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 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?"

Over the years I’ve worked with dozens of tier one and tier two outsourcing providers.  I recently asked some of them to provide their perspective as to “why their clients and potential clients should hire a sourcing advisor.”  One would initially think that a provider would be opposed to having a sourcing advisor involved as it might slow down the process and lessen the advantages that a provider could have over the client without the benefit of independent advice.  I found quite the contrary.

Listed below are a dozen “uncut” reasons why providers believe clients should hire a sourcing advisor:

 Continue reading "Provider's Point of View: 12 Reasons to Hire a Sourcing Advisor"

Unlike others perhaps, I didn’t learn the adage “you never have a second chance to make a good first impression” until I had graduated from college and was in my early working years.  I know for sure there have been times I did not put my best foot forward.  It may have been that I was just too nervous to know how best to make that good first impression.

Over the last year or so I’ve dealt with dozens of service providers both onshore and offshore who have had the opportunity to make a really good first impression.  For some reason, several have made it more difficult for themselves in the next scheduled interaction with the client because they came off as looking not as good as they really are to the client.  I am not sure if they didn’t take the time to plan for the meeting or couldn’t muster the right resources to engage with the client.

I know this is going to sound a bit too trite… but it’s the simple things that make the difference to clients.  Let me cite three that stand out: 

1) Take notes - Sounds a bit ridiculous but I have had clients who after an interaction came away with the impression that the people they met with were not really interested in their business.  I believe this was quite to the contrary, however, there sat five executives who just listened, nodded, but didn’t take a single note.  Taking notes demonstrates you are interested in what the client is saying.

2) Engage - More often than not I’ll see three or four people attending a meeting and one or two of them do all the talking.  After they leave, the client is not sure why the others were brought along.  Everyone should have a defined role to play and needs to contribute to the topic.  Otherwise leave them behind.

3) Push back - I think sometimes service providers go too far in agreeing with the client.  We had one client recently who told a provider, “Tell us what we need to hear, not what you think we want to hear.”  The clients I have worked with want to hear the truth.  If you don’t agree with what they say, tell them.  But do it in such a way that you can factually back up your position, not just provide an opinion.

I realize these sound very trivial, but whether you are a service provider seeking new business or interacting with your own senior executives, all three apply.  I have to remind myself every time I meet a new client or service provider that I too am held to the same standard of making a good first impression.  Make yours count.



Comments (5) |Permalink

What a way to kick off the New Year?  Alsbridge continues to grow organically and has just added a new service line to our suite of offerings to clients.  I’m excited!

We’ve just introduced what I believe is a step-change in the sourcing advisory space by acquiring TAG, the leading experts in procurement, contract negotiation and expense management of telecommunications services including voice, data, wireless, internet, local, and international services. 

In my opinion, Alsbridge already had the best methodology and database of information to assist clients to reduce costs and improve services levels in information technology and business processes.  Now, we have data-driven capabilities in the telecommunications network space as well. 

I’ve watched the outsourcing industry grow up and seen its sibling – the telecommunications network services industry – growing side by side.  And since moving to the sourcing advisory space in 2003, we’ve worked side by side with consulting firms in the telecom network spaces.  Combining the expertise in both spaces has long made sense to me, but I hadn’t found a firm with the right focus on service delivery excellence until we began talks with TAG.  The acquisition of TAG is a continuation of a strategic plan to acquire data-rich consulting capabilities to be able to provide a wider set of services to our clients and meet today’s as well as tomorrow’s need to reduce cost across the enterprise.

Simply put, no other sourcing advisory firm can provide clients with the depth of expertise in sourcing information technology, business processes and telecommunications network services.  Our current and future clients will benefit greatly from the synergies!



Comments (2) |Permalink

It occurred to me the other day there was a time when outsourcing providers would cringe when they heard a sourcing advisor had been retained by a client or prospect.  But I don’t think that is the case any longer, nor should it be.  In fact, I believe that the news should be met with optimism, and not just because the buyer is sending clearer signals regarding making a sourcing decision.

Companies looking to begin a sourcing journey, whether outsourcing their IT infrastructure or applications or sourcing a mix of business processes, desire a well-crafted deal that will optimize their goals.  Providers used to think that an advisor in the mix would lengthen the time until a deal is struck.  I offer the opposite is true.  Advisors bring to the table structure and project management acumen that will assist their clients by quickly determining key sourcing decisions and an overall streamlining of the project.

I contend providers will benefit the same as buyers do when an advisor has been engaged. 

Continue Reading "One Sourcing Deal, Three Wins"