Outsourcing Assessment
Background and Problem Summary
The Client is the pharmaceutical research and development division of one of the world’s largest manufacturers of medical supplies and devices, prescription and non-prescription drugs, skin care products, feminine hygiene products, and other healthcare/cosmetic products. They have a global presence in more than 40 countries.
The overall objective was to assess the current situation and provide recommendations for re-engineering IM & T’s application development infrastructure and processes to be better aligned with the Client’s business goals and objectives. In addition, the Client had more than 100 consulting companies providing application services. TBI was to assess the feasibility and advisability of outsourcing the application development and support functions to one major service provider.
To accomplish the Client’s objectives, TBI worked with them to determine the most effective organization structure, management systems and application development processes for their specific business needs. A major component of this assessment was to determine the most appropriate business driven and cost-effective role, if any, for strategic outsourcing of application development.
The Approach
TBI’s consultants used a combination of structured interviews, workshops, and document reviews to gather and assess the Client’s needs. This coupled with TBI’s industry, IT strategy and outsourcing best practices knowledge, were used to develop requirements and recommendations. Our approach is collaborative, and at least one full-time Client manager participated in the project team. Semi-monthly management reviews were used to discuss progress, review deliverables, and resolve issues.
A key component of the information gathering/assessment process was for TBI to define, validate, and articulate the Client’s vision, mission, value proposition, and strategy as it related to application development for pharmaceutical R&D.
The major activities required completing this project included:
- Project planning and scheduling
- Scheduling interviews and workshops
- Identifying, collecting, and reviewing key documents
- Conducting organizational reviews
- Conducting selected management interviews
- Reviewing and assessing the current situation
- Conducting management workshops to validate the situation assessment and review potential options
- Identifying outsourcing opportunities
- Identifying risks, including exit strategies and HR issues and opportunities
- Determining outsourcing strategy and desired vendor relationships
- Presenting base case assessment and recommendations to management
Successful Business Solution
TBI worked with the Client’s management and staff to develop: a base case assessment of their application development capabilities and performance; an outsourcing strategy; and a definition of outsourcing requirements. This effort involved defining and developing the following:
- A statement of the Client’s vision, mission, value proposition, and strategy as it relates to application development.
- Client’s information needs including:
- Information flow and business process models (high-level)
- Application development requirements (high-level)
- Application development outsourcing opportunities
- Opportunities matrix relating strategic initiatives (e.g., outsourcing, organizational changes, etc.) to business and research needs
- Client IT assessment and gap analysis identifying any misalignment of current IT capabilities, performance, and management processes with current and anticipated future business and research requirements
- Recommended strategies for:
- Organizational structure
- Management systems and processes
- Application development governance
- Staffing levels and skills both in-house and outsourced, balancing leading edge technology needs with day-to-day processing needs
- Staff recruiting and retention
- Change management processes
- Processes for interfacing with other Johnson & Johnson organizations
- Roles and responsibilities of application development management and staff
- Managing the relationship with IT customers, suppliers, and other interfaces
- IT roadmap, including:
- Time-frames and milestones
- Investment scenarios for next phases
- Preliminary impact assessment and benefits
- Recommended on-going planning processes and governance
