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
Two words: cloud and SaaS. They’re a common thread in discussions for outsourcing plans these days because the advantages these technology-access models present to buyers are truly significant. Both are increasingly marketed as outsourced services. But are they really outsourcing? If so, are these models causing companies to overlook crucial aspects of outsourcing arrangements? Or is outsourcing morphing to simply “sourcing” – commoditized services that really don’t involve a relationship factor, governance frameworks, and other complexities?
In other words, is the notion of what constitutes “outsourcing” changing? To find the answer to this question, I invited four experts to a… Read the rest
Trust is something that really trips people up in outsourcing relationships. In my talks with hundreds of executives involved in outsourcing over the last decade, I’m intrigued by the fact that when I ask executives about the trust level in their relationship, some can’t determine if trust is there, some say they thought trust was there but then something happened that indicated otherwise, and most who say trust is key to their success can’t describe how to build or sustain it.
Outsourcing has an inherent challenge that makes trust become crucial to achieving successful outcomes. We’ve developed all sorts of… 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 ...”