Impact Of ICT Integration And Outsourcing On Accenture Operations

Advantages of ICT integration and outsourcing for Accenture

Question:

Your Case Study organization’s CEO says they would like to “outsource their ICT” and asks to you to “make it happen”; this includes any existing systems as well as new systems. You will use the information gathered in the previous assignments and will need to do your own research on outsourcing. 
 

This particular integration is evident in various center of Accenture at varied destinations of the company. The identification of the resources needs to be identified before inputting them into the ERP system. The scope of expansion is considered on the basis of requirements of the present outsourcing operations. The ERP system not only monitors the daily changes in the in the several departments within the company but it also makes the outsourcing of the ICT simple to operate (Ewerstein and Jansson 2014).

The process of outsourcing, deals with transfer of business services from an external source, this is done in order to improve the existing service and expansion of the business processes. Outsourcing is often done in order to incorporate new innovation, knowledge and reduction in the cost associated with management. The conceptualization of the technology emerging in the newer enterprises is significant in both production and service related organizations. The sourcing is done by an external supplier and it is not carried out internally by the management of the company. The initiation of the ICT process was evident from countries like India, China, Cyrus, Malta and UK. It has been observed that there is a considerable amount of cross bordering in the aforementioned regions. (Sebesta 2013).

The implementation of the ICT process has been studied through Accenture PLC, headquartered in Dublin, Ireland. The company is known for consecutive achievement in the outsourcing operations in the 2016 Global outsourcing list published by the “International Association of the outsourcing Professionals” (IAOP). The list shows the top hundred companies globally for their outsourcing operations (Newsroom.accenture.com. 2016).

The implementation of ICT at Accenture has ensured that the company can optimize the efficiency in e-healthcare services by providing the solutions related to global warming and various types of social issues which are directly affecting the economic prosperity of a nation. It has enabled the company to achieve several objectives related to innovations and ensured several types of cost effective techniques in the business process. The report given by “SMARTer 2030”, have suggested that smart grids, outsourcing of the ICT devices, network sensors have significantly contributed to these sectors of the company. The ICT technology has shown the potential to reduce the carbon emissions by 20 percent in the e-healthcare services. (Newsroom.accenture.com. 2016). 

The main service of the company is related to provide business, operations and strategies related to operations. The company aims to improve the consulting services by outsourcing of the ICT technology. It is responsible for outsourcing of digital marketing, mobility services and analytics services. The main objective of the outsourcing activity of the company is to reduce the carbon emissions and add to the environmental performance in the various types of services in the related industry (Jack and Igwe 2014).

Disadvantages of ICT integration and outsourcing for Accenture

The main advantages of implementing of ICT in Accenture are discussed below as follows:

• The outsourcing of the ICT processes in the company has assured the company to achieve the reduction in the CO2 emissions by 2030.
• The technology has the potential to reduce global emission footprint to decrease the global emissions by 1.97%.
• The impact of the implementation has laid an augmented focus on the eight sectors of the global economy particularly in energy, food, health, logistics, building and learning of newer methodologies for the outsourcing operations.
• The SMART2030 report has shown a substantial contribution of ICT in the global emissions between ten years of time span in a conference held at Paris.
• The carbon footprint report based on the usage of resources by electricity, office facilities has been brought down by more than 47 percent. This reduction is equivalent to availing of electricity facilities by more than 350000 consumers of electricity at North America. (Accenture.com. 2016) 

The cons of implementation of implementation of ICT technology has been discussed below as follows:

• The implementation process has faced several challenges due to the changing market scenario at global level. Due to this it is becoming a challenge for the companies like Accenture to trace the external suppliers who are related to provide ICT service.
• The adoption of various types of ICT service and adoption of techniques such as network sensors, smart grids and mobile networks is considered as an expensive measure and the up gradation process can be time taking process.
• The restrictions in the usage of internet in certain countries have led to the limited usage of ICT. Due to the Government policies in various countries the internet has limited accessibility and this is a major drawback in implementation of the ICT process (Talebian et al. 2014).
• With the emerging threats from the potential hackers and fire wall breakers the Internet technology is on the verge of being exposed to greater data piracy and theft.
• In order to ensure continuous flow of data it is essential to have a proper interlinking of the service through internet (Lapão 2015).

The offshore multi sourcing is often referred to as hub and spoke model. This method of off shoring reduces the power which a single monopoly supplier should have. This will also enhance the company in achieving the best strategy. This particular model will ensure the company in taking a more risk aversive strategy and mitigate the various uncertainties involved in the outsourcing process. This will also give the company an opportunity to manage the resourcing on internal basis. The appropriate time for multi sourcing is dependent on the maturity of a particular organization. This will enable Accenture to get acquainted to the newer processes and also provide an opportunity to renegotiate with contracts at a later date. As the outsourcing of the business process is very large at Accenture this particular model is ideal for such an organization.  This is ideal for flexible business needs and suiting according to job needs of the company. The complexity involved in the process calls for superior management of the available talent to oversee relationship with many vendors and efficient execution of the same.

