The due-diligence task of talking to a potential service provider’s existing clients for references on the provider’s capabilities is part of the first line of defense in trying to structure an outsourcing relationship for success.
But it’s somewhat like talking to the poison taster for a king – clients giving references are those who tasted the provider’s services and lived on to tell the tale.
Sure, finding out if the provider has successful past experience with a deal of the scope and complexity of the deal under consideration is of vital importance. Absolutely. But wouldn’t the potential buyer also benefit… Read the rest
Two outsourcing news items grabbed my attention for today’s Pulse list — one deserving of a thumb’s up, and one a thumbs-down rating.
Thumbs Up
Congratulations to Motif, a global BPO service provider now celebrating its tenth anniversary as an outsourcing firm coinciding with the inauguration of its new delivery center in Costa Rica (adding to its global footprint in the USA, the Philippines, India, Singapore, and Australia).
Thumbs Down
An Ecademy blog focuses on what it calls the “Seven Deadly Sins of Outsourcing.” This blogger makes the Outsourcing Pulse List for using a title focused on sensationalism – something not helpful to outsourcing,… Read the rest
Every now and then I find out something about outsourcing that really surprises me. That’s what happened recently when I learned the status of an outsourcing relationship I’ve followed for several years. I bet the service provider in this relationship was just as surprised as I when the deal was turned on its head.
The buyer outsourced its total IT infrastructure and application development and maintenance to a leading service provider more than a decade ago. They renewed the contract early, and they added scope. The provider achieved the targeted cost savings and productivity improvements. When I’ve talked with the… Read the rest
I recently watched a video of National Geographic photographer Brian Skerry’s efforts to document what has been happening to undersea creatures over the past several years because of people overfishing the oceans. This and other actions we’ve taken that are harmful to marine life have led to a global fish crisis where many species are now critically endangered; some species have lost 90 percent of their stock as a consequence of our actions.
Ninety percent is a really high number – so is the number of outsourcing relationships that fail these days even after decades of learnings about outsourcing’s keys… Read the rest
Businesses are focusing on how to sustain themselves while positioning their enterprise for future growth. Okay, now go back and read that sentence again. To whom does this refer?
It’s a comment often made in the context of drivers for deciding to outsource. But many buyers forget that this focus applies as much to service providers as buyers.
I spoke a while back with a buyer that had outsourced two functions in its finance and accounting process. The selected service provider had five other customers before this particular deal was signed. The buyer listed the following items in its list… Read the rest
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
“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
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 just read an article published this week, titled “Spreading the word on outsourcing.” What’s interesting about it is that, although it starts out advising companies about the benefits of outsourcing their non-core processes, it switches to a discussion about outsourcing failures. The writer cites a recent study that found nearly 70 percent of 300 survey respondents (apparently in Ireland) said their outsourcing deals “suffered from poor vendor selection and lack of service levels.”
What grabbed my attention even more was a letter from a New Albany, Indiana, resident commenting on the poor quality of services, the subsequent… Read the rest
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