In the world of Incumbents and InsurTechs, with Tech start-ups coming with new models around "You focus on your business, and we manage your technology", what are you thinking about your "Tech Resourcing Model"? Insource, outsource or hybrid? Why and why not?
Between Strategy and Execution, in the interdependent scheme of Technology Solutions Landscape, at the core, it's always about the RIGHT TEAM - the one, that helps you drive & derive the RIGHT or intended return across the value chain. (Name it - Changes to the existing or a brand-new initiative, tech roadmap definition, decision, design, implementation to manage, and finally the sun setting!)
In the realm of getting the RIGHT TEAM, the question is always - what, when, how and how much to retain and how much to outsource? A question that is more relevant than ever before: with pandemic, challenges for growth & protection of bottom-line becoming more prominent, burden of legacy technologies and changing market dynamics (business and technology) ...
This article aims to give you brief answers to the above question. A mini guidebook, if you will😊
Before we start, a quick snapshot of roles on the Tech Application landscape, roles that you want to fill RIGHT:
- Strategic Consulting - Business focused Tech. Roadmap, IT enabled Biz Process Design, Software Selection and ROI Measures
- Project and Program Management - beyond checklists - ability to interconnect, integrate and drive resources for right results
- Business and Tech Architecture - for defining the scalable and reusable architecture across the landscape
- Business & Systems Analysis - translating the business requirements into IT Specifications
- Application Configuration & Management - for building the Company specific content in the IT Platform: Products, Business Rules, Rating, Roles, Authorities etc
- Verification and Validation - for ensuring system works in accord with Business Requirements
- Software Development - to code where needed
- Data & Management - from warehousing to simple Reporting to Insights for decisioning - A subject in itself.
- Infrastructure & Network Management - for defining the right strategy in the context of DR, BCP, backups, fallbacks etc. and set up of scalable and stable infrastructure.
- ...
Whether to insource or outsource or go with a hybrid model is an Org. Decision. May be, it's time to take a step back and look at your resourcing model overall, check the market availability and come up with a plan for now and into the future.
A guiding question list exclusively for you, based on our experience - as you can see, it's a FLOW to the right conclusion: one leading to the other & finally the right insight and decision (obviously not be all and end all)
- What's my current resourcing model? What are the positives and focus areas, right now?
- What are my immediate and future needs? How does the current model meet with my needs?
- What are those needs that are one-time and those that are repetitive across value chain?
- If repetitive, what are my options? Should I build the competence internally? Is the effort worth at all? Can I get skill from the market easily? Can I temporarily outsource and transition to insource, over a period?
- What is the skill set needed, each level? Is it unique and needs continuous upgradation?
- If I intend to outsource or plan for hybrid, can I identify the right partner? What about control, availability and quality? What are the options and what is the best model that helps me get the continuing value?
- If I find the right partner/s, am I better off outsourcing majority, so I focus on my core business?
- Irrespective of the model, what's it that has to be within my control - for monitoring and measurement - for right results?
- What's the impact of this decision, on the Company & Culture? People, Processes & Technology? How do I plan for preparation and acceptance?
- ....
As you see the roles & questions list, we are sure you realize, or get an inkling, what's one-off and what repeats.
With the questions and roles in place and with you working through the answers and resourcing map, moving onto that next dimension - what should you look at, when you plan to outsource/go with a hybrid model, so the match is right?
There are a plethora of companies claiming high which match or go beyond your current skill needs - but how do you rely on them? This is where the identification parameters come into the picture -
- Experience/Expertise
- Culture Match
- Flexibility
- Openness & Communication
- Quality
- Cost vs Value (Return)
- Most important of all - Your importance for them (not the other way around)
Assessment of your outsourcing partner across all these parameters is key for finding the right match for your company. If done right, this could prove to be a one-time effort with your partner helping you across multiple initiatives for success.
Ultimately it all boils down to "where you want to have control" and "where you let others take charge". A combination that helps you consistently win - spend less & gain more; worry less & relax more; focus on core & delegate non-core. Those have to be your definitions!
Forget about goals and focus on systems instead! Goals are about the results you want to achieve. Systems are about the processes that lead to those results
The score takes care of itself - Bill Walsh (three time Super Bowl winner)
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