Partnership: More Than a Fancy Phrase. One of the most telling changes in future outsourcing will be the reshaping of relationships as companies continue to move away from cost reduction as the single key driver.
The proliferation of outsourcing is just phenomenal across types of activities, across industries and at every level of the organization.
Outsourcing as a management tool will continue to be actively employed. Today, if a manager doesn’t look at all the ways of obtaining resources to do the best job for the company, he’s not doing his job right.
The information technology (IT) outsourcing industry was launched by an explosion of rapidly changing technology and companies’ needs to access benefits of that technology at the lowest possible costs. The bottom line was cost containment. Today, that line is a bit blurred. Although cost containment continues to be a major issue, many companies have other goals as their primary reasons to outsource.
Are you getting ready to negotiate an outsourcing contract? If so, place flexibility high on the list of negotiation goals. Many customers involved in long-term outsourcing contracts in the past have learned the hard way that the restrictive and static nature of normal contract terms can tie their hands in the rapidly changing outsourced IT environment.
Tall oaks from little acorns grow. That old Latin saying applies to the staggering growth taking place in international Information Technology (IT) outsourcing. The growth trends predicted over the next few years in the US and around the world are rooted in a strong and established corporate practice of outsourcing. As this growth continues, COMPASS sees a worldwide need for more effective, corporate outsourcing strategies.
Ah, the honeymoon stage of a business relationship, that early stage when everyone is enthusiastic, when you envision benefits that will continue to multiply, when you celebrate each small increment of success. You’re focused on the objectives of the agreement. You talk frequently. You nip and tuck and shape exactly the relationship you know you need.
Culture shock. That’s not something most would expect conservative icon Rolls Royce to embrace, but that’s exactly what the company sought in its outsourcing relationship with EDS.
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