Cloud/BPaaS offerings are gaining a lot of attention in media, analyst, and advisor discussions. For the BPO providers, Business Process as a Service (BPaaS) seems all the more important because this can potentially drive the non-linear revenues combining tools + technologies + services.
It is a potential option but not a panacea to all issues or the only direction the industry will take. We need to make sure that we cut through the hype and stay focused on what works for the customers and build the capabilities around that.
In BPO scenarios, large clients typically approach vendors to outsource processes… Read the rest
The cost take-out initiative that companies started in 2008-09 continues as it was a multi-year program. The first tranche of savings came in from discounts from vendors. However, to get a sustainable cost advantage, transformation is essential. Without this, further cost take-out will be extremely difficult.
In addition, organizations are increasingly looking to achieve much more. Business and IT alignment, more meaningful reporting, better coordination between various departments, a reduction of the overheads associated with managing multiple vendors are some of the areas that have potential for significant improvement.
Organizations are willing to increase their discretionary spend but the expectation… Read the rest
A discouraging word in the outsourcing world is insourcing (or backsourcing). Although insourcing is a reality, it’s important not to view this kind of activity from a sky-is-falling perspective. While the “insourcing trend” described in the Goodbye Outsourcing article published today in cio.com rightfully took a journalistic view and didn’t necessarily intend to raise an alarm, attention to the article has spread like wildfire in just a few hours. (Even a hint of bad news always spreads quickly.) From my view, the article missed some important perspectives on insourcing.
First of all, some outsourcing deals are planned from the
Changing business dynamics do influence buyers’ BPO decisions; however cost reduction and process improvement goals always take center stage in the evaluation process. The major shift that has happened in the last couple of years is reduced emphasis on how to achieve cost savings to boost process performance and increased emphasis on how to meet business goals. One thing that keeps the buyer and the service provider on the edge today is ‘What’s new?’
Of late, IT has proved to be that element which has the ability of spinning something new, each time, to meet the needs of both buyers… Read the rest
For many fans, the Super Bowl came and went quickly. But for those of us who live in Arlington where the stadium is located, or in the neighboring cities of Dallas and Ft. Worth, the impact has lasted for the past couple of years and isn’t over yet.
The unexpected spirit-sapping ice storm we experienced during Super Bowl week and all the impacts because of it presents what I think is a classic specimen of what often happens in outsourcing relationships. Especially regarding service level agreements and contracts.
Just as in an outsourcing relationship, the parties involved had specific objectives… Read the rest
It’s a well-known fact that when the interests of parties in an outsourcing arrangement are not aligned – either because the original business assumptions changed over time or because they were never truly aligned in the first place – the deal is not mutually beneficial and one party won’t get the anticipated return on investment. However, most companies don’t understand how to structure and sustain a win-win deal.
Kate Vitasek’s book, Vested Outsourcing, describes the kind of relationship where all parties are truly vested in behaving in a manner that ensures they all look out for… Read the rest
If you’ve had the privilege of speaking with Kate Vitasek or listening to one of her presentations on Vested Outsourcing, you’ve heard the excitement in her voice. And rightfully so. Judging by reactions to her book, she’s on the cusp of changing the way outsourcing works.
Vitasek truly believes that “together” is better. Vested Outsourcing describes a win-win partnership – the kind of relationship where all parties are truly vested in behaving in a manner that ensures they all look out for each other’s best interests. It’s something that is rare today. Although many companies claim to… Read the rest
This is the third in a recurring column in Outsourcing Buzz Blog focusing on thought-leadership in outsourcing, as seen from the perspectives of two industry leaders with unique views into the workings of how outsourcing deals really get put together – or why they don’t. Insights come from sourcing advisors, Joe Vales and Kerry Ann Vales of Vales Consulting Group and Vales Consulting Lite.
I asked Joe and Kerry Ann this question: When is “more” not necessarily “better” when it comes to outsourcing? Here are their answers with real-world examples.
Among the larger corporate buyers and service providers, there is… Read the rest
For more than 10 years, it has been my privilege – and my fascination – to interview the world’s leadings service providers and analysts about their predictions as to how outsourcing will change in the coming year.
Years ago, the articles started with an overview of how accurate the prior year’s predictions turned out to be. Except for the growth predictions, the predictions were often not on the mark – except for two years where the industry observers predicted massive change – one due to the beginnings of BPO and the other was the year everyone talked about the impact… Read the rest
Four forces are now making work increasingly dynamic:
- Globalization: Work, of all forms, is migrating to its right location worldwide, allowing companies to leverage expertise anywhere and everywhere it resides.
- The Millennial Mindset: “Digital natives,” both as employees and customers, are creating new social and operating norms for companies, worldwide.
- Transparent Technology: Cloud computing, social networking, broadband, and mobility are enabling new business and technology models that improve operational flexibility and knowledge sharing.
- Virtualization: The virtualization of technology, business processes, and organizational structures is giving rise to the “anytime, anywhere” worker and causing organizations to rethink how they operate
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