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Entries from March 2006

Recommended Gartner Outsourcing Events in March/April

12. March 2006 · Leave a Comment

Here is a list of the current Gartner conferences around the globe. By chance you'll meet me in London end of April:

Categories: Events · Outsourcing

Reference Book: Managing Successful IT Outsourcing Relationships

10. March 2006 · 1 Comment

Petter Gottschalk and Hans Solli-Sæther, both of the Norwegian School of Management, have written an excellent book about best practices in outsourcing: “Managing Successful IT Outsourcing Relationships”. The book is well structured and gives at the end some insightful conclusions. Gottschalk and Solli-Sæther are describing their work as:

Managing Successful IT Outsourcing Relationships is a comprehensive guide on all the aspects of IT outsourcing, and is highly commendable for practitioners, researchers, policy makers and consultants alike. This book uses well-known theoretical perspectives and experiences learned from several business cases to develop models and guidelines for the complex IT outsourcing process and emerging relationships. It focuses on the important issues of strategy, structure, and management of IT outsourcing relationships and answers the what, where, when and how to outsource and manage outsourcing contracts.

This could be a standard in the outsourcing literature. I recommend it as a very good intro in the topic.

Categories: Books · Outsourcing

What Will Happen When It Ends?

10. March 2006 · Leave a Comment

Since you have embarked your outsourcing deal, you have to think of the end. David Clarke, vice president of enterprise technology services at The American National Red Cross, is describing the dangers of outsourcing (and what to do about them):

Outsourcing is a risky proposition, but one that offers potential benefits to the organization in terms of cost, service levels and access to talent. Managing an outsourcing deal well is not just a matter of negotiating effectively or implementing a strong governance model. Effective outsourcing management requires a life cycle approach that includes a robust sunset strategy. Whether you are contemplating an outsourcing arrangement or are well into one now, it's never too soon to start looking for the exit.

Read on >

Categories: Outsourcing · Risks

Gartner Books: Multisourcing

10. March 2006 · Leave a Comment

Gartner introduces a book about a new approach to Outsourcing:

Gartner sourcing experts Linda Cohen and Allie Young argue that yesterday's ad-hoc sourcing approaches are ineffective in today's complex terrain. Based on extensive, multiyear research, this book unveils a new operational model—Multisourcing—in which internally and externally delivered services are blended seamlessly, governed closely, and evaluated continuously for effectiveness and efficiency.

Categories: Books · Outsourcing

Outsourcers’ Seven Best Practices According To Accenture

10. March 2006 · Leave a Comment

A global study by accenture in 2004 highlights a “how-to‿ guide for outsourcing. Highlights include:

Experienced Outsourcers’ Seven Best Practices

1. Build in Broad Business Outcomes Early and Often: Incorporate business outcomes as a performance measure from the outset of the arrangement.
2. Hire a Partner, Not Just a Provider: Look for an outsourcing provider that brings a wide set of skills and strengths, and a long-term track record of delivering results, in addition to competitive pricing.
3. It’s More Than a Contract, It’s a Business Relationship: Give as much attention to performance measurement and the quality of your relationship with your provider as you do to the contract.
4. Leverage Gain-Sharing: Use risk/reward provisions as incentives for higher-performance outsourcing.
5. Use Active Governance: Use active governance to manage the outsourcing relationship for maximum performance.
6. Assign a Dedicated Executive: Task your talented executives with the mission of optimizing your outsourcing arrangements.
7. Focus Relentlessly on Primary Objectives: Be clear about objectives — cost, process improvement and the ability to focus on the core business are the most common among outsourcing veterans.

These seven best practices are still valid …

Categories: Outsourcing · Studies