Outsourcing Buzz Blog » Outsourcing Failure

The Ultimate Outsourcing Benchmarking Source?

Kathleen Goolsby, Senior Writer, Outsourcing Center — Tue, 03 May 2011 20:13:42 +0000

Almost as fast as a wink – that’s how quickly word spreads on Twitter. And everyone’s doing it – you’d have to have been under a rock, so to speak, not to know of the tweets covering the Royal Wedding (2.7 million social media mentions) and of the even bigger stats on tweets about the death of Osama bin Laden.

But did you know that there’s a hedge fund now using tweets to predict market movement? Research by two universities says the emotions expressed about companies tracked through tweets will predict market movements up… Read the rest

Influencing Success in Outsourcing

Kathleen Goolsby, Senior Writer, Outsourcing Center — Mon, 28 Feb 2011 19:33:17 +0000

People often tout Pareto’s Principle – better known as the 80/20 Rule, meaning 20% of something is always responsible for 80% of the results. It’s like a thump to remind us to focus on the 20% that really matters. But what is that 20% when it comes to outsourcing and where in the outsourcing journey does the 20% occur?

What do you think? Before you answer, consider the following.

Every year, many Americans hike the Appalachian Trail, 2,000 miles through 14 states on the US East Coast, from Georgia in the South to Maine at the northern tip. The most… Read the rest

Perspective on Whether Insourcing is Becoming a Trend in Outsourcing

Kathleen Goolsby, Senior Writer, Outsourcing Center — Thu, 17 Feb 2011 23:25:01 +0000

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

… Read the rest

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Outsourcing’s Super Bowl Test

Kathleen Goolsby, Senior Writer, Outsourcing Center — Mon, 07 Feb 2011 22:07:41 +0000

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

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More Can be Less When it Comes to Outsourcing

Kathleen Goolsby, Senior Writer, Outsourcing Center — Thu, 06 Jan 2011 18:00:06 +0000

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

The Risks of Overpromising in Outsourcing

Kathleen Goolsby, Senior Writer, Outsourcing Center — Wed, 29 Sep 2010 06:00:00 +0000

This is the second blog 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 – and the results of those maneuvers. (See “Never Underestimate the Value of PEOPLE When it Comes to Outsourcing,” the first blog in this column.)

Insights in this recurring column come from sourcing advisors, Joe Vales and Kerry Ann Vales of Vales Consulting Group and Vales Consulting Lite.

This week I asked Joe and Kerry Ann… Read the rest

Two Reasons to Question the Value of Outsourcing Providers’ Client References

Kathleen Goolsby, Senior Writer, Outsourcing Center — Wed, 01 Sep 2010 09:09:13 +0000

The due-diligence task of talking to a potential service provider’s existing clients for references on the provider’s capabilities is part of the first line of defense in trying to structure an outsourcing relationship for success.

But it’s somewhat like talking to the poison taster for a king – clients giving references are those who tasted the provider’s services and lived on to tell the tale.

Sure, finding out if the provider has successful past experience with a deal of the scope and complexity of the deal under consideration is of vital importance. Absolutely. But wouldn’t the potential buyer also benefit… Read the rest

Are You Protecting Your Outsourcing Relationship?

Kathleen Goolsby, Senior Writer, Outsourcing Center — Wed, 25 Aug 2010 04:17:08 +0000

Realistically, how long can an outsourcing service provider and its customer go without having a conflict? Though people often compare an outsourcing relationship to a marriage, it’s not the same when it comes to conflicts. For instance, in a marriage where the couple has conflicts over how to manage their money, they can open separate bank accounts. In an outsourcing relationship, the decisions each party makes – or wants to make – impact the other’s wallet; so conflicts are inevitable.

The way the parties handle conflicts can decide a relationship’s fate. Sure, they establish the basics for this at the… Read the rest

Buzz Blog’s Outsourcing Pulse List – August 16, 2010

Kathleen Goolsby, Senior Writer, Outsourcing Center — Mon, 16 Aug 2010 20:18:10 +0000

Two outsourcing news items grabbed my attention for today’s Pulse list — one deserving of a thumb’s up, and one a thumbs-down rating.

Thumbs Up

Congratulations to Motif, a global BPO service provider now celebrating its tenth anniversary as an outsourcing firm coinciding with the inauguration of its new delivery center in Costa Rica (adding to its global footprint in the USA, the Philippines, India, Singapore, and Australia).

Thumbs Down

An Ecademy blog focuses on what it calls the “Seven Deadly Sins of Outsourcing.” This blogger makes the Outsourcing Pulse List for using a title focused on sensationalism – something not helpful to outsourcing,… Read the rest

How an Outsourcing Service Provider Lost Business

Kathleen Goolsby, Senior Writer, Outsourcing Center — Wed, 30 Jun 2010 07:38:52 +0000

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