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NokiaTietoEnator
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This article describes a case study of software outsourcing between Nokia Corp. and TietoEnator in 2001. Customer, Partner and Case Briefing The customer party is Nokia Corporation and its department - Nokia Networks/IP Mobility Networks(NET/IMN). Nokia is a leader in mobile communications. The company wants to focus on communications and divest its non-core operations, which results in in both exponential growth and high profit. The partner party is TietoEnator. It is the largest IT services company in Nordic countries offering services on banking, finance, telecommmunication, media and forestry. It provides customer partnership & repeatable solutions and have collaboration with Nokia and Ericsson in R&D of fixed networks & mobile systems. Nokia's top management advocated aggressively networked product creation and core-context thinking, and outsourcings were one part of the implementations of business unit strategy.Finally, it decides to outsource some DX-200 based software products. The outsourcing started in Dec, 2000 and ended in Apr, 2002. At the end of the collaboration, both sided decided to extend the contract. Process The process includes five phases: planning, developing, implementing and managing the relationship. Planning * Motives * Form an outsourcing team * Support the outsourcing partnership process * Form a business plan Developing * Define competences for outsourcing * Screen potential partners * Evaluate the partner candidates * Make the decision and negotiate * Consider impact on other collaborators and the employees * Define information technology requirements Implementing * Develop an outsourcing timeline and a communication plan * Plan and carry out the outsourcing transition * Nominate a relationship manager and establishes the relationship * Build the network infrastructure and create IT practices Managing the relationship * Develop the relationship * Monitor the relationship * Exchange information * Negotiate project agreements * Coordinate the work * Handle the conflicts * Manage risks * Manage competence transfer * Manage support services Results and Conclusion The outsourcing is a great success. Both company agreed on extending the contract. Success factor * Experience * Stable negotiation team * Consider 4 parties * Cultural fit * Realistic vision of the relationship * Business is cost-effective * Information exchange * New practices * Commitment of both companies * Openness & honesty * Interaction See Also
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