| tsourcing = Global Momentum | | | | case-by-case basis should be harnessed to pay for |
| The global business landscape has changed | | | | business services delivered. Inclusion of regular mutual |
| dramatically in the last couple of years thanks to | | | | rewards for both your organization and that of the |
| growth of outsourcing. Outsourcing has gained | | | | service provider boosts people motivation at all levels. |
| strength as a management strategy for sustaining | | | | • Service Excellence. All SLAs must be tied to |
| global growth as well competitive advantage to | | | | process excellence or customer delight will not happen. |
| overcome the challenges of ever growing business | | | | Project milestones, “go-live” events, and |
| complexities. So whether it’s a Fortune 100 | | | | pilots are tangible means of tracking process maturity |
| transnationals or even a small enterprise, everyone is | | | | & excellence. Other measures include customer |
| looking at outsourcing as a key growth engine thanks | | | | satisfaction, productivity, Six Sigma (defects), work |
| to the increased levels of process specialization and | | | | elimination, etc. |
| sophistication. Domain specialization and not just | | | | • Outsourcing Management. The internal |
| economies of scale are key to the success of any | | | | governance team should have a transformation or |
| outsourcing relationship. Outsourcing has been | | | | innovation owner, sufficient staff & budget to help |
| recognized to save companies and not just costs. | | | | drive innovation and must hold the provider |
| Evolving Outsourcing Relationships | | | | accountable for innovation. Reassure and demonstrate |
| Organisations now regard outsourcing as a key | | | | to the provider that the relationship is long-term; |
| initiative for overall growth and not just as mere cost | | | | otherwise they will be inclined to disinvest in innovation |
| saving exercise. Hence organizations are increasingly | | | | and the relationship. Your organization must retain |
| seeking best-in-class outsourcing specialists and not | | | | process management expertise at a level at which |
| just large best of breed outsourcing service providers. | | | | you can clearly articulate future state requirements, |
| This is especially true in the IT & engineering | | | | evaluate proposals brought forward by the service |
| verticals as organizations even outsource new product | | | | provider, and work with your organization to get the |
| development tasks to specialized offshore vendors. | | | | business case for change. |
| Research intensive, customer focused outsourcing | | | | • Executive Visibility / Support. Senior |
| relationships now have to include the following to | | | | executives from the service provider side must have |
| remain competitive: | | | | high visibility and access. This includes steering |
| • Innovation Update. Quarterly, bi-annual, or | | | | committees, reciprocal headquarter visits, joint speaking |
| annual innovation reviews (also known as innovation | | | | engagements, regularly scheduled calls, quarterly and |
| boards) focus typically on state of the market, industry | | | | annual briefings. |
| trends and relevant information, technology updates, | | | | • Behaviour/Communication/Culture. Be |
| solution demonstrations, site visits, etc. Leverage other | | | | prepared to invest in and encourage business process |
| industry peer groups to understand what is happening | | | | transformations that are aligned to business goals - |
| in your industry, the outsourcing industry, and other | | | | rather early in any outsourcing relationship. |
| sectors. | | | | Transformation requires a partnership mindset, not a |
| • Benchmarking. Clients should always activate | | | | transactional orientation. Innovation is often not brought |
| their benchmarking clauses and focus on best practice | | | | to bear because clients do not ask for it, define what |
| as comparators of innovation—not just cost | | | | they mean by it, and motivate the provider to deliver it, |
| comparisons. Benchmark both functional excellence | | | | or put restrictions around it. Clients rarely help the |
| and outsourced environments. | | | | provider to understand what is important to them. |
| • Stakeholder Satisfaction Surveys. Perform | | | | Consultative BPO |
| monthly, quarterly, and annual customer satisfaction | | | | Outsourcing has now scaled the maturity milestone |
| surveys. They should be “360 | | | | globally and hence is increasingly consultative in nature |
| degrees”—covering multiple dimensions | | | | rather than being mere business vendors. Outsourcing |
| and all internal and external stakeholders. | | | | relationships now proactively meet business challenges |
| • Deliver on Partnering Promise. Hold regular | | | | as specialist BPO vendors invest to stay ahead of the |
| collaborative planning sessions. Where people are | | | | learning curve. |
| briefed on the strategic and business objectives. | | | | Outsourcing is often regarded as a change catalyst |
| Service providers need to come up with implantable | | | | and hence clients are increasing using outsourcing |
| strategies on how best they can meet their | | | | initiatives in their growth strategies/ employee career |
| clients’ business challenges. This makes the | | | | planning initiatives. Joint client-service provider partnering |
| outsourcing vendors to think and act above simple | | | | is key to this new consultative approach where both |
| tactical delivery. | | | | invest in transformations and not just fund reactive |
| • Value sharing framework. A transparent | | | | process management. |
| value-from-outsourcing sharing mechanism on a | | | | |