Pratap Gharge – Adjunct CIO Advisor – IDC – India

Industry

Technology Research

Current project

CIO Advisory Services on behalf of IDC (Recently retired from Bajaj
Electricals Ltd. Consumer durable and Lighting Projects Company, after
working for 33 years at various positions. Last designation Executive
President & CIO. Hence most of the following questions are answered
with respect to Bajaj Electricals Ltd tenure)

Most proud achievement

Developed “One Tick Supply chain” Concept across all legs of Supply
chain for making sure maximising availability across all places with
optimum inventory in the entire system.

Dream project

Recent Project for Digital Transformation with Consumer centric focus
was successfully implemented, where we had defined Digital Vision,
Strategy, Roadmap, Initiatives, Business case, Prioritisation and
Implementation of most of the initiatives was completed in 2 years.

Team size

1 Chief Digital Officer + 5 Internal resources + 15 outsourced resources + 25 Digital Spocs from all business functions.

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

Having separate and designated positions help in bringing in more
focus to the project or the task at hand. Till now in organization other
C-suite professionals such as the CIO or CFO have been driving such
insourcing projects in order to achieve excellence, reduction of costs,
streamlining of operations and more. This can be made even better if a
dedicated managerial professional is made responsible for all the
insourcing projects to derive even better results and revenue
generation.

What according to you defines Insourcing in your industry?

In essence building In-house capabilities for various Core and
non-core business functions is in my opinion is called Insourcing. It is
this burgeoning change in the industry in which the organizations bring
in more and outsourced operations back in-house to have better control
and process modification along with data security.

Why is it gaining momentum in your industry?

As a trend we are noticing that the outsourced agencies are becoming
costlier with every passing day and moreover, they are not able to
deliver cost-effective and quality services, which used to be the forte
of outsourcing agencies. Insourcing has thus been gaining momentum. The
in-efficiency of outsourcing is now being replaced by the long term
benefits of insourcing.

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

Pre-outsourcing was a period wherein almost everyone was focused on
first building core-competency and hence wanted to outsource non-core
processes. Soon enough although, companies have started realising that
these outsourced companies are becoming costlier options as they do not
provide much long term benefits. Moreover, earlier outsourced non-core
processes have started becoming extremely important and critical for the
businesses to stay competitive in the market. Thus, even the non-core
processes today are being looked in the light of insourcing.

What services lend themselves best to outsourcing in your industry?

In my opinion, Finance Accounts Payable, HR Recruitment, Customer
Service delivery and IT Network monitoring Centre have been the few
non-core domains in our industry which have been given to the area of
business process outsourcing to allow more focus on core-competencies.

How difficult or easy was Insourcing transition for you?

When done right, building internal competencies for few processes at a
time is not at all difficult. However, if we try to do and incorporate a
number of skilling processes simultaneously then we may face a bit of
difficulty which is however not at all impossible to handle.

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

In our organization, we have out IT Support services outsourced.
However, we ensure that all software development services are insourced
at all levels to have control over our operations and software
development.

What are the key considerations for successful Insourcing?

It is very important that organization is able to manage the services
that they are providing in professional manner with complete
measurement metrics to measure the effectiveness of the delivery. The
management of these services along with complete focus on the health
measurement and assessment of the processes are the key considerations
for successful insourcing.

Who are the key support partners for successful Insourcing?

Current insourcing partners which can make insourcing a success
include knowledge sharing partners for internal teams along with the top
management. The needs of insourcing must be supported by the business
function heads for building in-house resources and ensure long term
success and revenue growth for the organization.

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

Business cases for the insourcing can be established by pointing out
and establishing the business benefits which can be made possible due to
such insourcing solutions. These benefits include implementations in
the form of business process efficiency, compliance improvements, risk
reductions, and further quantification of all of these business
benefits. We need to look at all these processes against costs and
investments which are required for building pool of resources to deliver
the insourced process delivery and the benefits involved.

What is the key consideration are budgeting Insourcing transition costs?

The Key considerations for budgeting Insourcing transition costs
essentially include all the additional financial resources which are
required during the transition process from outsourced to insourced
ways. These costs and additional resources are included in terms of
people, tools, software acquisitions, data migration costs etc.

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

Above all, the In-house IT needs to build such capabilities in terms
of resources which are needed for future growth. Moreover, it needs to
build a business continuity plan which can take care of various
eventualities, such as events of resignations or any unforeseen
incidents. This will make sure that the In-house IT provides the
insourced business process in an on-going continuous basis without any
breakage in services. Lastly, there have to be metrics in place which
can indicate the health and effectiveness of the insourced process
delivery. Measurement, and presentation to all the stake holders in
project governance meetings needs to be done regularly done by IT team
and that to in-house in order to establish the transparency and trust.

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

We make use of managed engine ticketing tools in order to measure the
effectiveness and health of the Insourced services of IT to our end
users. We also make use of a number of APM tools which can measure the
delivery of end user experience and make it even more effective in an
iterative process.

How has Insourcing evolved in the last 5 years?

Insourcing has been gaining immense momentum in the past few years.
With the Companies realising the increasing importance of the same, it
has become important and necessary practice today to invest in
insourcing solutions and resources.

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

Support required for success of insourcing is support from stake
holders and hence as a change management, their buy in creation is must
before we start on this journey. The insourcing multiplier may support
these stake holders in making them understand and realize how the
insourced solutions can benefit in the long run and improve upon the
organizations growth and its development.

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