Every now and then I find out something about outsourcing that really surprises me. That’s what happened recently when I learned the status of an outsourcing relationship I’ve followed for several years. I bet the service provider in this relationship was just as surprised as I when the deal was turned on its head.
The buyer outsourced its total IT infrastructure and application development and maintenance to a leading service provider more than a decade ago. They renewed the contract early, and they added scope. The provider achieved the targeted cost savings and productivity improvements. When I’ve talked with the… Read the rest
I recently switched to a different dentist – but not because I didn’t like the prior one or the dental care he gave me, nor did the switching have anything to do with the prices he charged. I left because of the hygienist and the receptionist in his office. It’s a situation very similar to what many buyers experience in outsourcing relationships.
I have some non-dental health issues that affect my dental treatment and require some special considerations at the dentist office. These issues and necessary workarounds prevent a dentist and his staff from treating me the same way they… Read the rest
On my list of what’s been pulsating through the outsourcing world recently are a bold move and some notable quotables. There’s also some news that begs the question: what’s wrong with this picture?
Bold Move
For the past two quarters, MphasiS, a leading Indian ITO and BPO service provider and subsidiary of HP, has been deducting 5 – 20 percent from its employees’ salaries and giving it back as “variable pay.” Employees receive the variable pay quarterly, based on performance of the employee as well as the company. It’s improving the cash flow but also notably reducing attrition.
What’s… Read the rest
I read this week an article in eWeek that pointed to a labor problem that impacts outsourcing. The gist of it says:
While reluctant to join labor movements in the past, information workers may be fed up with offshore outsourcing and restrictive contracting rules, analysts and unions say. Is the IT workforce ripe for union membership? . . . Growing IT pessimism and the increasing strength of offshore outsourcing are fueling new efforts to attract information workers, insiders say. There may be growing support among the workforce for such union representation. A union-backed survey revealed “increasing pessimism” among United
Frost & Sullivan’s annual Asia Pacific Information and Communications Technology (ICT) Awards recognized Genpact as the 2010 Business Process Outsourcing Service Provider of the Year.
The award recognizes companies that rise above the competition, demonstrating outstanding performance in the Asia-Pacific region.
ACS, A Xerox Company, plans to consolidate its EMEA data centers into a smaller number of modular data centers. To minimize carbon emissions to meet the UK’s CRC Energy Efficiency Scheme legislative requirements, and to deliver IT services in the most environmentally sustainable way, the data center will utilize nylte Software’s Data Centre Infrastructure Management (DCIM) solution.
I recently watched a video of National Geographic photographer Brian Skerry’s efforts to document what has been happening to undersea creatures over the past several years because of people overfishing the oceans. This and other actions we’ve taken that are harmful to marine life have led to a global fish crisis where many species are now critically endangered; some species have lost 90 percent of their stock as a consequence of our actions.
Ninety percent is a really high number – so is the number of outsourcing relationships that fail these days even after decades of learnings about outsourcing’s keys… Read the rest
CPA Global has just released findings from its second annual State of the IP Industry Survey. Respondents were more positive about the evolution of IP practices and processes – such as rights renewals, IP searches and data verification – over the past 12 months, identifying the credit crunch as the impetus the industry needed to develop more streamlined alternatives to old ways of working.
More than half of surveyed in-house IP departments and over one-third of IP law firms stated the Asia-Pacific region is the most challenging to deal with and that governments need to take greater action to enforce rights and prevent piracy. China was cited… Read the rest
Jordan just launched a new outsourcing program –” Turn to Jordan…your Smart Shore Destination” – predicted to create 3,000-10,000 new outsourcing jobs by November 2011.
The country also estimates that the initiative will grow its outsourcing business to reach $168 billion by the end of 2012, despte competition from Egypt and UAE. Outsourcing in the Middle East is expected to increase by 20-50 percent.
Businesses are focusing on how to sustain themselves while positioning their enterprise for future growth. Okay, now go back and read that sentence again. To whom does this refer?
It’s a comment often made in the context of drivers for deciding to outsource. But many buyers forget that this focus applies as much to service providers as buyers.
I spoke a while back with a buyer that had outsourced two functions in its finance and accounting process. The selected service provider had five other customers before this particular deal was signed. The buyer listed the following items in its list… Read the rest
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