Tag: trust

Why is Outsourcing Innovation So Hard? Here’s How to Make the Impossible Possible! | Article

Why is Outsourcing Innovation So Hard? Here’s How to Make the Impossible Possible! | Article

Talk to most outsourcing buyers at the outset of their engagements and innovation is always on their wish list. Talk to them two or three years later, and the one thing they wish they had gotten is innovation. The lack of innovation in outsourcing seems to be one the few things they are unhappy about. […]

Assessing Cultural Fit during the RFP Process – “No-Divorce” Outsourcing | Article

Assessing Cultural Fit during the RFP Process – “No-Divorce” Outsourcing | Article

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, […]

Level of Trust Impacts Effectiveness of Outsourcing Communication | Article

Level of Trust Impacts Effectiveness of Outsourcing Communication | Article

Ask 10 buyers of outsourcing services for their keys to success in communicating with their service providers, and you’ll hear 10 different answers because, of course, the effectiveness of communication depends on the individuals involved. Some will also say it depends on whether they’re communicating about day-to-day operations, conflicts or opportunities. Others will comment that […]

Seven Examples of Resolving Financial Conflicts between Buyers and Providers of Outsourced Services | Article

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 […]

What Happens When the Outsourcing Business Case Stops Working? | Article

What Happens When the Outsourcing Business Case Stops Working? | Article

Organizations that turn to outsourcing to achieve their business objectives first develop a business case that includes such components as cost savings and avoidance objectives, business value benefits, and risk assessment of potential negative impacts. But what happens when the initial business case stops working because of unanticipated impacts? Both a Deloitte Consulting study and […]

100 Lessons Learned by Buyers of Outsourcing Services | White Paper

100 Lessons Learned by Buyers of Outsourcing Services | White Paper

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 […]

When is an SLA Not Necessary in an Outsourcing Relationship? | Article

When is an SLA Not Necessary in an Outsourcing Relationship? | Article

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 […]

Combating the “Hidden” Costs of Managing Outsourcing | Article

Combating the “Hidden” Costs of Managing Outsourcing | Article

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 […]

How Flexibility Helped a Groundbreaking Outsourcing Relationship Work | Article

How Flexibility Helped a Groundbreaking Outsourcing Relationship Work | Article

Flexibility started early. This was a ground-breaking contract in 1999. With no paradigm, it didn’t take long for the two to realize they made a mistake in scope. Flexibility allowed a 180-degree term. Eleven years later the relationship is going strong, thanks to its flexibility.

How Outsourcing Buyers Get Comfortable with Giving up Process Control | Article

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.

What Companies Need to Understand about Switching to Outcome-Based Approaches in Outsourcing | Article

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 […]

Predictions: Marketplace Turmoil and Change in How Outsourcing Relationships Work Over the Next Five Years | Article

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. […]

Do You Have What it Takes to Lead Transformational Change in Outsourcing? | Article

Do You Have What it Takes to Lead Transformational Change in Outsourcing? | Article

The economic crisis has unleashed a huge appetite for change. Visionary leaders are implementing transformational global sourcing initiatives at an accelerated pace. Linda Tuck Chapman presents a primer on outsourcing leadership.

Trends in Outsourced Product Development and Accelerated Time to Market | Article

Trends in Outsourced Product Development and Accelerated Time to Market | Article

A new, more strategic outsourcing model is necessary for speeding time to market yet also limiting the development cost of new products. It requires a different kind of thinking, communicating, and strategizing. Here’s how to leverage this new model for competitive advantage.

How to Engineer Successful Change Management in ITO | Article

How to Engineer Successful Change Management in ITO | Article

Why is IT change management so difficult? Martin Erb answers the question and provides insight into making change easier in ITO.

2009 Outsourcing Excellence Awards Data Reveal New Trends in Service Provider Qualities | Article

2009 Outsourcing Excellence Awards Data Reveal New Trends in Service Provider Qualities | Article

Outsourcing Center studied 42 outsourcing relationships to determine success factors based on characteristics the buyers liked about their service providers. The study revealed some significant findings around which both buyers and providers may want to shift some focus.