions and processes in the future [Canada Newswire ]. Critical Issues for esourcing The advantages of sourcing do not come without risk. The study released by Accenture and the Economist Intelligence Unit [Business Wire ] cited the three risks most often considered: Even after overcoming these initial concerns and contracting with a service provider, clients often find that sourcing is not fully meeting their needs.

Twenty percent of respondents to an InformationWeek survey said that their outsourcing experiences had not met their expectations. In addition, many clients need to renegotiate sourcing contracts and reevaluate their choice in service providers.