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.
A new, more strategic outsourcing model is necessary for speeding time to market yet also limiting the development cost of new products. It requires a different kind of thinking, communicating, and strategizing. Here’s how to leverage this new model for competitive advantage.
From the outset, Microsoft and Accenture implemented several best practices for success in strategic relationships. They included a gain-sharing performance incentives to keep their interests aligned and established performance-based milestones. Microsoft also made sure Accenture had enough funding to make the right decisions to keep the partnership successful.
The worldwide mortgage markets have seen significant change even before today’s credit crunch. Cheltenham & Gloucester (C&G), the mortgage arm of the Lloyds TSB Group, had to change its fundamental business model to compete. Outsourcing and offshoring gave the mortgage operations the remodel it needed.
Mid-size companies are limited in their ability to drive continuous improvements in cost and performance for strategic sourcing of goods and materials. And it’s too costly for companies to maintain domain expertise in every category of spend and keep up with current market in each area. Outsourcing to Source One solves these problems, and a contingency-based model for pricing based on a percentage of savings achieved provides even more value.
Innovation is outsourcing’s new buzz word. However, it’s a lot easier to talk about innovation than do it. SAP’s Gianni Giacomelli discusses the techniques that work and the traps to avoid.
Old Mutual had earned the unhappy moniker: the worst in the industry. It outsourced to become competitive. During the first two migrations, events conspired to triple volume. Read how the two partners learned to work together under the crushing volumes.
No one wants to wait three months to be paid. The Department of Surgery outsourced its bill collection, which cut day in accounts receivable from 94 to 50. But the change wasn’t easy; the two partners had to change how the surgeons operated (their back office.)
Bharti Airtel is a fast-growing Indian telco. It felt labor costs in India were too expensive. It wanted to solve customer care issues at the machine. So it offshored its solution–to North America. The Indian company selected Nortel for its call center technology. Together they changed the behavior of a nation.
This was one of the first North American offshoring relationships. Nortel outsourced to India in 1991 because it couldn’t find enough employees with the specialized knowledge it needed. At same time, Wipro wanted to expand beyond India. The timing was right for both partners to attempt something new. What’s remarkable: both partners are still happy after 16 years!
InBev, which brews 204 brands of beer including four global brands–Stella Artois, Beck’s, Leffe, and Brahma–had specific criteria for its network supplier. It needed someone willing to work together to open new markets like China and Russia. It also wanted someone who could work with its ASP and infrastructure provider. BT fit the bill.
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 [...]
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