 

Figure 1: Business Network Model for hub and spoke

(Source: Liu et al.2012)

The main objective of the hub and spoke model is to increase the present operations of the company. The typical development is associated to the core company. This process may be achieved through strategic exploitation of the assets. In order to efficiently implement this model the strategic alliances needs to be integrated with different competencies. The technological combinations need to be properly merged with outsourced destination for the proper achievement of the business opportunities (Lee et al. 2014).

Accenture PLC can adopt the outsourcing model as per build operate and transfer model. In this model the private entities of the company can look to hire the outsourcing facility from the third party agencies. The principle behind the model is offshore partner and engaging in outsourcing operations was based on the in-house effort. The build operate and transfer model is based on the above discussed three principles:

• Build: This particular sector deals with the identification of the client requirements and making an effort to make an establishment in the host country. This particular phase is involved with tracking of the legal issues, permits, providing administrative services, supplies to office.
• Operational: The operational phase deals the contribution of the offshore suppliers in the outsourcing of the ICT services. This will ensure that the clients will be able to provide an augmented effort in the time for management and contribute more time for the business rather than giving time for solving of the operational issues existing in the organization (Khanzadi et al. 2012).
• Transfer: The transfer phase gives an option to the outsourcing activities which deals with the acquisition of the entire business after the operations of the organization have been established for a certain period of time.

Figure 2: Build Operate Transfer Model

(Source: Nextgentechinc.com. 2016)

The model is also ideal in providing advanced customer service at a lower cost, ownership and risk. For the purpose of averting the risk associated with the venture, the company can look forward to invest in the main functional areas of the business (Jadhav and Attar 2014).

The scope of has been seen with the integration of the core functional areas with the business enterprise resources planning. The ERP system used at Accenture is SAP solutions. The outsourcing activities related to purchasing operation, sales, distribution and financial factors related with the service are linked online with ERP system. The ERP takes into account the relative changes in the purchasing activities of the organization and the changes in the various processes within the organization are updated real time with the help of ERP system. The most effective development from the integration of the core functional activities of the company for the various types of facilities which are outsourced is directly in line with opportunities for the improvement in the varied solution of the company. The major integration has been seen mainly in the areas related to finance and purchase operation which are related to the purchase of the ICT equipments (Chan 2013).

ERP system and the use of SAP solutions

In order to purchase various equipment and hardware for the purpose of development of Internet communications and technology, the subcontractors need to be managed efficiently in the following ways:

• The standard template for RFI should be used by the associated subcontractors and the consultants need to place their requests and minimize the import to a single problem.
• It needs to be ensured that the RFI’s are delivered according to the time specified in the contract.
• The consultants working in the team of Accenture should attach their copy of RFI, which clearly states about the specifications, videos or models which can assess the solution of the problems that are arising as a result of conflict in the request for information (Wright et al. 2016).
• The project wide register is used to keep track of the RFI with the help of an identification number, date of response and date of creation of the entry.
• The next steps in the process of request for information involves delivery of the receipt to the appropriate team members as specified in the contract and ensure that an entry has been created for record in the project wide register.
• The response return process of the review should be dependent on the accuracy and appropriateness thereby ensuring the impact of same on financial project budget and project schedule.
• The updating of the RFI status is a critical step and it should be only performed after consulting with the team and notifying them about the changes that are being made in the request for information. (Higgins et al. 2012).
• When the requirements are met the register needs to be marked as “closed out”, in situation where the requirements are not made according to the specifications it needs to be marked as outside concern for the resolution purpose of the historical reporting (DATE 2012). 

Some of the important key performance indicators and service level agreements which are expected from an outsourcing company like Accenture PLC are mentioned below as follows:

Key performance indicators

• The main concern for the outsourcing agency should ensure utmost maintenance of the quality aspect.
• It has to be ensured that testing cost is lower than the total project cost.
• The company to carefully assess the difference in the progress involved of the planned activities and the actual outcomes.
• The regression test should be based on quantitative execution and cases should be updated according to the release project (Flipse et al. 2013).

Service level agreements

• The company needs to make sure that the services related to purchasing and implementation of the ICT technology in outsourcing is within the specified budget.
• The efficiency of the design should be tested by the designated team
• Regression test should be performed on the basis of automated libraries
• The company needs to make sure that the parameter selected for SLAs are accurate (Gorla and Somers 2014). 

