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Best Practices in Outsourcing: Insights from BBC Case Study

This case study explores best practices in outsourcing within the UK public sector, highlighting the BBC's experience and insights. With £100bn in outsourced projects expected by 2015, it emphasizes the critical factors for success amidst high failure rates in similar projects. Key strategies include clearly articulating requirements, incentivizing outcomes, and retaining expert knowledge. The study details governance structures, the importance of flexibility, and maintaining a Plan B. Notable achievements include £220m cost savings, enhanced reputation, and long-term partnerships.

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Best Practices in Outsourcing: Insights from BBC Case Study

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  1. BBC Case studyBest Practice James Milner 04/07/2013 V1.0

  2. BBC Case study • Outsourcing UK Public Sector • BBC • Common concerns • The golden nuggets

  3. Public Sector outsourcing contracts are set to reach £100bn* by 2015 *Analysts – Cantor Fitzgerald 2013 £100bn £20bn £10bn

  4. “Nearly 50% of outsourced projects fail outright, or fail to meet expectations” Aberdeen Group

  5. 25million households £3.8bn revenues £150m collections costs 12m phone calls 2nd largest prosecutor in UK 47 different ways to pay 2000 employees

  6. Outsource or in-house? How do we contract for an unknown future? What skills will the team need? How do we negotiate with FTSE 100 companies? Will bidders understand our issues? How do I convince my boss? Public Sector outcomes vs Private Sector goals

  7. Get Fit Clearly articulate requirements Meet the market

  8. Incentivise outcomes Unambiguous and Measurable

  9. Risk is best managed by party with most influence • Reward • appropriate

  10. Build sustainable governance and structures Retain experts in-house

  11. Flexible and future proof Retain a Plan B at all times

  12. Ensure service is fit for outsourcing Invest time articulating requirements Incentivise to achieve business outcomes Risk is best managed by the party with the most influence Rewards are appropriate and aligned with objectives Outcomes are clear, unambiguous and measurable Retain expert knowledge Ensure contract is flexible and future proofed Build sustainable governance and structures Maintain a plan B at all times

  13. £220m cost saving On target for £120m extra revenue Complaints reduced Reputation enhanced Long term partnership secured Recognised by CEO of supplier as the future of BPO deals

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