Stop people on the street and the answer to that question is obvious. Of course!
Does this happen to you, my outsourcing colleagues? You go somewhere. Start talking to people. They ask what you do. You mention outsourcing. And then you have to don a bomb suit like the munitions squad wears to shield you from the ugly invective that follows. Specifically, they are furious that American companies are using outsourcing service providers who are then offshoring the work.
This is 2011. We’ve been offshoring for a decade. I am still amazed at the misunderstandings out there about the… Read the rest
I recently decided to get a puppy, and a poodle seemed like a good, “normal” choice. But I wanted something “new,” not your standard, run-of-the-mill poodle. So I did an online search on hybrid mixes, and some of the names were so appealing! Boxerdoodle (Boxer/Poodle,) Cockapoo (Cocker Spaniel/Poodle,) Jack-A-Poo (Jack Russell Terrier/Poodle,) Labradoodle (Labrador Retriever/Poodle,) and Poogle (Beagle/Poodle,) to name just a few. But after researching some of the breeds, I realized there was not only the obvious poodle overlap but also some subtle differences among them, and I needed to consider all characteristics before selecting the best option for… Read the rest
Ten years ago large multinational HRO buyers wanted to implement the HR solutions in their ERP platforms. They wanted technology for HR transactions and data. Now that the IT is as reliable as a dial tone, HR outsourcing providers can step up to the steeper challenge of today: “CXOs are asking the HR executives to play the role of strategic business partner,” says Maheedharan Thiagarajan, head of solution designs — HR services for Infosys. “Today, HR leaders need to do more than oversee HR transactions.”
How? Maheedharan says HR executives today must have “a laser focus on talent development and… Read the rest
As the outsourcing service provider landscape continues to shift through mergers and acquisitions, how can buyers construct their contracts to protect what they envision in the relationship despite a change in provider ownership? I spoke with two attorneys, James Nelson and William Russell in the New York office of Venable LLP, who frequently counsel clients on mergers and acquisitions and outsourcing matters, and asked them about insights and best practices to protect the interests of buyers of outsourced services.
Q: Sometimes when a service provider is acquired, some of the service delivery nuances that were in place with the prior… Read the rest
Don’t you just hate having to say “I should have paid more attention to that”? Here are four news items that caught my eye, as they bode strongly of trends that will change the outsourcing pulse.
Pay attention to these trends now and start planning for them in your future outsourcing strategies — or you’ll wnat to kick yourself later for not having done it sooner.
Trend #1. U.S. and UK banks are currently reducing the number of service providers they use, narrowing them down to two or three providers with whom they have a high level of… Read the rest
The long-term evolution of industries has long been studied. A small market grows when competitors fill niches and primary demand increases. Innovation sparks products. Services refinement and differentiation then occurs. More providers enter the market and then, as the growth cycle matures, scale and leverage become forces for consolidation. Now joining those ranks: the IT and business process outsourcing industry.
Three recent transactions – HP buys EDS, Dell buys Perot Systems, and Xerox purchases ACS – point to a future where “one-stop shopping” indeed becomes a reality in the outsourcing market.
With IBM Global Services leading this pack of “full-service” providers, what… Read the rest
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
News reports over the past two weeks highlight the movement of midsized Indian service providers, Firstsource Solutions, WNS Global Services, and Intelenet Global Services deeper into North America instead of Europe. Others are moving deeper into Latin America and China. China’s outsourcing providers are taking hold in North America. Over the years I’ve followed and written about outsourcing, I’ve pointed out that competition in the service provider landscape is good for the buyers.
But maybe not. Let’s look at the bigger picture.
When a competing provider enters a market, an incumbent provider’s customers are vulnerable. The “hunters” on the new… 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
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
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