Changing the Game of Outsourcing - the Microsoft OneFinance Case Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

This case concerns the effort to fully restructure operations through what the authors call a Vested Outsourcing understanding and its major global finance procedures of Microsoft. This was extended 2 years after, to 2018, with a total contract value of $330 million, and increased scope. Called the OneFinance initiative, the effort outsourced nearly all back office finance transactions spread across 95 countries to service provider Accenture under a new kind of outsourcing model. Under the agreement the parties operate underneath incentives to improve performance and deliver increased value year-over-year, while sharing in the risks and rewards of doing so.

The case concentrates on the rationale for this distinctive way of outsourcing and transformational change, and provides details of the definitions of work, governance structures and measurements, and pricing models embraced. The fine-grained accounts of the OneFinance outsourcing arrangements provides an opportunity to identify the distinctive principles and practices adopted by the parties. Readers can compare and contrast other outsourcing deals and the cases and assess the challenges in picking the approach as well as the supplier. The case also asks an evaluation of the hazards being incurred, the built-in implementation and operational challenges as well as how they might be met. The case also raises questions about what amounts of success may be reached, and what states would have to be present for success. Ultimately, the case raises the problem of whether, and if so how, this distinctive 'vested' approach might be adopted elsewhere.

PUBLICATION DATE: June 01, 2012 PRODUCT #: JIT039-HCB-ENG

This is just an excerpt. This case is about TECHNOLOGY & OPERATIONS