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
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
Like all journalists, my inbox fills daily with press releases. Here’s one that caught my eye this week and – believe it or not – it made me think about outsourcing.
Do you love gourmet, country style bacon? Do you love premium roast gourmet coffee? Do you love the semi-sweet, sensuously succulent flavor of maple? Then something tells me that you are going to absolutely love Boss Hog’s Maple Bacon Coffee!
The press release went on to describe the product in these terms: “taken us by surprise,” “totally blown our mind,” “actually a pleasure,” “top notch,” award… Read the rest
Over the past few months, the media has brought attention to the growth of outsourced call center services in the Philippines instead of India. I spoke with Steve Barker, General Manager – AsiaPac at Sitel – which provides call center services from India and the Philippines as well as 10 other geographies – to get his take on issues associated with the growth as well as other trends in call center outsourcing.
Q: A USA Today article on January 10, 2011, says the Philippines now employs 350,000 people in outsourced call center jobs compared with 330,000 in India. And according… Read the rest
We are very sad to learn that Joe Vales, a dear colleague and an outsourcing industry giant and pioneer, passed away on January 12.
We will miss him. But his undeniable and valuable impact on the outsourcing industry will live on, and many buyers and providers of outsourcing services will benefit greatly from his work to make outsourcing more effective.
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
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