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
The middle managers of any established business have the responsibility to operate the core of the business, and hold a wealth of knowledge about what works well versus areas for improvement. When sourcing becomes an alternative for any part of the business owned by middle managers, it is imperative to involve them and make use of their deep understanding of the operating requirements.
Engaging middle managers in the details surrounding the sourcing process will:
- Enlist their vast operational knowledge
- Convey your value and trust in them
- Keep them well informed so they can communicate appropriately to the broader
In recent work with a client and major IT sourcing provider, I discovered how important organization really is! Getting organized to begin a transition with multiple towers is critical to your success, and perhaps more importantly, to reducing transition management efforts.
In this particular case, it was clear the transition planning was aligned by tower rather than for an overall transition effort. The provider, with good intentions, created a transition reporting structure with leads for each tower. The leads in turn created their transition plan, in some cases a Word document rather than a MS Project plan. This would no doubt add challenges to… 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
Switching service providers is nearly always a situation fraught with challenges, so selecting a new provider that has an effective transition methodology is crucial. Avantica Technologies, a service provider in Costa Rica, is known not only for its software development expertise but also for the way it builds collaborative relationships with its clients and for its strategy for ensuring cultural fit. I talked with Luis Enrique Corrales, Avantica’s Regional Sales Director, about these issues.
Q: How do you help your clients get off to a good start with your company when transitioning out of a difficult situation where an existing… Read the rest
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 I of a three-part roundtable discussion on important perspectives on these popular business models. Part I roundtable participants are Krist Davood, Group CIO of Schiavello; Joseph Soalheira, Advisory Board Member of the Shared Services & Outsourcing Network (SSON) global community; and Peter Barta, CEO of Everest Group Asia Pacific. All three are among many industry experts presenting at the upcoming 13th Annual Australasian Shared Services… Read the rest
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
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
I read a press release the other day about the Chicago area recently launching a public awareness campaign regarding how its 14 museums and zoos contribute to the city and to the state of Illinois. The headline alone caught my attention, as I assumed residents don’t need to be made aware of the benefits of having Picassos, giraffes, planetariums, and dinosaur bones in their midst. Fun, education, culture, even inspiration came to mind as clear benefits.
But in reading further, I learned the zoos and museums also result in more than 26,000 jobs, tax revenue, and about $1 billion annually… Read the rest
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