The Strategic Value of offloading non core functions as a cost saver and empowering the business to better focus on you core competence is rarely questioned - WHEN DONE WELL.

1. Creating Value by Getting Rid of It
•Offshore Services
•Out Source
•Spin Off Non Core Functions
•Manage to Performance Metrics
Joe Orlando TorchLite Group
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2. Creating Value by Getting Rid of It
• Spin off leveraged assets, overhead and
variable expense for a fixed monthly
operating expense
• Move Capital Expense to Operating Expense
– CapEx to OpEx
• Reduce Debt on Balance Sheet
Joe Orlando TorchLite Group
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3. Joe Orlando TorchLite Group
Logistics
Project Management
Contract Management
Human Resource Management
Supply Chain Management
Claims Processing
Procurement
Customer Support
Technical Support
Contract Manufacturing
Commodity Sourcing
Transaction Processing (Billing)
Regulatory Processing
(Health & Safety; Pension; Medical)
Facilities Management
Security
Design
Market Research
Fleet Management
DataCenter Management
Colocation Services
eCommerce Transactions
Web Hosting
Application Hosting
Storage Area Networks
Electronic Benefits Transfer
Public Services (Housing, Prisons,
Social Services, Education, etc.)
Applications Development
Applications Support/Maintenance
Call Center Management
…
It’s not just IT anymore…
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4. Joe Orlando TorchLite Group
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5. What Customers Need… a Seasoned Guide
• “As is” and “Should Be” Assessments
• Licenses; Services; Utilities; Bandwidth;
Upgrades, etc. – Genuine True Cost
Assessments
• Non Core and Carve Out Implications
• Best Practices for RFP and Contract
Construct. Often Overlooked:
• Reporting and Metrics
• Scope Creep and Change Management
• Dedicated Resources Approval
• Notifications and Escalations
• Path back
• Liquidated Damages
• Remediation Steps
• Negotiation Tactics – Do not Select and THEN
Negotiate.
• Role Definition - Yours
Theirs
• Rules of Engagement
• Ways to Reduce Finger
Pointing
• Performance Holdbacks
Defined
Joe Orlando TorchLite Group
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6. Joe Orlando TorchLite Group
•Reduce Overhead and Capital
Expense
•Secure long term fixed costs
from internally managed
variable costs
•Less stringent credit
requirements to acquire
equipment and services
•Capital infusion from spin off
entity while retaining SLA and
existing process
•Retain and equity interest in a
new entity
•Sell IPR to spin off for cash
and/or royalty stream
What’s in it for ME?
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7. Joe Orlando TorchLite Group
•Secure long term anchor contract
increase bankability
•Extend services to other
companies and industries
•Existing Process and Asset base
•“Micro cosmic” cost containment
•Less ramp up and established
history
•Industry expertise and track
record
•Leverage brand and reputation
What’s in it for ME?
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8. Joe Orlando TorchLite Group
•Long term high value contracts
•Economies of Scale
•Track record leads to more
contracts
•Volume reduced capital costs
What’s in it for ME?
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9. Joe Orlando TorchLite Group
•Establish “best in class”
practices and procedures
•Tailored services and processes
•Specialization
•Regulatory Familiarity
•Industry Expertise
What’s in it for ME?
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10. Joe Orlando TorchLite Group
•Alternate funding options
•Penetration into more Accounts
•Expand asset base
•Secured Lending
What’s in it for ME?
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11. Joe Orlando TorchLite Group
•Expand customer base
•Expand industry experience
•Expand specialized knowledge
and practices What’s in it for ME?
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12. Joe Orlando TorchLite Group
•Funding option
•Long term asset in contracts
•Amortization and Depreciation
against long term fixed revenue
stream
•High growth market area
•Access to IPR
What’s in it for ME?
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13. Joe Orlando TorchLite Group
•Customer penetration
•Expand customer base
•Secured co signature or SLOC
•Attractive ROI
•Long term cash flows
What’s in it for ME?
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14. Joe Orlando TorchLite Group
•All major players are service
provider side, few organizations
offer client side advice so
customers are led by sales
people
•Provide client side advice on
how to structure, manage and
benefit most from outsourcing –
A Seasoned Guide is your
Secret Weapon
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