Prakash Kumar – Head – IT – BMW GROUP INDIA

Industry

Automotive

Current project

Digitisation

Most proud achievement

Green Field Shared Services Centre serving to Multiple Countries.

Dream project

Creating an IT Service Company.

Team size

200+

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

More than a need of designated Chief Insourcing Office, there is a
need for a culture where every decision is made irrespective of
functions and is taken in a manner that the insourcing option is always
leveraged and can be integrated in the system.

What according to you defines Insourcing in your industry?

Insourcing according to me utilizes the inherent internal capacities
and exploiting the capabilities within before we look at the outsourcing
option. Moreover, insourcing can expand the current internal operations
and further use it, so that the organization’s future and current
requirements can be easily met.

Why is it gaining momentum in your industry?

One of the key reasons why any organization is today looking at
insourcing owes to the cost and time factors which are now becoming
pressures in the outsourcing option. We are in an era where faster
delivery and quicker turnaround is absolutely essential due the pace at
which we are experiencing change in the external environments. Earlier
it was easier to rely on the partners to carry out the jobs because time
constraints were not very tight and stringent. Today’s requirement,
however, is quick delivery and turnaround which can be made sure only if
the skills reside close by and can work dynamically in a controlled
environment under the same roof for all departments.

What services lend themselves best to outsourcing in your industry?

The services which require in-depth and advanced skills are the most
important and should be kept insourced. Moreover, the services which
involve intellectual property right serves should be insourced in order
to make sure that the organization does not experience any loss or theft
of data or information resources. Also, business which is repetitive in
nature sometimes is a good case for outsourcing however cost is a
consideration and should be taken care of.

How difficult or easy was Insourcing transition for you?

It’s a tough proposition anytime because it means bringing the risk
inside and taking ownership. But all good things come at a cost, so, in
the light of the benefits and improvements that insourcing can provide,
the insourcing transition smoothens out and becomes easy towards the end
culminating into a perennial solution.

What are the key considerations for successful Insourcing?

Key Component for a successful insourcing solution include the
internal buy in of the senior management, organization’s readiness to
handle risks themselves and last but not the least, availability of
skills in the in-house teams who can drive the change. All these key
factors can drive the insourced operations to the level it deserves and
its potential to achieve.

Who are the key support partners for successful Insourcing?

The key support partners for the successful insourcing transitions
and operations must come from the C-suite professionals such as CEO,
COO, CHRO, CIO, and CRO. These are the ones with the vision to ensure
that the organization is on the right track of growth and success.

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

A CIO plays the most important role. He is the one who drives the
change and has to create an eco-system which is symbiotic and ever
evolving and has the inherent culture of insourcing in it. The rest of
the organization will only understand and benefit from this culture if
the CIO is able to develop a solid business case based on the growth and
developments promised through insourcing. Also the cost cutting and
time based cost reduction and improvement that can be made possible
through insourcing.

What is the key consideration are budgeting Insourcing transition costs?

Insourcing in the initial stages is expensive because of the entire
internal setup which is required to be installed in place. So the
transition cost is important. The chances of failure are always
associated with this cost and thus costs act to be a very important key
consideration in budgeting transitioning cost. Hence, these costs are
more of innovation costs than normal budgeted costs. The insourcing
solutions can thus sometimes lead to acquisitions which can even lead to
greater investment.

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

The In house IT-team needs to be built like an IT innovative
organization and not as a support function. This ensures that the
IT-team is a profit centre. The primary aim is to create an organization
within the organization which helps in the growth of innovation which
leads to acquiring and building of newer and better skills. Incubation
centre’s such as R&D centre’s which work on creating new areas of
development are required to be put in place to ensure the future
requirements and innovations of the organizations.

How has Insourcing evolved in the last 5 years?

With the increasing cost of IT outsourcing and multiplicity of
technology being used, the IT costs for outsourcing are becoming heavier
day by day for the organizations. This has led to the beginning and
initiation of insourcing. In the recent times the organizations need
models that are digitally oriented and provide very fast turnaround in
order to ensure that organizations remain ahead on the curve of
innovation. This has been able to provide drastic changes in the
dimension and thereby more and more insourcing is now being looked at
and endorsed by the organization.

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

Organization need to develop the ability to take risk, accept
failures and invest freely in the beginning. In order to make sure that
the organizations are able to develop such models and ideas which have
minimal risks, minimal failures and understanding and assessment of the
future of the organization, the Insourcing Multiplier provides immense
support through its knowledge and information resources.

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