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
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
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
Welcome to the first edition of my Outsourcing Pulse List. What is it? A periodic list of observations about what outsourcing industry companies and individuals do or say. The Pulse List will feature those that miss a beat, some that never miss a beat, those with new beats that radiate with wide ramifications, and sudden fluctuations. Curious, out-of-whack ideas, items of concern, and also insightful statements – that’s some of what you’ll find in the Pulse List. You may even find yourself or your company on the list.
Since this is the list’s debut, we’ll start with two lists –… Read the rest
Everyone’s doing it. Touting the numbers. Researchers get paid to find the percentages and totals, and writers and analysts get paid to put a spin on them. But I think that research studies and advice about the outsourcing market often miss the boat.
For evidence, look no further than a report yesterday (written by CRM Management editors) about the findings in Op2i’s recent Outsourcing 2010 survey. Here’s their anemic conclusion from their data:
While interest in outsourcing has increased, focus has yet again shifted to cost reduction, with suppliers pressured to deliver more for less – the U turn
“Honesty is a good thing, but it is not profitable to its possessor.”
Outsourcing wasn’t a business strategy when Don Marquis, an American newspaper columnist and short story writer (1878-1937) wrote that line. But the attitude he described is present in many of today’s outsourcing relationships.
Over more than a decade, as I’ve interviewed hundreds of executives in outsourcing relationships, I always ask about their keys to success. You wouldn’t believe how many times a buyer says “mutual honest communication.” Not very many times. It’s not because it isn’t a key to success; rather, it’s because it seldom happens. And… Read the rest
A friend of mine recently told me of the change that technology has made in her marriage. Her husband is deaf. For more than 50 years, he’s heard nothing but the very loudest noises and has to depend on reading lips to follow conversations. He called her one day at work and exclaimed, “Silverware makes noise! And so do the keys on the computer keyboard!”
With new technology in a hearing device, he now can hear sounds that he didn’t even know existed. He suddenly realized why his wife always griped at him to not make so much noise when… Read the rest
There’s a growing recognition that an outsourcing initiative is a journey. Executives of some of the world’s leading companies have said that to me when I interviewed them about the successes and challenges in their outsourcing arrangements.
A question I’ve asked when interviewing literally hundreds of outsourcing execs is what they would do differently the second time around if they had an opportunity to start over (from the initial negotiation phase).
It’s hard to believe, but a few (very few) say they wouldn’t do anything differently and that everything went smoothly and according to plan. Many reply that they actually… Read the rest
I’m part of a minority group. Despite the media flooding us with terrible tales and significant studies about outsourcing failures, I focus on the fact that the “pie” of the outsourcing market has a very large piece that represents highly successful relationships.
However, any relationship, whether personal or business, is bound to encounter disappointments. In my interviews of hundreds of buyers and suppliers of outsourcing services, I’ve asked about those disappointments. One that stands out to me is occurring more frequently these days as companies take on more globalization efforts.
Here’s a real-world example. In the initial contract, the buyer… Read the rest
Saturday night, June 6, 2009. It was the long-awaited and much-hyped George Strait concert at the grand opening of the Cowboys Stadium, the massive piece of architecture that is the new home for football’s famed Dallas Cowboys. More than 60,000 fans were expected to attend, and for months before the concert, Internet sites offered maps with the best routes to get to and from the stadium from any Dallas/Fort Worth Zip Codes.
The restaurants, clubs and other businesses in the Arlington, Texas, entertainment district where the stadium stands tall had extra staff on hand, ready for the anticipated… Read the rest
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