Author Archives: TPI
“Come what may, all bad fortune is to be conquered by endurance,” Joey Barton, English footballer turned Twitter prophet, quotes the ancient poet Virgil. As Barton, and Virgil before him, reminds us: it takes hard work to win results. The balanced scorecard for sourcing promises a lot – to determine, measure and manage a set of predictable outcomes. But, like most treasure, it is the thing of whispers. There’s actually not much of a map to it, and only few … More
Every region of the world experienced significant outsourcing developments in 2011. The TPI Momentum 2011 Market Trends & Insights Geography Report found that global developments are increasingly connected. The natural and nuclear disasters in Japan, political upheaval from the Arab Spring in the Middle East and Africa and the continuing debt drama throughout the euro zone all impacted outsourcing decision-making far beyond those regions. Here are the Top 5 highlights from the report: The continental divide is growing. In 2010, … More
CIOs seeking to optimize operational efficiency often rely on strategies and frameworks such as ITIL and COBIT. But deploying a process improvement initiative or set of tools isn’t enough. True enterprise-wide process maturity is characterized by clearly defined activities, functions, roles, and responsibilities. This enables the IT organization to quickly address performance issues, identify root causes, and prevent recurring problems. Perhaps more importantly, process discipline enables demand management and flexible, usage-based pricing – essential components of cloud and utility computing … More
As Facilities Management Outsourcing (FMO) arrives in manufacturing companies, a vigorous debate arises over where to draw the line of demarcation in manufacturing plants. This line refers to the separation between management and maintenance of the building itself — including the building’s electrical, plumbing and HVAC systems — and management and maintenance of the systems linked to plant operations. Because it is often impossible to completely segregate the two, this is a critical issue to think through when considering FMO … More
No other department has as much reach both internally and externally as procurement. It supports every department and employee in the company, commits significant financial obligations on behalf of the company and has the ability to view and manage consumption. And yet, in most companies, procurement is not seen as the “go-to” department. A variety of challenges can dull its reputation, but it is possible to turn these negative perceptions on their head. Here are the Top 5 essentials to … More
Discussions around cloud security tend to be framed in terms of lonely ships sailing into uncharted waters: “You don’t know what you’re getting into,” we’re routinely warned. Actually, we do. The fact is, the fundamental security challenges confronting a company seeking to source IT infrastructure services in the cloud are essentially the same as those faced in traditional outsourcing. Various potential risks – data center vulnerability, network intrusion, unauthorized system access, data privacy, natural disasters, etc. – must be assessed … More
The North America payroll administration outsourcing market is constantly evolving. Different types of clients require different solutions, and providers continue to refine their offerings to meet the diverse needs. In recent years North America payroll providers have been stretching their outsourced payroll services so that what was once a specialized “service bureau,” fulfilling functions such as tax filing and check printing, is now broadened in scope to include traditional payroll processing as a basic package. Heritage payroll providers, such as … More
The “consumerization of IT” – or the Bring Your Own Device (BYOD) trend – has emerged front and center, and a lot of CIOs aren’t very happy. A recent article in Computerworld calls it a “thorn in the side” of most IT departments, and cites complexity, support, and security concerns. Like it or not, employees are purchasing iPads, Blackberries, iPhones, and other devices and using them for work-related purposes. One question CIOs need to ask themselves is, “When do I … More
The National Institute of Standards and Technology defines a hybrid cloud as a “composition of two or more clouds (private, community, or public) that remain unique entities but are bound together by standardized or proprietary technology that enables data and application portability.” That definition raises a key question: what does “bound together” mean? The unsatisfying answer: “It depends.” An increasingly popular form of hybrid cloud, commonly called a “virtual private” cloud, has certain infrastructure elements, such as servers and storage, … More
Implementing a global service delivery model typically requires rapid mobilization of resources. Historically, global service providers have relied on a variety of visas to meet clients’ demand for skills and aggressive deployment schedules. However, this approach is becoming increasingly untenable. Organizations in the United States planning significant change initiatives could see their projects delayed by staffing shortages due to current restrictions on visas for foreign workers. A contingency strategy is essential, therefore, to adjust for delays in bringing service provider … More
A recent survey of IT executives concludes that poor-quality service remains the biggest risk of IT outsourcing, even though, according to respondents, SLAs are becoming increasingly tighter. In analyzing the results of the survey, conducted by IDG, CIO magazine reports that, “Lax internal governance and an overreliance on contractual obligations may be to blame.” We couldn’t agree more. Clients (and their business stakeholders) frequently complain about services – even when service levels are being met and overall services appear to … More
That’s the provocative and interesting question posed by a recent CIO magazine article. If you listened to your business stakeholders, you’d sue them every time the smallest thing went wrong! In fact, while most companies never sue their outsourcer (whether onshore or offshore), many clients are unhappy, and that unhappiness is often caused as much by the lack of clear governance process as it by the provider’s service failures. Contract language to address major breaches is important, but most problems … More
TPI announced that we’ve accepted a seat on the Corporate Social Responsibility (CSR) subcommittee of the International Association of Outsourcing Professionals (IAOP). If you’re not yet a member or familiar with the IAOP, it is the global, standard-setting organization and advocate for the outsourcing profession. The CSR subcommittee is one of the most active bodies within the IAOP, leading discussion among members on how the outsourcing community can identify and address critical social, economic, and environmental issues on a global … More
In-depth research from TPI Momentum continues to inform business leaders around the world. Nearshore Americas, an independent news blog dedicated to outsourcing in the Americas, recently highlighted TPI findings in its post LatAm is More Than a Delivery Destination: Domestic Demand Takes a Front Seat by Pablo Velasco, a TPI director who specializes in advising companies in Latin America. Pablo’s informed discussion of the growing trend in domestic outsourcing in Latin America stems from original, objective data collected and analyzed by … More
As service delivery destinations have become increasingly globalized over the years, selecting the optimal location for a sourcing engagement has become a more and more complex process. While the number of possible locations has grown dramatically, each destination is also busy self-promoting, creating a competitive atmosphere that further magnifies the difficulty of your decision. What might appear to be a relatively straightforward choice based on general awareness of popular countries and cities, selection is — in reality — a much … More
