Alsbridge, Outsourcing, Optimizing
Optimizing Value from the Start
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By Craig D. Nelson,
Director, Alsbridge Americas
Once management has evaluated the risks and rewards, and then decided there is a strong business case for sourcing, the work of transforming the organization to extract that value begins. It is not easy and the value that organizations realize from their sourcing strategies varies dramatically from case-to-case. This article addresses what is required to optimize that value and most importantly how to make the transition.
During a recent study of outsourcing relationships over the last three years it was discovered that less than 50 percent of customers and providers realize the value initially identified in their baseline business case. Among the reasons for this finding are the following:
- Business reason for outsourcing is not clearly identified and communicated;
- The vision lacks clarity for people being impacted;
- People do not stop doing their old job and start doing their transformed job;
- People get in the way of the provider;
- Sponsorship across all levels of the organization is not sought or obtained;
- Responses to transformation are not adequately dealt with;
- Competing events cause frustration;
- There are no clear rewards for transforming;
- Transformation progress is inadequately measured and business impact is misunderstood; and
- Provider cultural, operational and strategic alignment factors are not considered.
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