Category Archives: Outsourcing

The Not-So-Secret Ingredient to Delivering Seamless Services in a Multisourced Operating Model

Most organizations assemble their business services from multiple service providers, whether internal or external. Delivering services seamlessly to the client businesses from these multiple providers is a significant challenge that many believe is inevitable with multi-sourced operating models. Effective service management is the key ingredient to the success of such models. Effective management becomes even more pivotal as organizations introduce cloud-related services, which require the business to accept industry-standard services and to control their consumption of utility-priced resource units. The … More

Drivers of Incorporating Sustainability in Procurement Organizations

Sustainable sourcing — considering environmental and social impacts in selecting and managing suppliers — can enhance your company’s brand, improve operations and drive efficiency while promoting a healthier environment and stronger community. Regulators, consumer groups and customer demands drive sustainability requirements. Trillions of dollars are being invested in green funds, and companies tout their sustainability initiatives through ad campaigns. Risk management experts know that a company’s reputation can be tarnished by the careless environmental actions of its suppliers. Procurement organizations … More

Lessons Learned from the 2011 TPI Momentum Geography Report

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

Drawing the Line on Facilities Management at Manufacturing Sites

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

How to Keep Visa Restrictions from Delaying Your Transition to Global Service Delivery

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

Service Quality: The Devil’s in the (Governance) Details

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

Should You Sue Your Offshore Outsourcing Provider?

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

Corporate Social Responsibility: A Global Obligation

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

Iasta COO to Speak at 2011 Finance Transformation Conference Next Week

The next generation of strategic sourcing solutions has enhanced greatly over the past few years, allowing purchasing teams to become more strategic within their company. By following best practices to drive user adoption of these tools, these teams are quickly gaining traction and increasing their sourcing credibility. Jason Treida, Chief Operating Officer of Iasta, will participate on a panel discussion about this topic at the 2011 Finance Transformation Conference in Dallas, Texas on September 22. The panel is titled, “Expanding … More

Notable Trends in the TPI Momentum Market Trends & Insights 2011 Verticals Report

Look for interesting news in the TPI Momentum 2011 review of outsourcing spending. We looked at outsourcing trends in 27 vertical and 68 sub-vertical industries throughout 2010 and found that, while overall outsourcing spending increased by five percent, conditions were highly variable across industries – with spending up or down by more than five percent in over half of the verticals. Here are the TPI Top 5 highlights from this year’s report: 1. G2000 companies increase outsourcing spend. In 2010, G2000 … More

TPI Index: Outsourcing Industry Sees Growth in Regional Markets, Restructurings

In July, we held our 2Q11 Global TPI Index conference call, during which we discussed noteworthy trends in the sourcing market during the second quarter and the first half of the year. Compared with the previous second quarter, the second quarter of 2011 offered some welcome lift in several metrics: Europe, the Middle East & Africa (EMEA) total contract value (TCV) was up by 13%, Asia Pacific TCV rose 55%, and Restructuring TCV grew by 30% year-over-year. However, a poor … More

China’s Golden Sourcing Opportunity

A decade ago, the sourcing market share of Indian-heritage service providers was a puny 1 percent. Today, it is approaching 20 percent. Will an emerging group of Chinese service providers achieve similar growth and reshape global competition in the process? TPI has been working with the Chinese Ministry of Commerce (MOC) and the China Council on International Investment Promotion (CCIIP) since 2009 to accelerate development of the sourcing market and establish protocols designed to make the country more attractive to … More

Crowdsourcing – the Next Wave of Outsourcing?

In the late 1980s, the first wave of modern outsourcing realized the promise of specialization, labor arbitrage, risk sharing and scale efficiencies. From the late 1990s forward, the era of globalization saw the forming of the second wave of outsourcing with the rise of offshoring. Now, in the era of social networking, are we seeing the third wave of outsourcing with the emergence of crowdsourcing? Crowdsourcing is a means of tapping into the global talent pool wherein certain business requirements … More

New Co-CEO Arrangement at Aon Hewitt Worth Keeping an Eye On

A few weeks ago, Aon Hewitt announced that Russ Fradin, who led Hewitt since 2006 and is currently the Chairman and CEO of Aon Hewitt, will be leaving to become CEO of SunGard. Kristi Savacool, Aon Hewitt’s current chief executive officer of Benefits Administration, and Baljit Dail, Aon Hewitt’s chief executive officer of Consulting, were appointed co-CEOs of Aon Hewitt and will report to Greg Case, President and CEO of AON. Jim Konieczny, current chief executive officer of Aon Hewitt’s HR … More

Part 1: Creating a Value Plan to Derive Positive Outsourcing Relationship Change

“Be careful what you ask for” — it’s fortune cookie wisdom. We have many client situations where they want to know whether they are really getting the value out of their outsourcing relationships. They ask us to look at the situation from all kinds of angles: services, invoice and resource unit accuracy, risk, productivity and so forth. We do these types of assessments from time to time, and they almost always show that there is some value loss in the … More