If you were ranking the most talked-about topics of 2011, Cloud Computing would probably fall somewhere in between Charlie Sheen and the Royal Wedding. But, in most cases, that talk hasn’t translated into a groundswell of action. According to a recent Alsbridge eSeminar survey, one of the stumbling blocks appears to be the initial planning [...]
A good cultural fit is one of the most important hallmarks between a successful and unsuccessful outsourcing relationship. Cultural fit assessment is far less structured than defined processes that help you quantitatively evaluate the service provider’s solution, capabilities and pricing. To decide whether your company and the service provider will have a comfortable cultural fit, [...]
In studying outsourcing relationships through Outsourcing Center’s annual Outsourcing Excellence Awards program since 1996, Outsourcing Center has aggregated and analyzed the lessons learned – mistakes and successes – by hundreds of buyers of outsourcing services. These 100 lessons learned focus on issues related to each phase in the outsourcing life cycle – provider selection, contract [...]
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 [...]
Giving up control over the outsourced process is a basic principle in how outsourcing works, but many buyers find it difficult to do this at the outset of a relationship. An Outsourcing Center study looked at the factors that cause initial discomfort and what makes a buyer feel comfortable enough to turn over control to the provider.
Buyers are sourcing more operations than ever before, so it is increasingly important that they manage outsourcing initiatives to eliminate issues that can diminish their return on investment and extend the intended value of each outsourcing relationship. This paper discusses targeted considerations in outsourcing readiness and supplier due diligence to avoid common outsourcing pitfalls and [...]
A study of 65 buyers in Outsourcing Center’s 2009 Outsourcing Excellence Awards program revealed an important differentiation in service providers’ mindsets and the way they address problems or opportunities. This Decision Perspectives briefing describes the characteristics in both mindsets along with how they differ in handling issues that arise in an outsourcing relationship. This briefing [...]
You know the feelings that surround a day you’d like to forget. Stress. Anxiety. Embarrassment. Regret. Revisiting a decision. Now place all of that in the context of an outsourcing relationship on a day when something goes wrong – really wrong. A revenue-generating, ERP, or payroll system goes down. A hurricane or tsunami wipes out [...]
This article examines three outsourcing relationships and presents the nuts and bolts that enable collaboration. The three relationships share their keys for successful collaboration from the aspects of service provider selection criteria, aligning interests for the long term, and effective communication.
Data security has become the number one issue in outsourcing contract negotiations, reports John Delaney of Morrison & Foerster. Buyers believe suppliers have superior processes, so they should be responsible for security breaches. But suppliers know no system is immune. Here’s how to handle the conflict.
Expert Linda Tuck Chapman says buyers should take a long hard look at their contracts, relationships, and strategies to capitalize on current market opportunities. She lists three things to do now before the market changes.
Unilever Europe has 80 factories in 24 countries. The division used 18 ERP systems and hundreds of different finance processes, which led to high costs and varying reliability. IBM turned the organization upside down. This contract is groundbreaking in the FAO BPO sector in Europe in both size and scope.
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.
When Catapult entered the scene, the GSA had 39 vendors, 12 versions of its e-mail client, and 15 help desks. Each of the 11 regional offices provided its own IT infrastructure services with differing data security standards. Today, GSA has one IT contract and a consolidated infrastructure. Plus, outsourcing has saved American taxpayers $15 million a year.
During the transition CSC had to move 55 percent of Sun’s application development offshore, hire 450 employees in India during a national boom, and build two data centers in 60 days. Sun Microsystems expected CSC to produce immediate productivity gains with 42 fewer people, maintain service to 35,000 Sun employees, and support 600 applications. Here’s why it worked.
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.
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