The best outsourcing agreement for your organization is not necessarily the one with the lowest price. Your primary goal when negotiating and structuring an outsourcing contract is to develop an agreement that achieves your business objectives, not just on day one but throughout the entire term. To do this well, you must understand the overall [...]
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 [...]
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 [...]
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. [...]
Buyers of outsourcing services want their service providers to invest in technologies that bring continual improvement to the outsourced processes. Providers want to invest only where it is also beneficial to their margins in the long run. Therein lies a conflict. Are there reliable predictors of a buyer’s intent for a long-term, mutually beneficial relationship [...]
Outsourcing Excellence Award – Best Global Services: Carillion PLC and Accenture Carillion PLC is a leading support services company. It operates in a highly competitive industry where achieving its margin targets demands a rigorous approach to controlling costs and delivering profitable growth. Carillion’s disparate processes and underlying systems were a potential obstacle to that growth. [...]
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 [...]
Business process as a service (BPaaS) is emerging to be a BPO game-changer reminiscent of Software as a Service (SaaS) a decade ago. Specifically, BPaaS is adding arrows to organizations’ outsourcing quiver in how they approach their finance and accounting and other back-office functions. “Businesses that leverage traditional outsourcing deals are looking to move off [...]
As GE’s Jack Welch states, mistakes can often be as good a teacher as success. 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 and providers of outsourcing services. These lessons learned [...]
An outsourcing provider’s quality of services and the achievement of the agreed-upon mutually beneficial objectives are essential to success. But there are additional actions that service providers and buyers can take to boost the return on investment and increase the life expectancy of their relationship. To identify these relationship-strengthening actions, Outsourcing Center conducted a survey [...]
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 [...]
Industry media, especially over the past two years, often points out that a significantly high number of outsourcing arrangements do not deliver the promised cost savings due to “hidden” costs associated with managing the relationship. This is especially true, the reports state, in outsourcing relationships with an offshore delivery component, where administrative costs increase due [...]
Flexibility started early. This was a ground-breaking contract in 1999. With no paradigm, it didn’t take long for the two to realize they made a mistake in scope. Flexibility allowed a 180-degree term. Eleven years later the relationship is going strong, thanks to its flexibility.
Document handling can have a real impact on an organization’s customer satisfaction, operational cost reduction, efficiencies and productivity, decision making, and revenue growth. However, document management is also a breeding ground for business risks. Unfortunately, for most organizations, document management is only a secondary function and does not receive the expertise and investment necessary to [...]
Among the various changes that will impact outsourcing over the next five years, Don Schulman, General Manager of Finance and Administration at IBM, says the first will be a focus on outcomes-based pricing models. “Focusing on clients’ end-to-end processes, the discussion moves to outcomes pretty fast when considering the advantage of an outsourcer doing a [...]
This article examines three outsourcing relationships and presents the nuts and bolts that enable collaboration. The three relationships share their keys for successful collaboration from the aspects of service provider selection criteria, aligning interests for the long term, and effective communication.
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