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 [...]
South West Water provides water and sewage to 1.6 million customers in the U.K. During the transition, South West Water was adamant that anything other than business as usual was completely unacceptable — even though Accenture was implementing new processes and shipping work across the globe. The result: Complaints about billing are down by 20 percent.
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.
Royal Bank of Canada had more ADM projects than people to meet the expanding list, requiring it to somehow augment its ADM resources. Offshoring was the answer. However, a few areas of the bank had dabbled in offshoring with mixed results. No one shared learnings across the enterprise or coordinated governance or infrastructure. This relationship with iGATE did both and helped the bank grow.
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.
Some operating models clash with outsourcing’s ability to achieve objectives. Here’s a different approach, a more holistic model focused on organizational culture and behaviors. CSC is using it and experiencing notable successes!
Sometimes the source for efficiencies, cost savings and innovation is in the buyer’s own back yard.
This white paper sheds light on the high-impact role of best practices in ensuring greater success in the challenges of outsourcing relationships. The best practices are illustrated with case study models (from Outsourcing Center’s 2003 Editor’s Choice Awards nominated relationships) among a variety of industries.
Jane Drasites, Director, Benefits Delivery for BP Amoco, swears that the first year in an outsourcing relationship is just like a marriage. Some marriages don’t work very well. When Amoco (prior to its merger with BP) signed an agreement in 1993 for Hewitt Associates to handle its HR functions, it was positive it had found the right mate. Unfortunately, they didn’t go for some counseling before they tied the knot, and the honeymoon didn’t last long.
Dear Expert: Question: Can you use a balanced scorecard in an outsourcing deal? Answer: Leonard White, Everest Group.
Joe Szmadzinski is a connoisseur of outsourcing contracts. Szmadzinski has negotiated and lived through 25 outsourcing contracts in the last three years as president of System Advisory Group in Southfield, Michigan, a firm that provides interim CIOs for major corporations like Budget Rent A Car….. (outsourcing)
While it isn’t accurate to make global generalizations, the outlook for outsourcing growth during the coming year in regions around the world seems to be very positive, according to management at Michael F. Corbett and Associates.
Managing an outsourcing relationship can be fraught with challenges. Day-to-day decisions impact long-term goals. Lack of planning and misunderstandings can create difficulties in implementing strategies. Personality clashes can cause rifts in smooth operations.
For many organizations, measuring the performance of the information systems divisions is a frustrating exercise. The problem centers around confusion over what should be measured and how, as well as uncertainty over how to define value.
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