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 [...]
Globalization has increased the level of competition; businesses need to be highly flexible, scalable, nimble, and responsive to customer demands. Businesses need a new set of capabilities to remain competitive. However these capabilities cannot be acquired cost-effectively in the traditional manner. There is need to go beyond and leverage alternate solution deployment and service delivery [...]
Organizations that turn to outsourcing to achieve their business objectives first develop a business case that includes such components as cost savings and avoidance objectives, business value benefits, and risk assessment of potential negative impacts. But what happens when the initial business case stops working because of unanticipated impacts? Both a Deloitte Consulting study and [...]
In an outsourcing arrangement, decision makers at the buyer’s organization look to maximize the value of their outsourcing investment. They therefore look for a service provider that not only has the requisite process, industry, and technology expertise but one that also can manage to uncertainties and minimize the buyer’s risks, enhance the buyer’s agility, and [...]
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.
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.
Read how the parties communicate proactively, honestly, and transparently, enabling them to work collaboratively to resolve issues, take advantage of opportunities, and ensure their interests remain aligned. After 10 years together, the gray line between the two has vanished. Here’s how they communicate.
Northern Arizona Healthcare wanted to become one of the top three hospitals in Arizona. Today its executives believe it is as good as any hospital in America. Its new IT system provides easy-to-access, real-time data for its medical staff. The hospital established a $1 million annual bonus if Perot Systems met four stringent financial criteria in its revenue cycle work.
Why do some buyers decide to renew their outsourcing contracts early before the term expires? Outsourcing Center studied 92 relationships to identify the drivers for early renewals. The study also revealed top qualities of providers appreciated by buyers in early-renewal deals.
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.
Service was so poor with Aon’s first outsourcing supplier that it was losing customers. Then it switched to Alfinanz, which had both IT and industry experience. Now Aon is so successful it is challenging its biggest competitors and winning most tenders!
Outsourcing cannot succeed unless both parties’ interests are aligned and they can manage to overcome inherent conflicts. In deals with government clients, there will always be an inherent conflict of interests. We studied a highly successful Canadian government relationship. This article shares their relationship best practices and framework that keeps their interests aligned.
Traditional Service Level Agreements offer tangible measurements of the operational value and financial merits of a sourcing relationship. But what about the less obvious gauges of business value? Learn more about Balanced Scorecard, Six Sigma, Total Quality Management, and other tools and techniques for measuring, describing, and aligning outsourcing relationships to business objectives.
It’s very possible for buyers to form highly successful relationships with a new provider after experiencing a failed relationship. But there are pitfalls. What are the best practices that ensure success in these situations the second time around? Here are some industry experts’ insights.
Move from ad-hoc, vendor management to a structured “sourcing management” strategy. Download the white paper by Oblicore, the leading provider of Service Delivery Management software.
Outsourcing Center undertook a study of 237 outsourcing arrangements in the Outsourcing Excellence Awards program during 2002-04 to determine the outstanding aspects of how successful relationships work. The study revealed a set of symptoms, or characteristics, evident in each case where the parties achieved their anticipated (or more) value outcomes. This paper presents the findings [...]
Loading ...
Outsourcing Buzz Blog Outsourcing Alert
