Method, system and program product for funding an outsourcing project
View Patent ↗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.
1. A computer implemented method for funding an outsourcing project corresponding to one or more business processes to be outsourced from a client to a chosen outsourcer, comprising:
planning, with a computer device, the outsourcing project, wherein the outsourcing project is planned to have a plurality of overlapping phases extending over a plurality of time periods;
estimating, with the computer device, a cost to the client for implementing the outsourcing project, wherein the cost has a plurality of levels depending on a stage in the plurality of overlapping phases;
in response to a determination, by the computer device, that the cost estimated for overlapping phases during a particular time period will exceed a planned budget for the particular time period in the plurality of time periods, restructuring at least one of the plurality of overlapping phases prior to a start of the outsourcing project to prevent the cost from exceeding the planned budget of the client during the particular time period; 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 computer implemented method for funding an outsourcing project corresponding to one or more business processes to be outsourced from a client to a chosen outsourcer, comprising:
planning, with a computer device, the outsourcing project;
estimating, with the computer device, a cost for implementing the outsourcing project as planned, and an excess of the cost above a planned budget of the client for every stage in the plurality of overlapping phases, wherein the cost has a plurality of levels depending on the stage in the plurality of overlapping phases and the excess of the cost is a determination that the cost estimated for overlapping phases during a particular time period will exceed a planned budget for a particular time period; and
addressing funding for at least one of the plurality of overlapping phases 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.