Unlike most auctions, both buyers and service provicers in an IT outsourcing transaction pay if the winning service provider offered an irrational price to get the deal. Stephen Dunn offers tips to buyers on how to avoid the winner’s curse.
You have developed a sourcing strategy to engage a capable service partner for delivery of IT or business process services. You hired a reputable advisor to consult with your team to guide you through the sourcing strategy—developing and issuing the RFP, proposal evaluation, partner selection and now preparing for the transition and the complex aspects […]
While outsourcing is not rocket science, the truth is it is a nuanced science. Outsourcing models are becoming trickier thanks to technology advances. What hasn’t changed is the difficulty in negotiating your way through an outsourcing contract. There are seemingly innumerable variables to consider and account for. But if you can get the basics right, […]
The Request for Proposal (RFP) has long been the key tool for IT leaders to ensure they obtain what they deem necessary to solve a specific technical problem or need. But this traditional approach is looking rather worn and tired, limiting businesses to potential unseen benefits. It’s time to makeover your RFP process. With margin […]
A good cultural fit is one of the most important hallmarks between a successful and unsuccessful outsourcing relationship. Cultural fit assessment is far less structured than defined processes that help you quantitatively evaluate the service provider’s solution, capabilities and pricing. To decide whether your company and the service provider will have a comfortable cultural fit, […]
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 […]
LEAN, green, and savings now are the mantras of IT buyers today, according to Richard Penn. Even IT pricing is experiencing a metamorphosis. Here’s what buyers and suppliers need to know in today’s brave new ITO world.
The U.S. economic problems have impacted outsourcing in several ways, as has the increased focus on innovation and R&D in outsourcing arrangements. Both are affecting the initial stages of outsourcing decisions. Here’s a look at these trends and how they may affect your company.
Currently, a growing number of enterprises expect service providers to use service management tools, especially those aligned to ITIL v3 best practices in managing services as a business. This article discusses the trends around uses and benefits of such tools, their differences in value and approach, and how the tools enhance even the soft relationship skills in an outsourcing arrangement.
The importance of IT within BPO is substantial, but often difficult to articulate in RFPs. BPO RFP documents should include sections with explicit, IT-related requirements. In this document, SAP has compiled best practice examples on how the related requirements can be made explicit.
In this issue of Insights by Trigent, we evaluate various processes employed in establishing an outsourced development function, examine some common misconceptions, and make recommendations for reaching a successful outcome.
When Geographic Data Technology wanted to enter a new market, it turned to outsourcing to obtain the necessary resources. Its highly collaborative relationship with RMSI changed the buyer’s business processes so it could compete in the new market. The result: outcomes far greater than they imagined.
Although trust grows over time and successful outsourcing alliances evolve to become even more beneficial for both parties, the true foundation for success lies in the hands of buyers when they begin seeking a services provider. That spot in time when a buyer determines its objectives (the outcomes it wants to pay a provider to produce) and then matches its provider selection criteria to those aims is crucial to outsourcing success. Microsoft definitely demonstrated how to do it when it selected VMC Consulting for testing and other IT support services for the Xbox® video game system from Microsoft.
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.
In today’s hospitals, technology is of utmost importance to reducing costs, streamlining functions and providing the best patient care. Some hospitals have learned that outsourcing can make an enormous strategic impact and be a differentiator in competitive advantage.