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Reengineering the Retained Organization
Finance and Accounting Outsourcing (FAO) dramatically changes the ratio of workers to middle managers. This change creates a promising reengineering opportunity for the outsourcing buyer. Paul Nowacki and Mike Tustian describe how to take advantage of this change to create even more outsourcing value.
Dealing with Change: What Buyers and Suppliers Need to Know to Survive the Renewal Event
The outsourcing market is undergoing a major structural change. The Everest Research Institute estimates $118 billion will be up for renewal between 2006 and 2008. Everest analysts outline why the outsourcing landscape faces tectonic change and describe what the market will look like when it’s all over.
Lessons Learned From This Year's Awards
Editor Beth Ellyn Rosenthal, who conducted all the interviews, finds six recurring themes among the winners. The most surprising: offshoring actually created jobs for Americans.
Suppliers Face a Changed World As First Generation Outsourcing Deals Expire; New Players Hope to Gain Business in Round Two
The Everest Research Institute analyzed deals up for renewal between 2006-2008. It found 41 percent face a medium-to-high risk of getting restructured. Here's how the world is changing and what it means for both buyers and suppliers.
Full Service Outsourcing
Outsourcing three or more processes in a single transaction is the fastest growing segment of BPO, according to Michel Janssen and the Everest Research Institute. Janssen and colleagues Joe Fernandes and Kara Wyatt discuss key considerations for buyers trying to decide whether to source individual functions together or separately.
Increasing Regulatory Requirements Create a Stronger Case for F&A Outsourcing
Regulatory requirements are a way of life for CFOs. Paul Nowacki and Sonal Singla argue the primary challenge for CFOs today is NOT in meeting the current laws but rather in developing the agility required to efficiently respond to future requirements. Outsourcing is a good way to gain that agility.
Will the Labor Arbitrage Advantage Disappear?
Will offshoring's success raise wages in offshore locations so high that it stops making economic sense to move the work there? The Everest Research Institute studied the data for six months, examining the sustainability of labor arbitrage between five key locations offshoring work and six key locations receiving that work. The bottom line: offshoring will make economic sense for 20 years or more.
IT Outsourcing and Pricing: How Much, How Long, and What to Price?
How do buyers know if they negotiated the right price for their IT deals? Frank Usher says asking the right questions is crucial. Here's how to frame those probing queries.
SourceNet's Leon Busch Paints the F&A Landscape and Describes Why It's Good to Specialize
What happens when a venerable supplier buys an enterprising, entrepreneurial one? CEO Leon Busch discusses the strategy behind Mellon's acquisition.
How Offshoring Is Creating the Bank of the Future
Banks in 2010 will face different challenges than they do today. Marc Liebman and John Shuck explain what they'll face and how offshoring will help them address the realities of a brave new world.
Phil Fersht's Predictions for 2006
NelsonHall analyst Phil Fersht believes 2006 will be the year that has competitive bite. Here are his six cogent predictions about what will happen to HRO this year.
No Need to Change Systems When Outsourcing F&A Processes
What happens to your F∓A system when you outsource? Only eight percent have transferred ownership of systems to suppliers. Is this a good idea? Paul Nowacki and Sonal Singla discuss the pros and cons.
The Big HRO Deal Is Back. Thankfully, It Has Grown Up
The DuPont/Convergys transaction launched the second generation of big HRO deals. Marc Pramuk explains why this is happening, what's different from round one, and what it means to you.
FAO Suppliers: Clouds Will Darken Today's Bright Future. Get Ready!
Currently FAO suppliers are enjoying enviable growth. But will it continue? Paul Nowacki thinks not, at least not in same way. He discusses what the coming changes mean for both buyers and suppliers.
Recent Trends in Retail Outsourcing
Retailers first began outsourcing to cut costs. Now the strategic goal is to achieve top-line growth. And that requires business transformation. Retailers have two choices to get there.
Why Finance And Accounting Outsourcing Will Experience Double Digit Growth
Paul Nowaki and Nikhil Rajpal explain the five reasons driving this growth and discuss what it means for both buyers and suppliers.
