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Royston posted this in outsourcing on March 14th, 2012
In this video Prof Strassmann considers, in a very careful way, whether Outsourcing can be profitable. The short answer to this is yes if it is done corrrectly and he points to the main reasons for failure steming from managements inability to manage the process correctly. Especially it seems when it comes to deciding which functions should be considered. Continue reading Is Outsourcing Profitable? – Lecture by Prof Strassmann Royston posted this in outsourcing on December 7th, 2011
In negotiation avoid shortcuts and set specific goals – and ensure they are delivered. Evaluate, clarify and frame negotiations to keep competition alive. Document all discussions and carry out frequent self-assessment and use a term sheet, this helps drive and track the discussion and allows apples to apples comparison -over time the term sheet can evolve into a contract. Good note taking then transference to the final document of the substantive requirement and agreements made during the discussion is important. Do not leave anything out of the agreement that important to you that was discussed and agreed elsewhere – if it is not in the agreement it does not Continue reading The Five Steps to Outsourcing – Part Three Royston posted this in outsourcing on December 3rd, 2011
3.0 Organise for success First of all vendors to this for a living – often the vendor sales team have been doing this for years and when this is done will move onto the next. The customer side on the other hand may have not done this before or the team carrying out the supplier proposal evaluation may be completely new compared to the last time the outsource process was run through. It may be very wise to engage a contract consultancy to handle (or mentor) your side of the whole Continue reading The Five Steps to Outsourcing – Part Two admin posted this in outsourcing on December 1st, 2011
The jury is still out as to whether outsourcing can deliver measurable business improvement and better-cost performance. Many outsource deals fail to live up to the grand promises made in the press releases and back sourcing or early closure of deals is becoming an increasing trend. Having said this there are key principals that if followed can greatly increase the chances of success of the whole Continue reading Five steps to effective outsourcing – Part One Royston posted this in outsourcing on August 16th, 2010
I was reading in the outsourcing trade press this week about the political debate in the US about job losses in the outsourcing market. The debate centres around one of the most vexing questions in the outsourcing market as to whether outsourcing, or more specifically off-shoring, creates or destroys jobs in the outsourcing home country. This furore is particularly felt in the US where a political backlash threatens to develop that may result in government measures to remove some or all of the advantages of outsourcing – such as denial of tax relief on expenses as one Continue reading Does Outsourcing Create or Destroy Jobs admin posted this in outsourcing on March 5th, 2010
Lawmakers in more than 25 states and in the United States Congress have identified foreign outsourcing as a threat to US employment and prosperity. Legislators must ban federal or state contracts with companies that would outsource jobs to foreign Continue reading Is foreign outsourcing of American jobs by American Companies immoral? Royston posted this in outsourcing on March 5th, 2010
Can risk be reduced by multishoring? – the latest buzz word in the outsource vocabulary does it mean anything or just there to Continue reading Can risk be reduced by sourcing from multiple suppliers offshore? Royston posted this in outsourcing on December 24th, 2009
Moving non-core activities performed in-house to specialists outside the company helping the entrepreneur or business to focus on the core competencies and improve performance standards is the main premis of outsourcing. The growth and rewards of this practice can be quite high but the downsides are Continue reading How to Make Outsourcing Work Royston posted this in outsourcing on December 24th, 2009
Manage the up and down communication channels carefully. Make sure no seniors speak to vendors and control vendor access to senior management carefully. Some vendors are good at getting around the formal process to the senior management and exploiting this access to short-circuit the tender process. We all know of ‘golf course’ deals that cut through a bid process and enable vendors to return to the customer team informing them they ‘know’ the requirements of senior management. Most golf course deals end in disaster so should be avoided like the Continue reading How to start off a successful outsource project Royston posted this in outsourcing on August 10th, 2009
I was thinking about outsourcing change management and the observation that those being outsourced often speak with respect about the boss delivering the message whilst being very hostile to the organisation actually forcing through the reorganisation. It has often happened to me when talking to people being outsourced that some managers or leaders are able to give bad news when it is necessary whilst still maintaining a good relation with their Continue reading How can people in an outsourcing respect their manager but hate the organisation? |
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