Given the maturation of the outsourcing industry, it’s likely that several of your transition team members have already gone through at least one transition. And that they’ve done so – albeit on different teams, even at different companies – can be highly advantageous to your initiative. They fully understand the complex and grueling nature of a transition, know many of the pitfalls you can encounter during the journey, and appreciate the criticality of finely-tuned plans and processes.
However, the fact that they have prior transition experience can, in and of itself, also result in unexpected challenges. Does this sound counterintuitive?… Read the rest
I remember 2003 and 2004 because that’s when most companies I interviewed about outsourcing arrangements started talking in earnest about “taking a partnering approach” to get more value from outsourcing. Since 2006, many have talked about their successes in partnering. But here’s the reality; they were only partial successes.
Partnering helped them get through the transition phase easier and helped them try to resolve challenges in a win-win manner; but when the business situation changed and thus impacted the buyer’s savings or the service provider’s margins, most of them still hit a wall despite the partnering approach.
There were foundational
Here’s a snapshot of today’s communications:
- Words are abbreviated into scant “code” in text messages
- Corporate branding messages are squished down to 140 characters on Twitter
- Paragraphs or even entire pages in articles and reports are shortened to bullet lists
Funny how this sound-byte way of communicating cajoles us into thinking we can similarly truncate our behaviors yet still be successful in the relationships in our lives.
Reality says that’s not the case. There are all sorts of entangling knots within relationships, and the potential for damage is high when we don’t slow down and take the time – read… Read the rest
The BPO world has come a very long way over the past decade! We have seen significant change in the market, both from buyer and supplier perspectives.
Buyer requirements have evolved across the board to enhance the range of processes that they outsource and the way they structure the engagements and what they demand from a BPO partner.
Providers have evolved to keep pace with buyer interests, and in many ways have also influenced the same by creating and demonstrating capabilities that have strongly contributed to the evolution of the buyers’ thoughts.
Overall, from my perspective here is what that… Read the rest
Over more than a decade, I’ve asked hundreds of buyers of outsourcing services which means of communication proved more effective in successfully meeting their objectives: ad hoc, informal communications or formal governance meetings.
By far, the majority stated the governance meetings were absolutely essential. However, most also stated that the ad hoc, informal communications were more effective at managing issues more quickly.
When I asked buyers which method of communication was more effective in managing the relationship itself, there was a greater variance in opinion. I was reminded of this recently when I watched a program about hiking the… Read the rest
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
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
Since outsourcing is a business model whose success depends on the relationship itself, how important is it that the top execs of both the client and service provider companies develop personal relationships with each other? Does it really help the outcome – the achievement of objectives – in any way?
Let me first put come context around “develop personal relationships with each other.” I’m not referring to the activities (although they are crucial for success) companies undertake where there is an offshore service delivery component and both parties need to visit each other’s countries and learn more about each other’s… Read the rest
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
Size makes a difference. Midsized businesses have different concerns surrounding IT infrastructure management than large enterprises. Among other IT solutions, CPM Braxis, a leading IT service provider in Brazil, provides infrastructure services for enterprise and midsized companies. I interviewed the firm’s Global Clients Director, Andre Maximiano, about issues in midmarket outsourcing.
What are some infrastructure management issues that midsized companies face?
AM: Due to budget restrictions and growth pains, midsized companies often have to improve performance of one department at the expense of the overall business. They also are often forced to take actions that don’t optimize performance because… Read the rest
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