Taking a holistic approach to BPO services enables transformation, outcome-based solutions, and ensures a company will be able to support future business changes. This paper explains the change in mindset and approach that needs to occur in order to yield these results. Companies must move beyond a focus on labor arbitrage and the traditional view [...]
Data collected by Blazent reveals significant errors in the typical controls used for IT outsourcing governance. The result is expensive manual processes and inaccuracies that lead to time-consuming reconciliation exercises, yield inaccurate data, and are very expensive. Without a trusted baseline, disputes are inevitable, and there is no solid foundation for their resolution. This paper [...]
How does an enterprise move IT money from support and maintenance, which can devour up to 80 percent of its IT budget, to innovation? HP has found a way. “We’ve developed a different way to look at the applications in a corporation’s portfolio. The goal is to align the applications to the business’s overall strategy [...]
New capabilities, like cloud computing, software-as-a-service, mobile device web access, and data center virtualization and consolidation, are significantly changing both the possibilities and the complexities of outsourcing IT functions. Analysts predict radical change in the shape of IT “factory” functions such as end-user support and help-desk services. However, an Information Week survey notes that almost [...]
Performance metrics are a measure of an organization’s activities and performance. All too often, the measures that focus on day-to-day operations have no relevance to the end reality, according to Nagendra P. Bandaru. He discusses how to create the correct SLAs.
After buyers and service providers begin working together, they find aspects about each other and the relationship they hadn’t anticipated and planned for or issues about which they had mistaken assumptions. Outsourcing Center surveyed 64 buyers on what caused those issues and how to successfully address them.
The biggest challenge with service provider governance is designing a good program that minimizes the increased workload of already-stretched resources. Linda Tuck Chapman shares how to design and deploy a governance program that focuses on service provider performance and risk management.
The Oklahoma Department of Human Services used paper claims to process payment to 4,300 childcare providers who watched 43,000 kids. Some had to wait six weeks to get paid! In addition, childcare claims accounted for 20 percent of the workload but took 80 percent of its time. Fraudulent claims totaled $10 million a year. A ground-breaking IT system the department created with ACS fixed everything.
Cost and price. It’s crucial that buyers understand both when it comes to outsourcing. What is the cost of providing business services internally? What elements comprise that cost? What is the price for comparable services from an outsourcing service provider? What cost elements affect the provider’s price? For the service levels it commits to perform, [...]
This article discuss predictions and trends in outsourcing for 2010 through 2015.
Outsourcing Center’s 2009 Outsourcing Excellence Awards program revealed trends in how buyers are structuring and modifying service level agreements (SLAs). This paper presents lessons learned in structuring SLAs and best practices in tying penalties to SLAs. This information is examined in light of two different points in time in an outsourcing relationship: (1) when structuring [...]
Océ Business Services has handled its share of emergencies for Verizon Wireless, including the anthrax scare after 9/11 and the ravages of Hurricane Katrina. And its improved processes have generated savings of $1.5 million rather than the projected $300,000 – exceeding expectationss by 500 percent. Read why this relationship succeeds.
What are the real risks in offshoring both ITO and BPO work? Professor Ravi Aron, John Hopkins University, says understanding those risks helps buyers set up procedures to make their offshore engagements more successful.
Eric Rea, president of se2, believes outsourcing may be one of the best ways for insurance companies to survive the current difficult times. He sees them as a call to action to make the necessary changes to an outmoded business model. se2 even has an innovative way to finance the transition.
Outsourcing to two different suppliers is tricky but doable. But cutting your IT into six different pieces? Sounds like a guarantee for a migraine — but not for the Alliance Group. It has written an outsourcing policy that insures great benefits, including a return on investment of 20 percent.
Existing outsourcing contracts, signed in an earlier era of stabililty, may not be structured optimally for the current level of inflation. Both buyers and suppliers need to assess if their contracts expose them to inflation risk. The degree of risk depends on how the agreement designed the price adjustment mechanism. Paul Nowacki and Chetan Unadkat explain what to do to mitigate.
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