Everest Research Institute's 2005 FAO Report: Growth, Offshore Key Findings
The Everest Research Institute just released its FAO report. Read how multiple process FAO is experiencing a growth spurt, why offshoring has become an integral part of today's FAO, and how IBM and Accenture have cornered the market.
Trends Suggest More and Bigger Utility Outsourcing Deals on the Horizon
Since utilities are asset-intensive companies, optimizing operational business processes is vital to most utility providers. Read about three trends energizing utility outsourcing.
The Power Of A Corporate Governance Organization
Governance is never easy. But it's easiest when a buyer outsources just one process to one supplier. Things grow complicated when buyers add processes and/or suppliers. Drew Wright explains how an enterprise governance organization can help.
Is Offshoring Demand Sustainable?
How much demand can the Indian providers handle? Will emerging supply-side constraints hinder their enviable growth? Sheetal Bahl of the Everest Research Institute studied the issue and has some answers.
Six Industry Trends from the Outsourcing Excellence Awards
The Outsourcing Center interviewed every applicant. Peter Bendor-Samuel noted six trends that describe outsourcing today.
Four Ways to Unlock Value in Government Outsourcing
Buyers and suppliers need to work together to minimize risk and create value. Everest's Samir Jog shares four ways to do that.
Unlocking the True Potential of Outsourcing in Governments
Changing market dynamics are likely to reshape public sector outsourcing over the next few years. Everest's Samir Jog describes seven events that are molding the market.
Shifting Sources of Value in Financial Services Outsourcing
What's happening in the financial services industry? Everest's John Shuck studied transactions back to 1999 and crunched the numbers. One surprising finding: deals are getting shorter and smaller as companies actively try to limit risk and create flexibility.
You've Outsourced Procurement. Now What?
Selecting a supplier and signing the contract are just the beginning. Knut Meyer lists eight steps to ensure the success of a procurement outsourcing effort.
Why the Midmarket is the Hottest Segment of HRO Today
A new report from the Everest Research Institute found the midmarket accounted for more than half the full-service HRO transactions. Eight trends are converging to make it the fastest-growing segment of the HRO market.
Key Offshoring Trends for 2005
Atul Khosla remains positive about India's predominance despite new challenges like the growing appreciation of the rupee against the dollar and increasing labor costs that threaten India's cost advantage.
How Outsourcing Facilitated a Sale
A major manufacturer wanted to acquire a niche company. But the buyer was unhappy with two aspects of its manufacturing process. Outsourcing removed both objections.
New Market Factors Driving an Outsourcing Staple--Contract Manufacturing
Original equipment manufacturers have been using contract manufacturers for years. Today high tech product life cycles have become so short that building plants and hiring specialized staff is no longer economic for OEMs. Contract manufacturing is still the answer.
Service Level Agreements: A Better Mousetrap
Is there a better mousetrap to catch your supplier in the maze of service level agreements? Bruce Leshine and Mel Van Howe believe the performance decrements model is a better method because the emphasis is on making sure the supplier corrects problems in a timely manner rather than generating credits that are inconsequential to both parties.
The Top 10 Outsourcing Events in 2004 and What They Mean
David Letterman didn't do a Top Ten outsourcing list, so we compiled one for him. Read why the Hewitt/Exult merger, the TXU/Capgemini deal, and EDS' fallen angel status made the list.
Predictions for 2005: Captives the Next Big Story in Offshoring
Peter Bendor-Samuel shares his predictions for outsourcing in 2005. The hot news: the growing importance of captives.
Harnessing the Full Power of Offshore Sourcing - Part II: Avoiding Corporate Decisions That Limit Savings
Corporations offshore to save money, then make decisions that limit the savings possibilities once the outsourcing begins. An Everest offshore team discusses the common mistakes corporations unwittingly make.
Convergys' E-Learning Helps Retailers Survive
A J.D. Powers and Associates study reports department stores rely heavily on sales and promotions in the battle to attract customers. However, many customers say a satisfying shopping experience is more important than good prices. Convergys' e-learning program helps retailers train their people to sell.
A Good Sale: How Outsourcing Can Help Retailers' Bottom Lines
Every industry vertical has its unique challenges. But the retail sector has a full shopping cart. Mike Atwood explains how outsourcing can help retailers and makes some predictions for the future.