The improvement process at Accenture should focus on the benefits it can gain by contributing to the society. The company needs to make tie-ups several companies which can provide efficient technological solutions for improving the overall communication process. The several outsourcing operations will lead to sourcing of more manpower at cheaper cost. This can be achieved by operating in countries where the labor cost is significantly low. In order to enhance the updating process of information the company may consider the restructuring of the ERP system and customizing it according to the requirements of the company. The facilitation of outsourcing services in various areas where the economy is low can lead to a significant growth in the economy and improve the gross domestic product of the nation.

The advertising process of RFI should be designed in such a manner that it is able to get attention of vendors for the purpose of outsourcing services and limiting of the selection window for best suppliers available for outsourcing services. The question and method of RFI should involve the participation of individuals related to various professions. For example the process of RFI needs to be advertised in a different way to the trainees of the company than to the experienced employees of the organization (Montenegro and Flores 2015). 

Reference No.	Date of entry	Activity Name	Description	Planned Action	Status
01	18 .06.2016	Outsourcing model	Preparation of multisource hub and spoke model and build operate transfer model	Selection of multisource hub and spoke model	Under process
02	20.06.2016	RFI model of process flow	Model showing the placement of orders on the basis of responses by clients	Selection of request for information process model	Closed
03	22.06.2016	Evaluation of methodology	Listing of key performance indicators	Selection of suitable KPI	Closed
04	23.06.2016	Evaluation of methodology	Listing of service level agreements	Selection of suitable SLA	Open
05	24.06.2016	Criteria for sourcing	Selection of vendor	Selection based on multiple sourcing	Open
06	25.06.2016	Selection of ERP	SAP solutions	Selection for improving the online integration of the outsourcing activities.	Closed

Conclusion

The extensive analysis of the report shows that the company needs to upgrade itself according to the changing requirements of the market. It should also ensure that the outsourcing process is able to increase the flow of information in a cost-effective way. In order to further improve the viability of ICT the company needs to take into consideration the expansion of this process in various sectors related to service industry. The key points mentioned under request for information clearly states that advertising and identification for selecting supply and capability of individual suppliers engaged in nicety operations. The general register is used to demonstrate the action plan prepared by the company on a specific date. It shows the scheduled for status of the formulated action plans.  

Reference List

Accenture.com. (2016). Environmental Strategy – Corporate Citizenship – Accenture. 

Chan, E., 2013. Australian quantity surveyors utilize ICT and ERP system improving efficiency. Engineering management reviews, 2(4), pp.103-114.

DATE, S., 2012. Request for Information. Work, 501, p.65076.

Flipse, S.M., Van Der Sanden, M.C., Van Der Velden, T., Fortuin, F.T., Omta, S.O. and Osseweijer, P., 2013. Identifying key performance indicators in food technology contract R&D. Journal of Engineering and Technology Management, 30(1), pp.72-94.

Gorla, N. and Somers, T.M., 2014. The impact of IT outsourcing on information systems success. Information & Management, 51(3), pp.320-335.

Higgins Jr, D., Fryer, S., Stratton, R., Simpson, D. and Reginato, J., 2012. Using the forward thinking index to reduce delays related to request for information process. In Proc., 20th Conf. of the Int. Group for Lean Construction (IGLC 20), Lean Construction Institute, Arlington, VA (pp. 1-10).

Jack, I. and Igwe, L.E.B., 2014. Extent of achievement of the objectives of ICT application in the accreditation of university programmes. Journal of Technology and Education in Nigeria, 17(1), pp.53-58.

Jadhav, V.S. and Attar, A.R.C., 2014. Economical Evaluation of Build-Operate-Transfer Project, A Case Study.

Jensen, P.D.Ø. and Petersen, B., 2013. Build-operate-transfer Outsourcing Contracts in Services–Boon or Bane to Emerging Market Vendor Firms?. Journal of International Management, 19(3), pp.220-231.

Khanzadi, M., Nasirzadeh, F. and Alipour, M., 2012. Integrating system dynamics and fuzzy logic modeling to determine concession period in BOT projects. Automation in construction, 22, pp.368-376.

Lapão, L.V., 2015. The challenge of benchmarking health systems: is ICT innovation capacity more systemic than organizational dependent?. Israel journal of health policy research, 4(1), p.1.

Lee, S.Y., Yoo, K.E. and Park, Y., 2014. A continuous connectivity model for evaluation of hub-and-spoke operations. Transportmetrica A: Transport Science, 10(10), pp.894-916.

Liu, S., Kasturiratne, D. and Moizer, J., 2012. A hub-and-spoke model for multi-dimensional integration of green marketing and sustainable supply chain management. Industrial Marketing Management, 41(4), pp.581-588.

Montenegro, C.W. and Flores, D.A., 2015, December. An integrated model for ICT Governance and Management applied to the Council for Evaluation, Accreditation and Quality Assurance of Higher Education Institutions in Ecuador (CEAACES). In Computing, Communication and Security (ICCCS), 2015 International Conference on (pp. 1-9). IEEE.