E-SCM AND SCRUM METHODOLOGY

e-Sourcing Capability Model and SCRUM Methodology



Abstract

The focal point of this article is the eSourcing Capability Model for Service Providers (eSCM SP), which is a set of essential and desirable practices for outsourcing providers that addresses the complete process lifecycle and encourages providers to innovate. Companies seeking a best-of-breed outsourcing partner can now use the eSourcing Capability Model to establish common performance measures and expectations for external providers, ensuring a higher probability of long-term success.

e-Sourcing Capability Model and SCRUM Methodology

Introduction

The continued growth in outsourcing can be attributed to the increasing reliance of executives on external service providers to help them lower costs, increase flexibility and respond quickly to market pressures. However, for executives to reap the true value of an outsourcing arrangement they need two capabilities: a way to predict the effectiveness of potential service providers, and a way to determine their own company's capacity to manage an outsourcing relationship. eSourcing Capability Model for Service Providers (eSCM-SP): Outsourcing providers can use this model to appraise and improve their ability to provide high quality services. Prospective clients can use it to evaluate service providers (Weidenbaum, 2005).

eSourcing Capability Model

eSourcing Capability Model for Client Organizations (eSCM-CL): Client organizations can use this model to select and manage outsourcing providers (Stringfellow, 2007). While either model can be used for improvement or evaluation purposes without formal certification, Carnegie Mellon University provides certification for both models. Accenture Finance BPO Services in Bangalore, India, was the first business process outsourcing organization in the world to achieve eSCM-SP certification. Accenture's experience with the eSCM-SP model has been very positive, and it integrates well with quality initiatives based on other models (Sako, 2006).

eSourcing

IT-enabled sourcing, or eSourcing, uses information technology as a key component of service delivery, or as an enabler for delivering services. Often provided remotely eSourcing services range from routine and non-critical tasks that are resource intensive and operational in nature to strategic processes that directly impact revenues (McFarlan, 2005).

Critical issues for eSourcing

While developing the eSCM-SP, 23 issues were identified as being critical for successful eSourcing. These critical issues have been classified into six themes:

Good relationships between the service provider and the client, the end users, suppliers, and all stakeholders.

Selecting, hiring, and retaining a motivated workforce.

Well defined and delivered services that satisfy commitments and meet client needs.

Managing common business threats, such as security issues, risk management, disaster recovery, and statutory and regulatory requirements.

Providing world-class services that are always improving.

Managing service transitions well at both engagement initiation and completion (Mankiw, 2006).

Model Structure

The current version, eSCM-SP v2, is composed of 84 Practices that address the critical capabilities needed by IT-enabled service providers. Each Practice is distributed along three dimensions, 1) Sourcing Life-cycle, 2) Capability Area, and 3) Capability Level (Linder, 2004).

Sourcing Life-Cycle

Although most quality models focus only on delivery capabilities, in eSourcing there are also critical issues associated with initiation and completion of an engagement, as well as the overall capabilities of the service provider. For this reason the first dimension of the eSCM-SP Practices highlights where in ...