Going for the Gold: What it Takes to Really Win in Outsourcing
Concluding our five-part series on what causes outsourcing arrangements to fail, we look at the picture from the opposite corner--the keys to success--with advice from 68 buyers and providers that achieved even more value outcomes and higher ROI than they anticipated at the outset.
When Outsourcing CRM, Total Business Value Eclipses Labor Arbitrage
In the past, cost was the overriding consideration when companies outsourced their call centers. Work went offshore because few American suppliers could compete with the offshore providers. Today companies have discovered cultural compatibility between buyer and provider is just as important as the savings. Here's what they learned.
The Gruntled Employee: A Holistic Model Addressing Behaviors in Outsourcing
Some operating models clash with outsourcing's ability to achieve objectives. Here's a different approach, a more holistic model focused on organizational culture and behaviors. CSC is using it and experiencing notable successes!
Consortia Buying: A Revolutionary Trend in Outsourcing
The consortia buying of business process outsourcing services is about to explode worldwide and will be become a major trend among Global 1000 and mid-market companies.
The CON-fidence-Games Aspect of Outsourcing Arrangements
In our study of what makes outsourcing relationships fail, we found executives on both sides of the fence whose corporate scenarios cause them to appear to be taking advantage of each other. This article examines outsourcing's con games and what the parties need to do to win.
Foreign Outsourcing Invigorates US Economy
Daniel Griswold of the Cato Institute debunks offshoring myths using Cato research. He explains the economic benefits of offshoring and puts the job loss issue in perspective.
How Mature Are Offshore ITO and BPO Offerings?
The answer to that question is a factor in the decision to offshore. Stephen Dunn explains why it's a good time to begin pilots or adopt a fast-follower strategy.
What Causes Outsourcing Failures?
Outsourcing Center has been studying the risks and causes of outsourcing failures. This article presents some of the findings from the Center's 2004 survey on Leading Causes of Outsourcing Failures. This is the first in a series of five articles and several downloadable research papers on the topic of failure.
Lou Dobbs: Here's Why You're WRONG!
Lou Dobbs has been one of the staunchest critics of offshore outsourcing. Peter Bendor-Samuel sets the record straight and tells him why he's wrong.
Presenting the Winners of the 2004 Outsourcing Excellence Awards
Long before offshore outsourcing became a component, outsourcing was already established as a strategic business solution that enables enterprises to do business more efficiently and cost-effectively, thus making them more competitive in the marketplace.
Why We Need to Talk About Risk
Dealing with risk at the outset helps create successful outsourcing relationships. Peter Bendor-Samuel discusses one way to frame the discussion.
Should You Increase the Scope of Your HR Outsourcing?
Your first venture into HR outsourcing is successful. Now you want to add more functions. Peter Bendor-Samuel shares five tips to add scope.
Ask the Experts: Manufacturing
Buyer's Guide to Business Transformational Outsourcing Essentials
Unlike traditional ITO or BPO, achieving business transformational outsourcing
goals requires specific relationship and contractual components. In this third
article in our BTO thought leadership series, we share information crucial
to successful BTO initiatives.
Procurement Outsourcing To Double In Next Three Years According to Accenture Study
A just-released Accenture study reports the combined opportunities of cost reduction and more time to focus on core activities encouraged buyers to outsource their procurement process.
The Correct Way to Sole Source, Part 2
Sole source initiatives are successful when the buyer manages the process. Peter Bendor-Samuel, Todd Furniss, and Eric Simonson discuss the steps buyers can take to keep a sole source outsourcing on track.
Business Transformation Outsourcing Reinvents the Wheel to Create Strategic Impact
Peter Bendor-Samuel discusses how business transformation outsourcing can make a tactical process strategic.
The Correct Way to Sole Source
Many companies worry a sole source outsourcing is not beneficial to the buyer. Actually, sole sourcing is efficient and time effective if done wisely. Everest executives describe the proper parameters. Part one of three.
Troublesome Findings from Outsourcing Center's Study on Decision-Making Processes
There's a troublesome trend in decision-making processes in the outsourcing community. Here are the details, along with the best-practices suggestions.
Is There Life After Signing a Long-term Outsourcing Contract?
