The Kind of Outsourcing that Takes You by Surprise

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

Tip for Executives in How to Ensure their Return on Investment in Outsourcing

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

Outsourcing Belly-Up

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

Buzz Blog’s Outsourcing Pulse List – May 19, 2010

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

So You Want to do Some Outsourcing

Everyone’s doing it. Touting the numbers. Researchers get paid to find the percentages and totals, and writers and analysts get paid to put a spin on them.  But I think that research studies and advice about the outsourcing market often miss the boat.  

For evidence, look no further than a report yesterday (written by CRM Management editors) about the findings in Op2i’s recent Outsourcing 2010 survey.  Here’s their anemic conclusion from their data: 

While interest in outsourcing has increased, focus has yet again shifted to cost reduction, with suppliers pressured to deliver more for less – the U turn

Read the rest

Perspectives on Midmarket Outsourcing of IT Infrastructure – Q&A with Brazil’s CPM Braxis

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

Importance of Managing Diversity in an Outsourcing Relationship – Interview of Joe Santana, Sr. Director of Diversity, Siemens USA

Can diversity management in outsourcing make a difference in the potential return on investment (ROI)? I discussed this issue with Joe Santana, Senior Director of Diversity at Siemens USA. He has an extensive background in outsourcing, even prior to his diversity position with Siemens, providing him the opportunity to see from the inside and outside how effective diversity management can be an important factor in outsourcing relationships.

Please explain how diversity arises in outsourcing. Is it something more than having a workforce of multiple races and ethnicities?

JS: Yes. Add to that the recent increase in the number of… Read the rest

Part II – Shared Services vs. Outsourcing: A Roundtable Discussion

Shared services centers and outsourcing are both hot with today’s businesses looking to cut costs and increase efficiencies as much as possible. What are the differences between the two models? This is Part II of a three-part roundtable discussion on important perspectives on these popular business models. Part II roundtable participants are Krist Davood, Group CIO of Schiavello; Joseph Soalheira, Advisory Board Member of the Shared Services & Outsourcing Network (SSON) global community; Asheesh Mehra, Head of Sales, Infosys BPO Asia Pacific; and Peter Barta, CEO of Everest Group Asia Pacific. All four are among many industry experts presenting atRead the rest

Leadership and Managing through Outsourcing – Interview of Salil Godika, Chief Strategy Officer, MindTree

MindTree was ranked among the fastest-growing technologies companies on the Deloitte Technology Fast 500 Asia Pacific 2009, recognizing its “customer success through innovation solutions and happy people.” In addition, MindTree’s Executive Chairman and co-founder, Ashok Soota, received the Gold Peacock Award for Technology Leadership from the Institute of Directors. This interview of Salil Godika, MindTree’s Chief Strategy Officer, presents insights on aspects of innovation, leadership, and change management in managing an outsourcing relationship.

In interviewing buyers of outsourcing services, I have spoken with many who claim that their service provider did not achieve the level of innovation the buyer anticipated.Read the rest

Is the Cloud Changing the Notion of What Constitutes Outsourcing? – A Roundtable Blog with Marc Schwarz, Ken Stephens, Jim Stikeleather, and Tom Tunstall

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

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