Risk-Reward Archives

Mobility Shifting the Wave from Brand-centric to Customer-centric Retailing

Outsourcing Center, Karthik Nagendra, Business Writer

Two things are of key importance in the retail industry today: margins and customer loyalty. While better sourcing, operational efficiencies and market penetration can check margins, the answers to improving loyalty or even maintaining them are complex. Retailers are increasingly being forced towards tactical solutions, rewarding customers with “money-off” deals. Much of the concept of …

Automation: the Key to a Successful Dynamic Enterprise in the "Now Economy&quot

Simon Shah, Redwood

There’s a reason automation solutions are on every business owner’s mind. Today’s business enterprise is in a state of continuous change—the pressure to optimize performance while lowering costs is enormous. The real-time expectations of the ‘now’ economy is no longer limited to manufacturing and shipping but is driven by information services, an increasingly mobile workforce …

Unprotected Tooling: High Risk Practices in Chinese Manufacturing Part 2

Thomas Keenan and Geofrey L. Master, Mayer Brown JSM

In part 2 of this series, we’ll discuss common problems in tooling as well as tooling in the real world and the importance of comprehensive, enforceable tooling arrangements. Part 1 defines tooling as part of the integrated outsourcing process as well as tooling financing and ownership. As a result of globalization and the ability of …

The Impact of the U.S. Patriot Act on Cloud Data Privacy: The Myths, the Rumors and the Reality

Outsourcing Center, Patti Putnicki, Business Writer

There’s a rumor circulating in Europe, igniting fear and paranoia among businesses and consumers alike: Big Brother is alive and well and living in a U.S.-based cloud. That is, cloud data privacy is in jeopardy. Allow us to explain. Two European companies announced the creation of the first fully European “Database-as-a-Service” cloud offering – one …

Valuing Terms in Outsourcing Contracts

Brad L. Peterson, Partner, Mayer Brown LLP

If you are an outsourcing customer, outsourcing contracts are like a three-legged stool. Their value depends on what you agree to buy, what you agree to pay and the terms. Although the agreement and the other contract terms are often extensive, outsourcing customers often underestimate, or even overlook, the value in contract terms. Why Focus …

Award-Winning Outsourcing Relationships — Three Key Ingredients in their "Secret Sauce"

Linda Tuck Chapman, President, ONTALA Performance Solutions Ltd.

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. …

Biggest Challenges in Maintaining Superior Service Levels in Outsourcing Relationships

Outsourcing Center, Kathleen Goolsby, Senior Writer

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 …

BPO Study’s Surprising Findings on Value and Long-Term Intent in Outsourcing Relationships

Outsourcing Center, Kathleen Goolsby, Senior Writer

Buyers of outsourced 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 …

Five "Gotchas" When Negotiating an Outsourcing Agreement

David Mitchell, Senior Consultant

While reducing cost is typically the primary benefit of outsourcing, you also want outsourcing agreements that allow you to realize your immediate and long-term delivery needs, provide contract flexibility and ensure that you receive maximum value for the money you will be spending. To meet those objectives, pay careful attention to the five “gotchas” noted …

Seven Examples of Resolving Financial Conflicts between Buyers and Providers of Outsourced Services

Outsourcing Center, Kathleen Goolsby, Senior Writer

At the point where outsourcing service providers or their customers have financial conflicts 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 …

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