

set the right objective
It may sound obvious that the number one requirement
for bundling one's telecom sourcing into a large project is the strict amount of savings that can be achieved from it. Yet,
most of the outsourcing contracts which are being renegotiated before the end of contract deadline are not failing because
of unrealized savings, but for other reasons. Thus one has to set the right level of expectations for this kind of large and
complex projects, including qualitative criteria such as the sustainability of the provider, the quality of the relationship,
and the provider's ability to evolve the current offering on behalf of your organization.
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allocate sufficient resources to the assessment of the project
It
is absolutely necessary that the candidates for a complex project or a new outsourcing project devote enough resources, time
and funding for the definition of the project itself. As it happens, large projects often involve complex cross-organizational
relationships, not only at provider end, but also and mostly at client end. As a matter of fact, in this kind of projects,
the service provider is not just merely responding to telecom provision requests and needs. Its role has to extend way beyond
that of a sole provider, as the project itself is very much related to change management. As a consequence, the project has
to be very well positioned across the board from the client end, in order to ensure that all the geographies involved are
identified, well defined and that all the stakeholders in all the various countries are prepared for this important change.
Failing to allocate the right level of resources at the beginning of a large project would jeopardize its future success and
catching up with resource allocation at a later stage would prove both costly and less effective in the long run.
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rigourously assess the baseline of your telecom spend
One of the most
common issues encountered in large telecom projects is related to the limited understanding a company may have regarding its
current telecoms spend. As a result, initial cost baselines are often underestimated and lead to the wrong sizing of an outsourcing
deal (experience shows that most clients underestimate their spend rather than over-estimate it). ICT specialists can actually
support you in doing this. There are two main ways of appraising one's current telecoms baseline: either by resorting to an
external consultancy which will carry out the audit of your current spend or by working closely with your preferred provider.
This will help you to evaluate real costs and derive plausible estimates of the types and amounts of savings that can be achieved
through the wrapping up of your telecom provision into a large project. Such a preliminary engagement (often called a joint
opportunity assessment) is also the right forum for eliciting the project objective and key success factors. The more these
objectives are set up in common with the provider, the fewer chances one has of running into problems further down the road.
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set the right expectations
Excessive optimism in large projects often
leads to the overlooking of potential future issues: large projects or outsourcing are in essence difficult and complex. They
require a lot of focus not only from the provider but also from the client. It is customary in this kind of complex projects
to advocate management by Murphy's Law. Large and complex projects indeed imply that one foresees 'everything that could go
wrong because it probably will'. Predictive project management is a must in this area and requires special skills which are
mastered by our Large Projects experts. As a consequence, large projects management implies very thorough and predictive project
planning as opposed to excessive optimism.
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allocate resources with appropriate know-how in your project team
It
is absolutely necessary that the client project team comprises a significant number of experts who will be able to interface
positively with the service provider. As a matter of fact, it does not just benefit the client itself but the entire relationship,
and would make the large project or outsourcing project a lot easier and faster to implement. It is also necessary that the
client team does not only consist of technical people, but it should also encompass sourcing, legal and managerial experts.
This multifaceted team is what is going to make the large or outsourcing project succeed. As it happens, a lot of candidates
for a new large project or outsourcing project choose to resort to external consultants specialized in outsourcing to support
them with the preparation of the future project.
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properly assess the human factors surrounding the change management aspect of a large
project
Should there be asset transfer from the client to the future provider, human aspects of the project
are really paramount. Overlooking these human issues or taking them into account too far down into the project life would
most probably lead to its cancellation or postponement. But the human factor in a large project is well and truly important
even when there is no asset transfer plans involved. In essence, such a project implies that there are a number of different
teams (both within the client's and also the supplier's organization) who have different objectives who will have to work
together. As a result, as always in project management, one has to take the human factor into account, over and above any
technical issue that may arise. At the end of the day, the project is about people working together, and has very little to
do with technicality.
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incremental roll-out or big-bang?
Many large project failures are
due to the bad appraisal of the method of implementation that should be adopted once the project is signed. The "Big-bang
implementation methodology" is a possibility and sometimes it is desirable. But this kind of methodology also requires careful
planning and integration of the human factor at the highest level (refer to rule number six for details). Otherwise the project
will likely result in a failure for the client and service provider.
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be open to adapt business process
Naturally, most large project implementations
require the service provider to adapt to a number of business processes and guidelines dictated by the customer. However,
it is highly recommended that clients also pay attention to the best practices described by the service provider. It is common
that a large project implies that the client revises some of its processes and redefines the role of its retained organisation.
The implementation of an outsourcing relationship is often an opportunity for the client to adapt its business processes,
redefining roles and responsibilities, and generate additional efficiencies by doing so.
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timely take a go/no-go decision
All experts in this field have witnessed
examples where the client has not clearly validated the business case for a new large project before launching a request for
proposal. In some cases, the client may then decide to work closely with service providers or specialized consultancies to
further evaluate the feasibility of the potential large project or outsourcing project. This is typically the case when a
joint opportunity assessment is launched, resulting in a clear go or a no-go decision. If this assessment is not done, issues
may become visible during the contract negotiation phase, possibly leading to a cancellation of the project, meaning that
all the resources engaged on both the client and provider sides have been mobilized for nothing. We therefore strongly recommend
an in-depth assessment in order to determine the feasibility of a large or outsourcing project, either with a preferred service
provider or with the help of an external, specialized consultancy.
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have a clear vision for the longer term
As explained in rule number
one, a lot of large projects fail due to a lack of vision regarding the amount of innovation which can be instilled at the
heart of the project. Too much focus on short-term savings will lead the client to achieve its immediate financial results
but failing on its longer term ability to capture all the potential from new and innovative services offered by its service
provider. In this case, there is a risk - which we have often witnessed in the field - that the client realizes after two
or three years that some major technological advances have been made in the field of communications services (namely that
of mobility services for instance) but neither its operations nor sales forces have been able to benefit from them. It is
not rare that this kind of failure to achieve straightforward business benefits from new technologies is leading to the renegotiation
of the project or contract. This is actually the reason why Orange Business Services has created a joint innovation program
especially designed for large and complex projects.
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here are some books about outsourcing and complex projects management:
would you like to participate in our link exchange program.
The following glossary is aimed at explaining some of the fundamental terms used in outsourcing and large projects management.
We have augmented it with specialized terminology used by Orange Business Services teams when dealing with our clients. This
glossary of terms can be complemented by the glossary of outsourcing at sourcingmag.com

Orange Business Live was an event held in Berlin in June 2008 that triggered some interesting and passionate discussions about
how ICT can help enterprises meet their business challenges.
This blog continues that dialogue.