The Artha Shastra Framework is a structured set of processes, methodologies, and tools to map client needs to service provider capabilities.

Once the high-level roadmap is created in the Requirement Definition stage of the Artha Shastra framework, the Delivery Model stage takes a micro-level view of the roadmap to develop a working model and implement the outsourcing strategy. It is during this phase that the bank and the BPO or service provider "set the ball rolling".

One of the core principles of the Artha Shastra view of outsourcing is that merely replicating the methodologies applied by peers, competitors, or service providers does not ensure success of an outsourcing strategy. Instead, the decision to outsource activities must be driven by an organization's requirements, its risk-taking ability, and its economic interests - if this results in a break from past practices, so be it. Artha Shastra's Delivery Model creates a well thought-out and economically viable outsourcing plan to mediate, coordinate, and efficiently manage the transition of processes from the outsourcing organization to the outsourcing service provider.

Delivery Design: Cost-Control Curve

Outsourcing planning involves making several trade-offs. Artha Shastra uses the cost-control curve-derived from the familiar risk-reward curve to develop outsourcing options based on trade-offs on several dimensions. An organization's desired "position" on the cost-control curve - the optimal trade-off for the level of risk and return acceptable to the bank - forms the basis for the final implementation and delivery of the outsourcing strategy.

A typical cost-control curve:

Delivery Implementation

Once the delivery model is designed, our framework uses Artha Shastra tools to create an operating framework for implementing the outsourcing partnership. This involves the following: