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 [...]
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 [...]
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 [...]
Many buyers of outsourcing services encounter difficulties in realizing the full benefit of their outsourcing relationships. In this paper, sourcing advisor firm Alsbridge identifies buyer attributes that lead to underachievement of outsourcing value and discusses how those attributes relate to mistakes in governance. The information covers such areas as guidance in product development, ownership of [...]
Most companies that outsourced a portion of their finance and accounting (F&A) functions in the early to mid-2000s generated great savings but are probably overpaying now for the service levels they are receiving. More than $2 billion dollars of outsourcing contracts will expire in the next 12 months, and sourcing buyers need to be prepared [...]
Outsourcing is no longer a risky undertaking; it’s a mainstream business strategy. However, despite the strong adoption, many outsourcing relationships continue to fail. This white paper takes a look at what drives outsourcing success and presents detailed information about six key success factors. The paper cites findings from studies of such firms as Gartner and [...]
Outsourcing a help desk can appear to be an easy strategy for reducing cost and improving service levels. However, there are significant challenges and pitfalls that can erode the return on investment. The top challenge is partnering with the right vendor. This white paper pinpoints the 11 biggest mistakes that companies make when choosing an [...]
In studying outsourcing relationships through Outsourcing Center’s annual Outsourcing Excellence Awards program since 1996, Outsourcing Center has aggregated and analyzed the lessons learned – mistakes and successes – by hundreds of buyers of outsourcing services. These 100 lessons learned focus on issues related to each phase in the outsourcing life cycle – provider selection, contract [...]
New capabilities, like cloud computing, software-as-a-service, mobile device web access, and data center virtualization and consolidation, are significantly changing both the possibilities and the complexities of outsourcing IT functions. Analysts predict radical change in the shape of IT “factory” functions such as end-user support and help-desk services. However, an Information Week survey notes that almost [...]
Buyers are sourcing more operations than ever before, so it is increasingly important that they manage outsourcing initiatives to eliminate issues that can diminish their return on investment and extend the intended value of each outsourcing relationship. This paper discusses targeted considerations in outsourcing readiness and supplier due diligence to avoid common outsourcing pitfalls and [...]
For many companies, the discussion about outsourcing is no longer “why” or “what” and has turned to “where.” As BPO options increase worldwide, the service delivery location assessment becomes a major component of the provider selection process. The goal is to identify the location that will yield the maximum strategic benefit – combining the best [...]
Many companies are exploring the value of Business Process Utilities, or BPU, a new delivery model for BPO in which companies trade customization for accelerated implementation and cost savings. Click here to download this white paper
There are handbooks and summits to help you learn about the Outsourcing Life Cycle. There are consultants who put their knowledge at your disposal to formulate requirements, advise which terms and conditions to include in agreements, and negotiate deals on your behalf. All of which make it straightforward to develop an outsourcing agreement, right? Learn [...]
The importance of IT within BPO is substantial, but often difficult to articulate in RFPs. BPO RFP documents should include sections with explicit, IT-related requirements. In this document, SAP has compiled best practice examples on how the related requirements can be made explicit.
Baker & McKenzie decided it was time to publish an article on building trust in the negotiation process. There is nothing new here – just ten simple thoughts were collected from some of their past deal experiences. Many of their thoughts likely apply to almost any relationship deal.
Outsourcing Center undertook a study of 237 outsourcing arrangements in the Outsourcing Excellence Awards program during 2002-04 to determine the outstanding aspects of how successful relationships work. The study revealed a set of symptoms, or characteristics, evident in each case where the parties achieved their anticipated (or more) value outcomes. This paper presents the findings [...]
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