Renewals aren’t always the right answer.

Over that last five years service providers have become more efficient in providing higher quality services at a lower price. Additionally, outsourcing agreements have become more balanced and fair to both the customer and service provider.

In order to take advantage of these gains, customers have to enter into tough negotiations and potentially a competitive procurement. But, better contracts with price reductions as much 20 percent can’t be ignored.

But how do you even begin to understand how to get the process started? One of the most effective ways to begin is with a thorough market assessment. In other words, how does your contract quality, efficiency, legal protection, and rates compare to market agreements?

So what is the right answer – Renew, Renegotiate or Rebid? I propose the following:

Continue reading, "To Renew, Renegotiate, or Rebid: That is the Question"

Engaging middle managers in the sourcing process details will enlist their vast operational knowledge, convey your value and trust, and keep them well informed so they can communicate to the broader organization.

Continue reading, "The Power of Middle Management: Keeping the Good Guys on Your Side"

It’s time to renegotiate your outsourcing contract. Are you prepared?

The outsourcing contract renegotiation process is extremely complex. In my experience, clients who are unprepared almost always leave significant financial savings on the table or structure a deal that leads to future relationship issues and service disruptions. The best way to avoid these consequences is to understand how and when to renegotiate your outsourcing agreement...

Continue reading, "5 Steps to Take before You Renegotiate Your Outsourcing Contract."

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"