Tag: return on investment
Collaboration is a basic ingredient in helping outsourcing relationships get better. Sourcing buyers often underestimate the effort required for good collaboration. “To use the marriage analogy, your marriage goes sideways if you don’t work on it constantly,” says Peter Bendor-Samuel, CEO of Everest Group. Alastair Mitchell, CEO of Huddle, a corporate collaboration platform, agrees.”All sourcing […]
Seven Examples of Resolving Financial Conflicts between Buyers and Providers of Outsourced Services | Article
At the point where outsourcing service providers or their customers have a conflict that will result in a monetary loss to either party, they’re walking a fine line. If they manage to resolve the issue with a mutually beneficial solution, their relationship will be even stronger than before the conflict. If not, the party that […]
Organizations are recognizing that diversity management in outsourcing makes a measurable difference in the potential return on investment (ROI). The diversity issue extends beyond a differing culture where offshore resources are involved. And it goes beyond ensuring that an organization employs a workforce of multiple races and ethnicities. In outsourcing, managing diversity focuses on getting […]
At Outsourcing Center, a frequent comment we hear from buyers of outsourcing services is: “If I had it to do all over again, I would put in place a more effective structure for managing the service provider and the relationship.” The problem is significant enough that it spawns many advice-oriented articles with titles such as: […]
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 […]
In outsourcing, “best practices” are a method, procedure, activity, technique, or process known to produce desired outcomes. Who deems them to be the “best?” Often, it’s an industry or association regulation or recommendation. Sometimes, it’s an expert opinion such as those from an analyst or consulting firm; at other times, it’s a service provider or […]
Why do outsourcing initiatives fail? I believe poor change management is to blame. Poor change management translates into: Slower speed of adoption Lower ultimate utilization Lower proficiency Together, they all hurt the “return on investment” (ROI) “in an outsourcing effort and are limited to a “past focused” thinking to do the same activities better, cheaper, […]
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.
How Outsourcing Helped a Utilities Company Save $16 Million While Lowering Security Risk, Improving Client Satisfaction, and Flexibly Working through an Extremely Challenging Acquisition | Article
PSEG wanted to increase value on IT spend and tasked CompuCom with providing end-user support services to more than 11,000 users across 85 locations. They’ve worked flexibly together to ensure their interests remain aligned in developing solutions that increase productivity and decrease down time. Within three years, PSEG realized $16 million in IT services cost savings.
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.
How Outsourced IT Provided Wireless for the Citizens, Cut the Crime Rate, and Helped Minneapolis During a Crisis | Article
This relationship captured the best in show award because it demonstrated excellence in partnering while revamping the city’s IT infrastructure, including installing a city-wide Wi-Fi network. This new infrastructure played a crucial role in the city’s swift response to the I-35 bridge collapse and the success of the Republican National Convention when the entire nation was watching.
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.
OMFN Knew It Selected the Right Supplier When Perot Systems Expertly Handled a Deluge of Volume During Migration | Article
Old Mutual had earned the unhappy moniker: the worst in the industry. It outsourced to become competitive. During the first two migrations, events conspired to triple volume. Read how the two partners learned to work together under the crushing volumes.