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 [...]
Applications have personalities? Yes, they do, according to HP Distinguished Technologist, E.G. Nadhan. Nadhan is the Lead Technologist for Global Strategic Capabilities within HP and the Chief Architect for HP’s Applications Process and Tools Framework. Nadhan explains that as HP helps its customers manage their applications, it is important to help the IT executives categorize [...]
Although outsourcing is considered a mature business strategy, many transactions either fail or must be renegotiated within the first two years. Inadequate provider selection techniques (often driven by clients and endured by providers) are significant contributors to such failures. This research paper explores the effects of sourcing failure, identifies several common mistakes found in typical [...]
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 [...]
Most of us have been down on our knees praying that the relationship does not blow up over an error. Perhaps the cutover was delayed because the provider did not conduct sufficient user acceptance tests, or an employee committed fraud within a client account because controls were inadequate, or the client did not provide the [...]
Outsourcing rookies, of course, face many challenges in achieving their desired return on investment because their deals often lack one or more elements that are foundational to success. And all outsourcing relationships encounter challenges that arise in unanticipated situations. But what about experienced buyers and relationships that are more mature? What issues arise in their [...]
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 [...]
Outsourcing Excellence Award — Most Collaborative: Barclaycard US and Firstsource “We are getting results that exceed our plan. By the end of the first year, performance of our former employees who are now on the Firstsource team was at or above what it was when we initiated the transition.” Brian Duffy, head of service and [...]
There’s no shortage of methodologies and advisories on best practices and risk mitigation strategies for the transition phase of outsourcing relationships. Even so, many buyers encounter situations they didn’t foresee when structuring their arrangement, which cause costs to rise and delay time to value. Outsourcing Center studied these types of situations by surveying companies nominated [...]
A good cultural fit is one of the most important hallmarks between a successful and unsuccessful outsourcing relationship. Cultural fit assessment is far less structured than defined processes that help you quantitatively evaluate the service provider’s solution, capabilities and pricing. To decide whether your company and the service provider will have a comfortable cultural fit, [...]
At the point where outsourcing service providers or their customers have a conflict that will result in a monetary loss to either party, they’re walking a fine line. If they manage to resolve the issue with a mutually beneficial solution, their relationship will be even stronger than before the conflict. If not, the party that [...]
Organizations that turn to outsourcing to achieve their business objectives first develop a business case that includes such components as cost savings and avoidance objectives, business value benefits, and risk assessment of potential negative impacts. But what happens when the initial business case stops working because of unanticipated impacts? Both a Deloitte Consulting study and [...]
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 Center assembled a panel of industry experts to discuss the changes in outsourcing contracts and pricing models over the next two to five years. Their insights reveal buyers and providers will approach outsourcing initiatives differently than in the past. Q. Outsourcing pricing models and contract vehicles have evolved over the past few years. How [...]
HR outsourcing went through a shake-out over the past two years due to the continual issues around scope and other challenges that buyers and service providers encountered over the past decade. The dust has settled from the revamping efforts, but there are new challenges on the horizon. Here’s what your company needs to know for [...]
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