Dear Expert: Question: Can you use a balanced scorecard in an outsourcing deal? Answer: Leonard White, Everest Group.
Monthly Archives: March, 2001
An outsourcing evaluation should follow a disciplined, managerial approach from planning through negotiation and implementation, to ongoing management of the relationship.
PinkElephant is a Dutch ASP headquartered at Zoetermeer. The ASP is a PinkRoccade nv company, one of the most successful traditional IT outsourcing vendors in Holland. And that’s exactly how the ASP market is developing in Europe. The quick starting, independent American startup is the slow moving elephant in Europe, according to Leon Fock, business unit director. PinkRoccade nv was formed in 1950 as the Mechanical Administration, which was part of the central government of the Netherlands. Every 20 years the IT outsourcing vendor has reinvented itself. In the 1970s the department morphed into the Government Computer Center. In 1990 the department became a public limited liability company as part of a privatization move.
What skills must be present in the executive team that manages the ongoing outsourcing relationship? | Article
Question: What skills must be present in the executive team that manages the ongoing outsourcing relationship? Answer: from Wendell Jones, Outsourcing Center Analyst
Government Competes with Private Sector on Level Playing Field Today, as local and state governments struggle to provide services to an ever-growing, ever-demanding public despite inadequate financial resources, outsourcing and privatization of government functions is becoming more and more of an issue. Taxpayers expect their governments to deliver products and services commensurate — at least in their own minds — with what they pay in taxes. In the Commonwealth of Virginia, a unique organization works to ensure its citizens get the most for their tax dollars. The 15-person Commonwealth Competition Council, created by the Virginia Legislature as part of the Virginia Competition Act of 1995, is proving that there is a better and less costly way to serve its citizens. The Competition Council, whose members hail from government, academia and the private sector, was mandated to research and recommend ways in which state government can reduce the size and scope of its activity, as well as investigate h
For government agencies across the United States, the ability to deliver services to their citizenry is being sorely taxed (no pun intended). Budgets are being strained beyond limit. Quality — and quantity — of services is deteriorating. And the varieties of the prevailing political climate can wreak havoc on long-range planning and consistent and coordinated operational systems. Add to this the fact that many government agencies’ entire existing infrastructure for delivering services is suffering from such maladies as outdated technology, a stagnant work force and the typical bureaucratic red tape that is government’s calling card, and you have a recipe for guaranteed underachievement.
Italy — its name brings to mind the pungent parmesan and garlic odors, magnificent golden treasures in the cathedrals and palaces, crowded canals of Venice and mysteries of Pompeii. The nation holds many charms for tourists. Part of the culture of this historic land is endurance and pride. Those characteristics carry over into the business arena. There are people who created their businesses from nothing, and they have worked all their lives in those businesses. They are not open to change, says Stefano Valentini, an outsourcing consultant in Rome. He explains that Italy has a lot of small (under 50 employees) and medium (under 250) companies and that 80% of production comes from these companies. Although many executives even in the United States are just coming to grips with it, the fact is that a company can’t be good at doing everything. An attitude of mistrust and not wanting to let go of control of business processes only results in being hamstrung — as crippling as cutting the tendons at the ham
People are doing wireless today without having thought about it first, and now they have some real problems, states John Stehman, principal analyst with the Robert Frances Group. They can’t even support all the devices they have out there. They have five to seven different devices and the help desk doesn’t even know what some of them are. Wireless technologies are still experimental, and Thomas Tunstall, Ph.D. with KPMG Consulting, believes it’s difficult to know which applications will catch on and which providers will be successful. Wireless technology is changing, coverage is changing, and providers and pricing are changing. Users are trying to decide if applications will have value. To enter this world requires a strategy built on flexibility and minimizing risk; both are best accomplished by outsourcing.
Wireless scares people, says Adam Braunstein, senior research analyst with the Robert Frances Group. The concept that you can get anything anywhere is easy to understand and sounds great, and what company wouldn’t want to give those capabilities to its staff and customers where appropriate? The problem is that the application is extremely difficult. There are several warring technologies out there, Braunstein explains, and the wireless carriers are having huge difficulties. Financial institutions and the healthcare industry are the early adopters of wireless technology. It’s also an ideal solution for a mobile sales force, traveling executives, field technicians, logistics and other processes. The media has touted the enormous benefits for companies to adopt this technology as an extension of access to the Internet while, at the same time, making a lot of noise about the immaturity of the technology and its failures in addressing business applications and user needs.
Difficult business problems require solutions that are based on sound reasonings. The Internet and new economy have so drastically changed the way business is done that today’s top execs must focus on how to change their companies. Change is necessary as technology and markets evolve, despite whether a company is competing successfully or losing market share. Long-range plans keep getting shorter and shorter, and the need for risk management in such an environment is increasingly recognized as a competency. Most organizations now are a hybrid of some internal departments or divisions and some alliances with outsourcers for various business processes. Why do so many chief executive officers (CEOs) and chief information officers (CIOs) turn to outsourcing as a strategy to achieve their business objectives? Upon what reasoning do they base these decisions? Adam Braunstein, senior research analyst with the Robert Frances Group, whose clients are the top echelon of Fortune…