Feroz Khan – Director – The Boston Consulting Group – India

Industry –

Strategic& Technical Consulting

Current project –

Business Transformation through Digital Innovation

Most proud achievement –

Transforming a healthcare insurance company which was running in
losses from many years and making it profitable within one year by
reducing their IT spend from 45% to 5% through digital innovations

Dream project –

Implementation of Artificial Intelligence and Machine Learning technology for a Financial Institution Contact Centre Operations

Team size –

24

Total IT / Technology budget (people + Infra + outsourcing + Services –

Handled 100+ Mil USD

Are organizations missing a trick by not creating a “Chief Insourcing Officer” post?

Yes, absolutely! In my opinion, the organizations are missing a whole
lot of potential by not creating and appointing a Chief Insourcing
Officer. By not having a CIO, the organizations are at the risk of
losing synergy which in-house innovation can provide and the growth that
the teams can provide to the organization through the skills gained by
the insourcing solutions.

What according to you defines Insourcing in your industry?

insourcing in the strategic consulting industry directly
relates to the development and rise of the organization by working on
its own Intellectual properties and methods. This is made possible by
making the team feel like an integral part of the company and
translating this into the success of the business by bringing in the
knowledge base which has been outsourced and working on them in-house to
ensure constant and perennial growth and development.

Why is it gaining momentum in your industry?

In the strategic consulting industry, the quality and intellectual
property of the organization is beyond anything else and is of the
highest importance. We take pride in delivering the best in class output
through our USPS and we cannot risk losing them through outsourcing
procedures. In order to ensure continuous and complete growth of the
organization and delivery of our client’s successes, insourcing has been and will keep gaining momentum.

How is it better than the earlier pre-outsourcing situation?

The previous pre-outsourcing situations focused upon cost economics,
and there was much less focus on quality and the economics of delivery
per say. The mantra was only to assure that business is done as usual
operations without thinking about how operations can improved upon and
made cost effective. insourcing is however more focused on
transformation and innovation to create better methods and procedures
which are cost effective and more efficient. The resources need to be
better managed and governed through insourcingmethodologies.

What services lend themselves best to outsourcing in your industry?

Most of the times, there are financial shared services and contact
center based services which are not core and not highly important for
the company which are outsourced.

How difficult or easy was Insourcing transition for you?

It was not an easy decision or task to perform, the insourcing
transition. There were multiple stakeholders involved which included
operations, finance, controller, HR, legal, IT and more and all had to
brought on the same page and plane in order to ensure that the entire insourcing transitioning process is streamlined and successful. We believe in values and ethics, which are core to our business and only insourcing was the option to go for in order to ensure long time success and growth.

What percentage of IT is currently insourced and how do you see it stabilising in two years’ time?

In our organization, almost 80% of the IT has been insourced and only
20% of the operations and IT services are left for the outsourced
model. These are mostly end user computing services. Moreover, we plan
to get this stabilized as the knowledge base we have inculcated over the
years will help us transition and bring the business to usual with all
in-house processes.

What are the key considerations for successful Insourcing?

In order to implement and maintain a correct insourcing
solution which can ensure long lasting growth and development, it is
important that planning and management of knowledge retention is
performed. This, blended with the specialized / engineered insourcing
programs and re-skilling procedures act as the key elements of
implementing an efficient insourcing model. The center of excellence built over capability maturity models will act as a key to success of the insourcing solution.

Who are the key support partners for successful Insourcing?

Support from Finance, HR and strong business operations is necessary and act as key support factors for ensuring a successful insourcing operation.

How can a CIO create a solid business case for Insourcing?

CIO can create a solid business case around insourcing by
bringing in qualitative assessment theory of the business success.
Productivity improvement will be another factor for business case.
Overall the TCO will be get reduced in the steady state and that will be
a good business case for insourcing.

What are the key consideration is budgeting Insourcing transition costs?

In any insourcing transition process, the key budgeting insourcing
transition costs include those of resource cost and those which are
incurred in the required training knowledge retention operations. This
mostly includes those operations which are used to keep the knowledge
base strong and updated.

How can one ensure that the in-house IT will be able to support future requirements and innovations?

The IT team which is kept in-house is but only a traditional IT team
which supports the business information system and makes sure that the
growth towards the future of the IT and the company is consistent and
constant. The IT teams will understand the business process in the
perfect manner and thus will be able to make the necessary innovative
changes required for the future growth of the organization.

What are a few of the key tools or resources you use to monitor the overall health of your Insourcing?

We have an in-house framework which is identifies and monitors the
overall health of the insourcing model by using and monitoring the KPIs
which are associated with insourcing. These are the parameters which drill down to define the level of quality vs the complexity indexes.

How has Insourcing evolved in the last 5 years?

Over the last few years, insourcing has evolved and grown
immensely, while providing support to the industry. The insourcing
industry has evolved to provide enterprise business level support. A
number of great case studies have emerged wherein organizations have
moved to the insourcing model. Even SMBs have started to take charge and work upon the bandwagon of insourcing.

What is the Insourcing Multiplier support that is essential for success?

Insourcing multiplier is without doubt a wonderful concept and means
to provide the knowledge base and critical resources which can be used
by the industry and the organization to adopt better insourcing models. This knowledge base and information resources are critical for the success of any insourcing transition, and definitively, the insourcing multiplier support will do a tremendous job of making this possible.

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