Striking down the concept of “total cost of ownership” in favor of looking at value

December 2, 2014

We had another great TON program on November 27, hosted by DSB in Høje Taastrup.



Martin Börjesson, DSB’s CIO, kicked off the day’s program with an engaging session on DSB’s work to leverage the IT operations outsourcing set-up as a business enabler. Martin struck down the concept of “total cost of ownership” as an outdated one that ignores value. Under Martin’s stewardship, increasing value by leveraging IT is the name of the game at DSB.



Martin gave us insight as to the logic behind the original decision to outsource IT operations and the significant journey the organization has been on since to re-align and adapt to the new realities. Among the points raised were the challenges of living on a daily basis with a legal contract based on tough and strict terms. Relevant to many of the experiences of the TON community, DSB also faced significant challenges in organizational change and stakeholder alignment.



Among the lessons learned, Martin made note of the strategic necessity of engaging with the business functions and C-level in order to properly conceive and implement outsourcing initiatives. He also emphasized the critical importance of both the supplier and the client being aware of each others’ business drivers so that business interests can be aligned on both sides.



Martin’s colleague, Morten Kjærgaard, brought our attention to the people aspects of the outsourcing decision at DSB. Resources were shifted to the vendor while the retained organization needed to work in new ways to successfully deliver in the new structure. The challenges of actually making this work demanded that DSB and the vendor developed a common framework for  both standard and customized requests. This work to develop a common framework necessitated a shared initiative of process owners at both DSB and the vendor and has been a key factor of improving the performance of the outsourcing set-up.



Continuing our focus on “People” and outsourcing, three of our member organizations came with challenges that our group had a chance to discuss.



Lotte Astrup, Director Program Management Office, Xellia Pharmaceuticals, opened up the afternoon’s challenges sessions with the widespread challenge of conducting effective and productive teleconferences. Anders Nielsen, Legal, IO Interactive, presented his organization’s challenge of ensuring they get the A team from their vendors. And Stella Kjær Hansen, Sr. Consultant Resource Delivery Management, LEGO, discussed the challenges of managing at a distance.



Thank you for helping to make 2014 such a successful year for the TON network. We’re looking forward to even more in 2015!