Method, system and program product for funding an outsourcing project

• US 20060080119A1
• Filed: 10/12/2004
• Published: 04/13/2006
• Est. Priority Date: 10/12/2004
• Status: Active Grant

• Current Assignee: Kyndryl Incorporated, ServiceNow Incorporated
• Original Assignee: International Business Machines Corporation
• Inventors: Ricketts, John A., Kagan, Steven M., Hegmann, Katherine C.
• Granted Patent: US 8,606,613 B2
• Time in Patent Office: Days
• US Class Current: 705/35
• CPC Class Codes: G06Q 10/06 Resources, workflows, human or project management; Enterprise or organisation planning; Enterprise or organisation modelling
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes

Abstract

Under the present invention when a business process is desired to be outsourced from a client (e.g., a company or governmental unit) to a third party outsourcer, an outsourcing project is initially planned. Typically, the plan includes a plurality of overlapping phases that extend over several time periods. Thereafter, a cost for implementing the outsourcing project is estimated. Should the cost exceed a planned budget of the client, the excess/investment is addressed while an agreement between the client and the outsourcer for the outsourcing project is being reached. This can involve reducing scope, restructuring the overlapping phases to reduce or eliminate the excess cost, and/or integrating funding options to address the cost as part of the agreement.

Claims

1. A method for determining funding options for an outsourcing project corresponding to one or more business processes to be outsourced from a client to an outsourcer, comprising:

planning the outsourcing project, wherein the outsourcing project is planned to have a plurality of overlapping phases extending over a plurality of time periods;

estimating a cost to the client for implementing the outsourcing project;

restructuring the plurality of overlapping phases to prevent the cost from exceeding a planned budget of the client; and

presenting the outsourcing project after the restructuring.

2. The method of claim 1, wherein the outsourcing project is a Business Transformation Outsourcing (BTO) project.

3. The method of claim 1, wherein the outsourcing project is a Business Process Outsourcing (BPO) project.

4. The method of claim 1, wherein the planned budget of the client is based on a cost involved with implementing the business process at the client and anticipated benefits of the outsourcing project.

5. The method of claim 1, wherein the plurality of phases comprise a transfer phase, a rebuilding phase, a transitional phase, an operational phase, a performance phase and a transformation phase.

6. The method of claim 1, further comprising implementing the outsourcing project after the presenting step.

7. The method of claim 1, further comprising addressing funding to cover any excess of the cost beyond the planned budget of the client while an agreement between the client and the outsourcer for the outsourcing project is being reached.

8. The method of claim 7, wherein the addressing step comprises integrating funding into the agreement.

9. The method of claim 7, wherein the addressing step comprises making the outsourcing project self-funding from a perspective of the client.

10. A method for determining funding options for an outsourcing project corresponding to one or more business processes to be outsourced from a client to an outsourcer, comprising:

planning the outsourcing project;

estimating a cost for implementing the outsourcing project as planned, and an excess of the cost above a planned budget of the client; and

addressing funding to cover the excess while an agreement for the outsourcing project is being reached between the outsourcer and the client.

11. The method of claim 10, wherein the addressing step comprises the outsourcer acquiring at least some assets of the client related to the business process.

12. The method of claim 10, wherein the addressing step comprises the outsourcer collaborating with a funding source on behalf of the client.

13. The method of claim 10, wherein the addressing step comprises the outsourcer providing the funding to the client.

14. The method of claim 10, wherein the addressing step comprises the outsourcer reducing profit margins during early stages of the outsourcing project.

15. The method of claim 10, wherein the addressing step comprises the outsourcer performing the business process at a lower cost than the current level, and the outsourcer collecting the current level from the client.

16. The method of claim 10, wherein the addressing step comprises basing the cost on a portion of savings for the client when the business process is outsourced to the outsourcer.

17. The method of claim 10, wherein the addressing step comprises the outsourcer providing the client with business transformations associated with the business process to reduce the cost or increase benefits.

18. The method of claim 10, wherein the addressing step comprises the outsourcer providing the client with the business process on-demand.

19. A system for determining funding options for an outsourcing project corresponding to one or more business processes to be outsourced from a client to an outsourcer, comprising:

a planning system for planning the outsourcing project, wherein the outsourcing project is planned to have a plurality of overlapping phases extending over a plurality of time periods;

a cost calculation system for estimating a cost to the client for implementing the outsourcing project as planned, and for estimating an excess of the cost beyond a planned budget of the client; and

a funding system for providing funding options to cover the excess while an agreement for the outsourcing project between the client and the outsourcer is being reached.

20. The system of claim 19, wherein the funding system further ranks the funding options.

21. The system of claim 19, wherein planning system is further for restructuring the plurality of overlapping phases to reduce or eliminate the excess.

22. The system of claim 19, wherein the funding options comprise the outsourcer acquiring at least some assets of the client related to the business process.

23. The system of claim 19, wherein the funding options comprise the outsourcer collaborating with a funding source on behalf of the client.

24. The system of claim 19, wherein the funding options comprise the outsourcer providing the funding to the client.

25. The system of claim 19, wherein the funding options comprise the outsourcer reducing profit margins during early stages of the outsourcing project.

26. The system of claim 19, wherein the funding options comprise the outsourcer performing the business process at a lower cost than the current level, and the outsourcer collecting the current level from the client.

27. The system of claim 19, wherein the funding options comprise basing the cost on a portion of savings for the client when the business process is outsourced to the outsourcer.

28. The system of claim 19, wherein the funding options comprise the outsourcer providing the client with business transformations associated with the business process to reduce the cost or increase benefits.

29. The system of claim 19, wherein the funding options comprise the outsourcer providing the client with the business process on-demand.

30. A program product stored on a recordable medium for determining funding options for an outsourcing project corresponding to one or more business processes to be outsourced from a client to an outsourcer, which when executed, comprises:

program code for planning the outsourcing project, wherein the outsourcing project is planned to have a plurality of overlapping phases extending over a plurality of time periods;

program code for estimating a cost to the client for implementing the outsourcing project as planned, and for estimating an excess of the cost beyond a planned budget of the client; and

program code for providing funding options to cover the excess while an agreement for the outsourcing project between the client and the outsourcer is being reached.

31. The program product of claim 30, further comprising program code for ranking the funding options.

32. The program product of claim 30, further comprising program code for restructuring the plurality of overlapping phases to reduce or eliminate the excess.

33. A method for deploying an application for determining funding options for an outsourcing project corresponding to one or more business processes to be outsourced from a client to an outsourcer, comprising:

providing a computer infrastructure being operable to;

plan the outsourcing project, wherein the outsourcing project is planned to have a plurality of overlapping phases extending over a plurality of time periods;

estimate a cost to the client for implementing the outsourcing project as planned, and estimate an excess of the cost beyond a planned budget of the client; and

provide funding options to cover the excess while an agreement for the outsourcing project between the client and the outsourcer is being reached.

34. Computer software embodied in a propagated signal for determining funding options for an outsourcing project corresponding to one or more business processes to be outsourced from a client to an outsourcer, the computer software comprising instruction to cause a computer system to perform the following functions:

plan the outsourcing project, wherein the outsourcing project is planned to have a plurality of overlapping phases extending over a plurality of time periods;

estimate a cost to the client for implementing the outsourcing project as planned, and estimate an excess of the cost beyond a planned budget of the client; and

provide funding options to cover the excess while an agreement for the outsourcing project between the client and the outsourcer is being reached.