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.
Ritesh Idnani is the chief operating officer of Infosys BPO and one of the 15 members of the executive leadership team at the Infosys group of companies. He successfully helped scale Infosys’s BPO business from $43 million in FY 2005 to $427 million in FY 2010. Based in New York City, Idnani focuses on managing […]
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 […]
For the most part, industry experts say the midmarket is poised for significant growth in outsourcing during the next five years. However, some point out that the nature of midsized companies may hinder growth. Outsourcing Center interviewed providers and advisors serving the midmarket regarding upcoming changes in this market and the risks and challenges that […]
Data collected by Blazent reveals significant errors in the typical controls used for IT outsourcing governance. The result is expensive manual processes and inaccuracies that lead to time-consuming reconciliation exercises, yield inaccurate data, and are very expensive. Without a trusted baseline, disputes are inevitable, and there is no solid foundation for their resolution. This paper […]
Transparent pricing, highly standardized processes, vertical solutions. Companies will select service providers that deliver the best quality and value-add, not just the best price. “Increased adoption of standardized solutions in outcomes-based models will drive outsourcing to become more utility based,” says Don Schulman, General Manager, Finance and Administration at IBM. “And that becomes where the […]
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 […]
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.
Every penny counts. CA restructured 30 offices worldwide in just 90 days. The savings went to the bottom line when the company reported its year-end results to Wall Street.
After Hurricane Katrina, Touro Infirmary’s IT department had to get the IT infrastructure up and running amid the devastation. Siemens stepped in to help even before the two signed a contract so the hospital could reopen. Today the IT department is working on projects like electronic medical records and computerized physician order entry (CPOE) that would have been impossible before.
Sabre Tests Strategic Offshoring with NIIT Technologies, Then Opens Captives Around the Globe | Article
In 2001, Sabre Holdings evaluated options to reduce its sales and distribution costs. But the company also wanted to minimize the risk of having all its IT knowledge in one region. Its first offshoring relationship was with NIIT. That has been so successful Sabre has since opened its own captive centers in Poland, India, Argentina, and Uruguay. This story relates the benefits of this model.
John McKenna is chief strategy and services officer for CompuCom, a $1.7 billion IT service provider. The company currently manages more than 2.3 million seats; its help desk agents answer almost three million calls a year. McKenna discusses how to select an IT provider and create a successful ITO relationship.
As Canada’s central bank, the Bank of Canada works to preserve the value of money by keeping inflation low. It also acts as the government’s fiscal agent. More than 400 employees worked on the retail debt program, consuming 85 percent of the bank’s IT capacity while not a core activity. Outsourcing to EDS was the answer. However, this assignment had some extra requirements.
It’s very possible for buyers to form highly successful relationships with a new provider after experiencing a failed relationship. But there are pitfalls. What are the best practices that ensure success in these situations the second time around? Here are some industry experts’ insights.