Research & Insight

Governance

Ten Pitfalls in Outsourcing Transitions

Outsourcing Center, Kathleen Goolsby, Senior Writer

There’s no shortage of methodologies and advisories on best practices and risk mitigation strategies for the transition phase of outsourcing relationships. Even so, many buyers encounter situations they didn’t foresee when structuring their arrangement, which cause costs to rise and delay time to value. Outsourcing Center studied these types of situations by surveying companies nominated …

Assessing Cultural Fit during the RFP Process – "No-Divorce" Outsourcing

Linda Tuck Chapman, President, ONTALA Performance Solutions Ltd.

A good cultural fit is one of the most important hallmarks between a successful and unsuccessful outsourcing relationship. Cultural fit assessment during the RFP process 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 …

Level of Trust Impacts Effectiveness of Outsourcing Communication

Outsourcing Center, Kathleen Goolsby, Senior Writer

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 outsourcing 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 …

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

Outsourcing Center, Kathleen Goolsby, Senior Writer

At the point where outsourcing service providers or their customers have financial conflicts 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 …

Action Plans for Managing Attrition in an Outsourcing Service Provider’s Resources

Outsourcing Center, Kathleen Goolsby, Senior Writer

Change sometimes brings unintended consequences. When outsourcing relationships several years ago took on the characteristic of delivering services from one or more offshore locations, an unintended consequence was “talent wars” and attrition. Not managing attrition among a provider’s ranks leads to unsatisfactory service delivery and higher costs. How can the parties manage this dilemma? Should …

What Happens When the Outsourcing Business Case Stops Working?

Outsourcing Center, Kathleen Goolsby, Senior Writer

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 …

Procurement Outsourcing Is Hot — Even for Hybrid Strategies

Linda Tuck Chapman, President, ONTALA Performance Solutions Ltd.

Procurement outsourcing is the least understood but fastest-growing outsourcing story. The market is heating up and there is a lot to learn. What should you outsource? What should you retain — and why? If you decide to outsource, what should you do internally before outsourcing? How can you implement a hybrid strategy in your procurement …

Eight Biggest Areas of Risk for Buyers of Outsourcing Services

Outsourcing Center, Kathleen Goolsby, Senior Writer

New delivery models, new pricing models, service providers’ new marketing strategies, moving up the value chain to intellectual arbitrage, new technologies, real-time customer interaction, globalization, and new standards and regulations – these factors set the stage for risks for buyers of outsourcing services in the next two to five years. (Read Forces of Change Shaping …

Outsourcing Experts Discuss New Flexible Pricing Models

Outsourcing Center, Kathleen Goolsby, Senior Writer

Outsourcing Center assembled a panel of industry experts to discuss the changes in outsourcing contracts and pricing models over the next two to five years. Their insights reveal buyers and providers will approach outsourcing initiatives differently than in the past. Q. Outsourcing pricing models and contract vehicles have evolved over the past few years. How …

Decision-Making Insights for Companies Outsourcing HR Functions

Outsourcing Center, Kathleen Goolsby, Senior Writer

Outsourcing HR went through a shake-out over the past two years due to the continual issues around scope and other challenges that buyers and service providers encountered over the past decade. The dust has settled from the revamping efforts, but there are new challenges on the horizon. Here’s what your company needs to know for …

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