New delivery models, new pricing models, service providers’ new marketing strategies, moving up the value chain to intellectual arbitrage, new technologies, real-time customer interaction, globalization, and new standards and regulations – these factors set the stage for risks for buyers of outsourcing services in the next two to five years. (Read Forces of Change Shaping […]
Service level agreements (SLAs) play two important roles in an outsourcing arrangement. They set the stage for the service provider’s accountability, and they are the major factor in determining the price of the service. The buyer of outsourced services can achieve a comfort level that it’s getting what it pays for if it regularly monitors […]
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 […]
Key Moments that Make or Break Outsourcing Relationships – Buyers Behaviors that Impact a Provider’s Delivery of Services | White Paper
In an outsourcing arrangement, decision makers at the buyer’s organization look to maximize the value of their outsourcing investment. They therefore look for a service provider that not only has the requisite process, industry, and technology expertise but one that also can manage to uncertainties and minimize the buyer’s risks, enhance the buyer’s agility, and […]
After buyers and service providers begin working together, they find aspects about each other and the relationship they hadn’t anticipated and planned for or issues about which they had mistaken assumptions. Outsourcing Center surveyed 64 buyers on what caused those issues and how to successfully address them.
Talecris was a spin-out. The new company had a drop-dead date to separate its IT systems from its parent. This was a complex challenge with much risk. Three weeks after the cut-off date, Talecris faced a business challenge that easily could have put it out of business. Together the partners weathered the storm.
When this outsourcing relationship started, Grupo Posadas was a hospitality provider in Latin America. Today, it has transformed itself into a services company with multiple revenue streams in a variety of vertical markets. Grupo Posadas formed four new companies based on the platform it created with Oracle On Demand.
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 […]
Guidelines for Maximizing Your Return on Remote Infrastructure Management Outsourcing (RIMO) | White Paper
Why do some organizations achieve more value from outsourcing than others? The answer to this question – in a RIMO context – is the focus of this white paper. Essentially, the buyer controls the amount of the ROI in a Remote Infrastructure Management Outsourcing (RIMO) arrangement because the buyer’s up-front decisions – before signing a […]
How important to the value proposition for an outsourcing initiative is the service provider’s domain knowledge specific to the buyer’s industry? Many buyers report that the provider’s expertise in a particular business process ranks higher in importance than industry expertise when selecting a service provider. But there are situations where industry knowledge is crucial, especially […]
Predictions: Marketplace Turmoil and Change in How Outsourcing Relationships Work Over the Next Five Years | Article
Getting from A to Z (from the current state of outsourcing relationships to the future state of how relationships will need to work in order to bring about the outcomes that buyers demand) is not an easy path, and some providers will fall away during that journey. In addition, cloud computing changes the entire picture. […]
Outsourcing Center’s 2009 Outsourcing Excellence Awards program studied the characteristics that buyers in the study used to identify/determine the success of their deals. Do they define “success” as attainment of the mutually agreed-upon objectives by the end of the contractual term? Do they define it as only achievement of actual requirements? Do they include in […]
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.
Springhill Medical Center hired Eclipsys to overhaul its IT. Medication errors fell 80 percent and infection rates fell by two-thirds. ER customer satisfaction soared from 11 to 92 percent. System availability went from 56 to 99.999 percent. And the new electronic medical records helped the Alabama hospital weather Hurricane Katrina.