The provider audition is often the first opportunity to connect with the entire customer decision-making team assembled to lead the sourcing decision. To win the business, you must be able to make a connection with the customer on a personal trust level. Establishing this type of relationship has become the attribute that makes a difference [...]
Business Process Outsourcing (BPO). The concept is relatively simple: instead of hiring employees to handle the necessary but non-core, transaction-based business functions in your company, pass these on to someone else. But, here’s the thing: BPO is not like dropping off your dirty clothes at the dry cleaner and having them magically transform into fresh-pressed [...]
The Sole Source Strategy 101: Initial Checklist and Readiness Self-Assessment can assist with establishing a fundamental framework for charting your course toward sole sourcing prior to a contract end-of-term event. Starting with the basics ensures you have a firm understanding of your sole source opportunities and how to move to the optimal solution. The initial [...]
When considering sourcing alternatives for IT services, buyers must make a fundamental decision on structure. Do you want a single provider or multiple providers? Both have their pros and cons. Neither of the approaches is wrong. But each presents unique challenges, both in operations and in provider management. When IT outsourcing initially evolved, very few [...]
This whitepaper provides the Recompetetion Initial Checklist and Readiness Self-Assessment that can help customers with establishing a fundamental framework for charting their course toward recompeting scope, prior to a contract term event. It covers the basic six steps that comprise a Resource strategy: Evaluate Environment Assess Sourcing Options Build/ Release Requirements Evaluate Response [...]
Negotiating a good outsourcing agreement involves much more than just achieving the pricing you desire. As you go through the process, you will go through the normal “give and take” discussions as you work with your potential provider(s). However, it is important that you do not focus solely on pricing. While reducing cost is typically [...]
Hint: 12 Months Out is TOO Late When should you start working on your next outsourcing contract? Many organizations do not address the end of a contract until the last year of its term. The notification period in the contract, typically six t-to12 months, usually triggers this discussion. However I believe this is a mistake. [...]
Despite quantum improvements to outsourcing deals and governance over the past 10 to 15 years, when it comes to achieving outsourcing excellence there’s still plenty of opportunity. Part of the challenge is that once the decision is made to outsource or change providers, the clock starts ticking….fast. It takes real discipline to know when to [...]
With the rate of technical and business change increasing through the foreseeable future, outsourcing contract renegotiations have become the new normal. Clients and providers must now develop outsourcing contract renegotiation skills as part of their core competencies in order to ensure the provider’s services are aligned with the client’s needs in terms of price and [...]
As the rupee hits new lows against the U.S. dollar this year, the issue of how foreign exchange rates impact offshore outsourcing arrangements has again come to the fore. But how swings in currency valuations affect outsourcing parties remains a complex question. A weak rupee, for example, theoretically boosts the top line of Indian service [...]
At the most basic level, the challenge with change management is that everyone knows it’s important, even that it’s make or break to the success of outsourcing engagements, but very few actually know what it is or how to do it. Even the most outsourcing-sophisticated organizations fall short in their change management activities. Sourcing change [...]
In June 2011 I was interviewing the COO of a California-based bank as part of an application strategy engagement. At the end of the conversation, he asked if Alsbridge had any data on the number of contracts in which the client repatriated all of the services. My answer was, “Off hand I don’t know, but [...]
If you are an outsourcing customer, an outsourcing agreement is like a three-legged stool. Its value depends on what you agree to buy, what you agree to pay and the terms of the contract. Although the agreement and the other contract terms are often extensive, outsourcing customers often underestimate, or even overlook, the value in [...]
Outsourcing has attracted a huge amount of attention over the past few years. The basic idea is of course very simple – reap the benefits of having a specialist do the job at a lower cost. However, setting up the right deal can be complex and there is a bewildering array of jargon. As a [...]
Behind each award-winning global outsourcing relationship is a fascinating story of extraordinary people, excellence in service delivery, lots of sweat equity, some painful bumps in the road, a mutual willingness to constructively solve problems, and trust earned. Contracts were awarded as a result of a competitive bid, so they started with a blank recipe card. [...]
When you begin evaluating service providers the basic requirements are straightforward. You want a provider with expertise in your industry, a deep understanding of your processes and a proven track record of superior delivery. The provider should be responsive, communicate clearly and demonstrate that it wants your business. However, because these are table stakes in [...]
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