The secret to keeping your outsourcing initiative on track is having a governance model in place that not only specifies but also, constantly monitors and measures how effectively your provider is delivering your outsourced services - without it you simply cannot assure or improve the quality of service.

But how can you track the delivery of outsourced services when a portion of your services are in the Cloud?  

Continue reading, “How Can You Measure Success in the Cloud?”

 All successful outsourcing and shared services relationships depend these five factors...

Continue reading, "Five Success Factors in Retail Outsourcing" to see what they are.

In a recent survey by Alsbridge, Inc. 67 percent of Tier 1 and 2 managed service providers agreed that 2010 is shaping up to be a better year than 2009 for securing meaningful service contracts.

The dust is finally settling, while we’ll see an uptick in outsourcing deals this year, our research reveals an entirely new landscape because of the increase in smaller, more nimble providers, a consolidation of larger players and emerging markets who are hungry for a seat at the outsourcing table.

Our mid-year, survey reports these surprising trends...

Continue reading, "Outsourcing 2010: What Are Your Competitors Buying?"

I was recently working with a client that was stuck in a sourcing ditch. The ditch was filled with mistrust, mismanagement, indecision, and a stack of proposals…. they couldn’t get out without assistance. But, with the help of an advisory firm with the right toolsets and experienced advisors they were able to get things back on the road to success. Read on to see how.

Continue reading, "Don't Get Stuck in a Sourcing Ditch"

I am always truly amazed at the extent of differences in a company’s culture from one client to the next even within the same industry. Some clients are very conservative and spreadsheet-driven while others are more free-wheeling, making critical decisions based on handshakes and hallway conversations.  
Each style has its pros and cons, and companies can be successful either way but occasionally I run into the worst of both worlds. I call this perfect storm, “penny wise and pound foolish.”

Continue reading, "Penny Wise and Pound Foolish"

I liken the strategic sourcing journey as a marathon accomplished in a series of 100 meter dashes. Similar to the Tour de France, the annual bicycle race covering 3500 kilometers, the sourcing journey is organized and completed in stages. Some are long and require patient dedication to overcome tough mountain ranges and deep valleys, while others are shorter and require heads-down sprinting.  If you’ve personally been through a sourcing initiative, this analogy probably brings back fond memories, or maybe not.

Continue reading, "How Many 100 Meter Dashes Can Your Organization Sustain?"

 In many ITO deals, clients measure the worth of a server or network based on whether it is running 24 hours a day. But, unless your business is global or you provide an online service, you may be over paying for your high availability / 24 hours a day service level.

The perfect service level has a business-oriented view and provides only the necessary service requirements to fit your unique business needs.  Why pay for service levels that don't fit?

Continue reading, "Stop Paying for Service Levels that Don’t Fit"

Should a client invest in future IT infrastructure architecture prior to outsourcing, or should they wait and work with the selected provider? What happens when a client invests a significant amount of time and money to develop their IT infrastructure “end state design” only to learn that their future vision is in conflict with their provider’s economies-of-scale position?

Continue reading, "Which Comes First: End State Design or Outsourcing?"

Plans are nothing; planning is everything.—Dwight D. Eisenhower

In a previous blog, I discussed the three cornerstones to operational alignment:

Operational Alignment = Process Alignment + Governance Alignment + Transition Alignment

Previously, I discussed process and governance alignment, and this blog will discuss the importance of transition alignment.

Click here to continue reading, "3 Critical Elements of Operational Alignment: Part IV - Transition Alignment"

The provider’s sales team has gone, all site visits have been conducted, and the contract has been buttoned down.  It has been a smooth transition but, now it’s time to put offshore delivery and support to the test of meeting business demands. But, in the new outsourced environment, how do you know whether the objectives against which the provider’s teams are managed, are favorable to your goals?
 
In this business, the key raw materials are people and their abilities. Delivery teams are incentivized to control the cost of people through a series of measures. By understanding these measures, you can better examine whether or not the objectives established for the offshore team will be aligned to your best interests. Below are some of the success criteria typically applied to offshore delivery teams by their management.

Continue reading, "Offshoring:  Are your Provider’s Team Objectives Aligned to Your Goals?"