Facilities and real estate management processes are a highly specialized set of services that can make all the difference in building effective tenant relationships. Since Travelers occupies some buildings as a tenant but is the landlord in others, it sees clear benchmarking differentiation. Read why this leading financial institution enjoys a significant competitive advantage because it outsources these processes.
The Everest Health CheckSM: How to Get Maximum Value From Your Outsourcing Relationship
A successful outsourcing relationship has more components beside price and service levels. Buyers who also are concerned about strategic alignment and governance do better. A new Everest tool -- the Health CheckSM -- helps users determine the health of their relationships.
ITO Has a New Player: the New HP
HP just inked four mega deals in one week. The ITO marketplace has a new player. Here's why Peter Bendor-Samuel thinks this is really good news for buyers.
Why Does the Contract Price Differ from the RFP Price?
Providers proffer a price in the RFP process. That price may change when it's time to sign a contract. Robert Joslin of Everest Group explains why price variance is a normal occurrence and what to do to keep it from becoming a problem.
Lifting the Winner's Curse
Unlike most auctions, both buyers and service provicers in an IT outsourcing transaction pay if the winning service provider offered an irrational price to get the deal. Stephen Dunn offers tips to buyers on how to avoid the winner's curse.
Building a Case for BPO
- Part 3: From the Service Providers' Perspective
Buyers outsource because service providers can supply innovation, top technology and key personnel. But the providers can't supply these without making a profit. Damon Rosenhan explains the economics of a win-win outsourcing deal.
For CIOs, Breaking
Up (With Your Outsourcing Supplier) Is Hard To Do
CIOs: What should you do if you discover you're paying too much or your
service provider is having financial difficulties? Mike Jones, a former
CIO who's now CEO of (i)Structure, shares some thoughts about possible
courses of action.
The Importance of Buyer
Flexibility: Helping Them Help You
Sometimes buyers
exert inflexible controls
over their suppliers. Although well intentioned, these controls often
result
in hidden costs and barriers to value creation. Learn how to avoid this
mistake.
Finance and Accounting
Outsourcing Set To Explode as Stable Service Provider Base Develops
Peter Bendor-Samuel says finance and accounting outsourcing is "exploding."
Read why in our continuing series on "Outsourcing the Enterprise."
Implementing/Transitioning
into Outsourcing: Advice for Starting an Outsourcing Relationship
The implementation and transition phases of outsourcing are fraught with
complexities and unexpected challenges. Some relationships move on to
meteoric success; others hemorrhage so badly at this stage that it's
difficult
to recover. Why? Find out in this second in a three-part series on outsourcing
relationships.
The Importance of Picking
The Right Partner
In IT deals, many buyers think price is the determining factor. But if
you're dealing with a high-quality service provider, it's the people and
the cultural fit that really make the difference. Rob Damm, Everest consultant,
explores this critical key to successful outsourcing in this article.
Americans and Indians
Tame the Internet Frontier
In the past,  Indian
software development companies set up American offices to win outsourcing
contracts.
Buyers Want Partners
Not Just Providers
Technology is the main driver changing the face of outsourcing.
Channel Changes
Rita Terdiman of the Gartner Group talks about the revolution
going on in the ASP market.
E-voking E-commerce
E-mmediately
Companies today realize that if they want to stay in business
they will have to enter the e-commerce fray.
Incentives: Don't
Sign an Outsourcing Contract Without Them
Incentives not only balance the sting of penalties, but they encourage
the outsourcer to invest both talent and money in the relationship.
A New Era for Outsourcing
The global changes of the last five years have broadened the range
of reasons to outsource.
Outsourcing's
Little Dipper
Outsourcing, often undertaken by buyers who have no prior experience
navigating the depths of this intricate business relationship model, can
end up in a shipwreck.
Problematic Areas of
Cost
Dennis McGuire of TPI discusses the key places where the issues
of outsourcing costs can be addressed.
The Admixture We Know
as Outsourcing
Analyst Peter Bendor-Samuel discusses how outsourcing can be the key element
to a successful merger.
ASPs Colonize New Frontier
Peter Bendor-Samuel discusses the evolution of ERP applications from large
corporations to the mid-market.
As the Company Changes,
So Goes the Contract
Dennis McGuire discusses the dynamic business world and the need for flexibility.
