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 [...]
While reducing cost is typically the primary benefit of outsourcing, you also want an outsourcing agreement that allows you to realize your immediate and long-term delivery needs, provides contract flexibility and ensures that you receive maximum value for the money you will be spending. To meet those objectives, pay careful attention to the five “gotchas” [...]
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 [...]
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 [...]
As organizations move up the value chain to achieve more dynamic outcomes and return on investment from outsourcing, the complexities and business criticality of the functions outsourced also increased. Managing through these complexities, achieving business transformation, and identifying and leveraging the “sweet spots” of value require collaboration between the service provider and client organization. An [...]
Wipro Point of View The soccer fever that gripped the world was over. South Africa, a nation known for poverty, crime, apartheid, Mandela, and a reputation for an inability to execute, became the first African nation to host the World Cup championships successfully. Soccer is known as the ‘’the world game.’’ The enthusiasm, the vibrancy, [...]
There are always unanticipated challenges in even the most well-thought-out transition. This relationship faced two major ones. First, a software vendor tried to extract $300,000 from Dell Services by forcing it to pay a licensing fee. Then, the global recession changed everything. The successful solutions were a harbinger of good things to come.
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.
Companies are facing new considerations in their decision making at different points in the life cycle of outsourcing. Pricing models, controllability of offshored work, managing outsourcing relationships, and a new source of value creation will impact decisions in 2009. But the biggest impact on decision making will come from a watershed event regarding platform BPO, which occurred in 2008. Here’s what you need to know to be ready for outsourcing decisions in these aspects.
Many companies are exploring the value of Business Process Utilities, or BPU, a new delivery model for BPO in which companies trade customization for accelerated implementation and cost savings.
An investor’s guide to business process outsourcing (BPO) economics – How to assess technology choices’ impact on company value.
There are handbooks and summits to help you learn about the Outsourcing Life Cycle. There are consultants who put their knowledge at your disposal to formulate requirements, advise which terms and conditions to include in agreements, and negotiate deals on your behalf. All of which make it straightforward to develop an outsourcing agreement, right? Learn [...]
Baker & McKenzie decided it was time to publish an article on building trust in the negotiation process. There is nothing new here – just ten simple thoughts were collected from some of their past deal experiences. Many of their thoughts likely apply to almost any relationship deal.
Attorney George Atis believes contract negotiation styles should change. His vision of a more collaborative style can cut months from the negotiations and provide more harmony after the lawyers go home.
Although it’s best to retain outside counsel with outsourcing expertise, Attorney Stacy Schultz of O’Melveny & Myers explains the unique issues that buyers’ corporate in-house lawyers need to know before becoming involved in constructing an outsourcing contract.
Ask anyone how long it takes to negotiate an outsourcing deal, and the answer will likely be the same: much too long. In fact, some would say, the outsourcing will take at least as long to negotiate as you have time available to negotiate, and probably longer.
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