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Getting to Win-Win: Success Factors in the HP/TD Bank Outsourcing Arrangement

Product Type: Market Research Report
Published by: IDC
Published: January 2005
Product Code: R104-23588
Description

This IDC study explores the features of a recent seven-year outsourcing arrangement between HP Canada and TD Bank for the upgrade and management of the bank's automated banking machine (ABM) network and point-of-sale (POS) transaction infrastructure. It discusses the business, technical, and relationship features of the arrangement that make it beneficial for both parties and highlights key characteristics that are transferable to other outsourcing situations.

IDC believes that the key to a good outsourcing provider/customer relationship is a common focus by all parties on the customer's customer. That is the heart of the outsourcing customer's business, and it is the wellspring of future growth opportunities for services providers. Successful outsourcing arrangements on this basis can drive greater value from IT resources and more business benefit for both customers and services providers.

"At a time when every bit of value from every aspect of business counts for meeting business goals, organizations will need to put considerable effort into making services provider/customer relationships as productive as possible to derive the most IT-based value from outsourcing arrangements." ? Margaret Tanaszi, global manager, IT Value Metrics and Measurement

Table of Contents
Table of Contents
IDC Opinion
In This Study
Executive Summary
Provider/Partner Integration
Customer IT/Business Integration
Collaborative Provider/Customer Solution Development
Customer-Centered Governance
Customer Focus and Joint Customer Stewardship
Situation Overview
Outsourcing in Financial Services
Figure: Canada Financial Services Firms Outsourcing and Operations-Related Services Spending, 2004?2008
The HP/TD Bank Arrangement
About TD Bank
TD Bank's Challenges
About HP
HP's Response to the Request for Proposal
Features of the Outsourcing Arrangement
Secure Switching and Network Upgrade
Strengthened Security
End-to-End Solution Including Business Issues
The Right Partners
Provider's Integration with Partners
Focus on Customer
Collaborative Solution Development
Client-Centered Engagement Governance
Relationship Management
Simplicity ? Inclusive Payment Schedule
Adaptability ? Evergreen Technology Commitment
Flexibility ? Exit Strategy and Transition Support
Joint Customer Stewardship
The Win-Wins
TD Bank Benefits
Service Delivery Incentive
Service Continuity
Cost Savings
Positioning for the Future
HP Benefits
Potential to Leverage ABM Outsourcing Model
Partnership Leverage
Continual Improvement Opportunities
Boost for Adaptive Enterprise Approach
Future Outlook
The Power of Many
Future Win-Win Outsourcing ? Key Take-Aways
Figure: Key Features of Win-Win Outsourcing
Provider/Partner Integration
Customer IT/Business Integration
Collaborative Provider/Customer Solution Development
Customer-Centered Governance
Customer Focus and Joint Customer Stewardship
Essential Guidance
Actions to Consider
Learn More
Related Research
Synopsis
Ordering and More Information
Price and Delivery Options



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