Compass Points to Growth
and Maturation
COMPASS America's Syd Hutchinson and Geraldine Fox offer their views on
the maturing outsourcing industry.
Communication: Cornerstone
for Flexibility
Kepler Knott of G2R discusses why communication is the key to managing
and retaining a flexible service-level agreement.
Developing a Partnership
Dave Burkett of COMPASS talks about the importance of flexibility in developing
a partnership.
Even Successful Teams
Break Up
Peter Bendor-Samuel discusses what happens when the original intent of
a relationship starts to change.
Expanding Markets Through
Acquisitions
Jeff Kaplan discusses the factors to consider for a successful acquistion
transition.
The Future is Now
for ERP Applications
Analyst Mike Corbett talks about the changing mentality of ERP vendors
towards mid-market companies.
The Growing Pains of
Logistics Outsourcing
George Logemann discusses the maturing of a $40 billion industry.
Logistics and Bottom
Lines
Analyst Peter Bendor-Samuel explains how outsourcing logistics can lower
inventory, delivery time and overhead.
The Long and Short
of it All
Peter Bendor-Samuel discusses the advantages of establishing long-term
contracts with shorter-term service agreements.
Making the Move into
the International Market
Dennis McGuire and John Buscher discuss the uphill battle of infiltrating
the international market.
Market Momentum in
Managing Manpower
Peter Bendor-Samuel discusses the drivers that are leading more
companies towards outsourcing their HR function.
Moving Towards Total-Solutions
Outsourcing
Stephen T. McClellan discusses why single integrators are squeezing
best-in-class providers right out of the market.
A Pact for Differences
Peter Bendor-Samuel discusses the importance of partnership in
an outsourcing relationship.
Profile of a Startup
Mark Hodges says that the number one strategy for growing a services company
quickly, is to start an outsourcing
Slant on Success
Peter Bendor-Samuel discusses why a firm foundation is more important
than the structure that sits upon it.
Transitioning Employees
from the Back Office to the Front
Allie Young and other Dataquest analysts discuss their latest research
on employee transition.
The Emergence of the
Network
Analyst George Logemann describes the growing importance of the network
in enterprise operations.
The Little Things That
Count
Dean Davison stresses the importance of honest communication both in avoiding
and during renegotiation.
The Many Flavors of
BPO
Analyst Allie Young takes a look at the BPO landscape - the services,
the market players, the relationship structures.
The Meat and Potatoes
of Multi-Vendors
While the glamorous deals are stealing the glory these days, Bill Martorelli
points out that growth is likely to come in less complicated arrangements.
Outsourcing: The First
Option
Michael Corbett contends that companies moving into the global arena should
consider outsourcing before deploying internal resources.
Quest for the Best
Organizations, in their quest for the best, are driving a trend toward
teaming. Alan Gonchar offers an overview of the movement.
Relationship Management:
Key to Success
Want to map out a plan for success in e-commerce? Stan Lepeak says to
pay close attention of relationship management.
The Two Faces of Outsourcing
Problems
Analyst Dean Davison describes the two categories into which most outsourcing
problems fall.
Transcending the Adversarial
Conflict exists in outsourcing, but analyst Dean Davison says contracts
and service levels can be used to overcome the difficulties.
What's Better for Business?
Ellen Quinn talks about outsourcing's positioning in the marketplace and
the factors essential for success.
From Little Acorns...
The growth of international IT outsourcing is staggering.
How Good Do You Want
to Be?
Compass America provides tips for improving outsourcing relationships.
Measuring Value in
IT
COMPASS discusses how performance of an information systems
division should be measured, and how should its value be defined?
Planning Beyond the
Honeymoon
Analyst Randy Johnson reminds us to stay focused
on long-term benefits.
Taking the Pinch out
of Pricing
COMPASS offers insights in increasing satifaction
in one contract area as he shares approaches to evaluation of pricing.
The When and Why of
Benchmarking
COMPASS explains the opportunities that exist
for benchmarking to ensure a fair deal in outsourcing.
The World Beckons...Proceed
With Caution
Lisa Maio Ross, a senior analyst for IDC, offers
a comprehensive view of the potential and the challenges.
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