Although outsourcing is considered a mature business strategy, many transactions either fail or must be renegotiated within the first two years. Inadequate provider selection techniques (often driven by clients and endured by providers) are significant contributors to such failures. This research paper explores the effects of sourcing failure, identifies several common mistakes found in typical [...]
Most of us have been down on our knees praying that the relationship does not blow up over an error. Perhaps the cutover was delayed because the provider did not conduct sufficient user acceptance tests, or an employee committed fraud within a client account because controls were inadequate, or the client did not provide the [...]
The Outsourcing Center announced the finalists in the 2011 Outsourcing Excellence Awards last week. The annual awards program, originated in 1997, is recognized worldwide for the insights it yields regarding success drivers and over the years has resulted in a data repository for nearly 900 outsourcing relationships. Included in the repository are the factors that lead to [...]
Industry media, especially over the past two years, often points out that a significantly high number of outsourcing arrangements do not deliver the promised cost savings due to “hidden” costs associated with managing the relationship. This is especially true, the reports state, in outsourcing relationships with an offshore delivery component, where administrative costs increase due [...]
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 [...]
An Outsourcing Center study found that a lot of outsourcing buyers have relationship managers with no prior experience or training in how to manage the relationship. This article describes why this occurs and the challenges that result from this phenomenon.
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 [...]
Buyers often experience situations that fail to fulfill their expectationss. These can lead to frustration, costly renegotiations, or even failure. A study of 36 buyers reveals areas of disappointment and how to address them.
In a true outsourcing partnership, each player contributes to the well-being of the relationship. But sometimes the buyer goes the extra mile to take care of the supplier. Read how Ping Identity worked with Luxoft’s engineers to create the best possible outcomes.
Why do some outsourcing relationships shine and others fail miserably? A new study by Capgemini lists nine steps to relationship success.
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.
This report debunks several myths and shows that outsourcing has become a “ticket” to the fast-changing game of business.
A 400-person manufacturing concern outsourced its employee evaluations; the effort failed. But the company needed to capture the benefits of HRO. The second time it found a supplier who delivered more than it promised.
DuPont promised it would deliver its Online Fabric Library at a trade show in Paris. The original developer dropped out three months before the deadline. DuPont turned to Freeborders, a supplier with offices in China. The Chinese team finished the project early. Read why China is becoming an offshore hot spot.
Many view having to change suppliers as the ultimate outsourcing nightmare. Larry Miller’s first task at STMicroelectronics was to switch to Unisys. Here are his four rules for change.
Determining the Sweet Spot in Level of Effort and Spend – Recent legislation impacting corporate internal oversight and governance, along with media attention on failed outsourcing relationships, has caused a renewed interest in the role and value-producing impact of governance structures in outsourcing arrangements. This paper discusses the appropriate level of spend and effort necessary [...]
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