If you are an outsourcing customer, an outsourcing agreement is like a three-legged stool. Its value depends on what you agree to buy, what you agree to pay and the terms of the contract. Although the agreement and the other contract terms are often extensive, outsourcing customers often underestimate, or even overlook, the value in […]
Outsourcing Excellence Award – Best Global Services: Carillion PLC and Accenture Carillion PLC is a leading support services company. It operates in a highly competitive industry where achieving its margin targets demands a rigorous approach to controlling costs and delivering profitable growth. Carillion’s disparate processes and underlying systems were a potential obstacle to that growth. […]
An outsourcing provider’s quality of services and the achievement of the agreed-upon mutually beneficial objectives are essential to success. But there are additional actions that service providers and buyers can take to boost the return on investment and increase the life expectancy of their relationship. To identify these relationship-strengthening actions, Outsourcing Center conducted a survey […]
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 […]
What Companies Need to Understand about Switching to Outcome-Based Approaches in Outsourcing | Article
Among the various changes that will impact outsourcing over the next five years, Don Schulman, General Manager of Finance and Administration at IBM, says the first will be a focus on outcomes-based pricing models. “Focusing on clients’ end-to-end processes, the discussion moves to outcomes pretty fast when considering the advantage of an outsourcer doing a […]
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.
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 […]
Why Shell Created an ‘Ecosystem’ of Three Suppliers When It Outsourced its IT Infrastructure | Article
Instead of outsourcing its IT infrastructure to just one supplier that takes care of everything, Shell chose to outsource to best-of-breed suppliers. It created an IT ecosystem designed to encourage three suppliers to work together. Read how they made multi-sourcing a success.
A new, more strategic outsourcing model is necessary for speeding time to market yet also limiting the development cost of new products. It requires a different kind of thinking, communicating, and strategizing. Here’s how to leverage this new model for competitive advantage.
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.
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.
The worldwide mortgage markets have seen significant change even before today’s credit crunch. Cheltenham & Gloucester (C&G), the mortgage arm of the Lloyds TSB Group, had to change its fundamental business model to compete. Outsourcing and offshoring gave the mortgage operations the remodel it needed.
Source One Provides End-to-End and On-Demand Strategic Sourcing Solution for Mid-market Companies | Article
Mid-size companies are limited in their ability to drive continuous improvements in cost and performance for strategic sourcing of goods and materials. And it’s too costly for companies to maintain domain expertise in every category of spend and keep up with current market in each area. Outsourcing to Source One solves these problems, and a contingency-based model for pricing based on a percentage of savings achieved provides even more value.
Cost Savings, SLAs, and Supplier Selection Criteria Benchmarks from 2007 Outsourcing Excellence Awards | Article
Outsourcing Center’s study of 86 relationships participating in the 2007 Outsourcing Excellence Awards program revealed several significant benchmarks. A major finding: buyers felt cultural fit and a partnering relationship approach were a major key to success; they used them as supplier-selection criteria more than in the past decade of the awards relationships.
Innovation is outsourcing’s new buzz word. However, it’s a lot easier to talk about innovation than do it. SAP’s Gianni Giacomelli discusses the techniques that work and the traps to avoid.