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
It happens to me every spring. I have the privilege of observing two phenomena, and both are impressive. Like the natives and the tourists, I drive the highways of Texas to see the beautiful Texas Bluebonnets covering the pastures and hillsides and framing the highways. It’s an inspiring sight.
I also have the privilege of seeing the inner workings of some of the world’s most outstanding outsourcing relationships – the nominees and winners in Outsourcing Center’s Outsourcing Excellence Awards program. The 2010 winners were announced this week. It’s interesting to me that, every year, nearly 100 companies nominate their relationships for… Read the rest
Can diversity management in outsourcing make a difference in the potential return on investment (ROI)? I discussed this issue with Joe Santana, Senior Director of Diversity at Siemens USA. He has an extensive background in outsourcing, even prior to his diversity position with Siemens, providing him the opportunity to see from the inside and outside how effective diversity management can be an important factor in outsourcing relationships.
Please explain how diversity arises in outsourcing. Is it something more than having a workforce of multiple races and ethnicities?
JS: Yes. Add to that the recent increase in the number of… Read the rest
“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
I’ve blogged before about some of the lessons learned from mistakes made in outsourcing relationships that caused the parties to achieve less value than they anticipated. But as another blogger commented, last week, why not also learn from those who got it right, those who found keys to success. That’s definitely the most valuable approach. So this blog presents a perspective shared by those who got it right.
When I’ve asked hundreds of outsourcing buyers over the past decade to share a characteristic that is key to keeping their interests aligned over the long term, one of the… 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
I read a press release the other day about the Chicago area recently launching a public awareness campaign regarding how its 14 museums and zoos contribute to the city and to the state of Illinois. The headline alone caught my attention, as I assumed residents don’t need to be made aware of the benefits of having Picassos, giraffes, planetariums, and dinosaur bones in their midst. Fun, education, culture, even inspiration came to mind as clear benefits.
But in reading further, I learned the zoos and museums also result in more than 26,000 jobs, tax revenue, and about $1 billion annually… Read the rest
Recent Comments
“Great interview with a top professional! Shared. Mel, alldayPA ”
“I like your orchestra analogy. I would like to start a discussion on knowledge transfer as a focus group for my ...”
“I am a university student studying alliance collaborations that involve sourcing of work internationally and would like to start a ...”
“Yes I totally agree with you price benchmark every year would be a great idea to keep up. ”
“nice share liked this article ”
“definitely cloud is there and its there to stay and also providing so many opportunities in it outsourcing ”
“Cloud computing is surely the new way of outsourcing. With IAAS, its takes the burden off the small and middle ...”
“I don't even understand how I stopped up right here, however I assumed this publish used to be great. I ...”