As enterprises make significant investments in their sourcing and procurement function, they rightfully expect a solid return on that investment. One of the more significant value creation elements of a sourcing and procurement function is the team and process that focuses on strategic sourcing.
Over the last month, British businesses have been bombarded with other people’s opinions. In the outsourcing industry, this is quite normal: everyone and their dog has a strong opinion on how outsourcing companies should and shouldn’t operate. But this time, we’re being told that our businesses are on the line because of a vote. I’ve worked with outsourcing companies worldwide, and if there’s one thing I know about their culture it’s that they are very comfortable with change. And they don’t scare easily. They’re tough, resilient, agile and intelligent.
On Wednesday the world - well, that portion of it that registered, anyway - was treated to the delights of our first Outsource Talks webinar, our foray into the world of the talk show as seen in the outsourcing space... Nerve-racking though it was to host the first in this series, in an untested format, I have to say I thoroughly enjoyed the experience - thanks, of course, to the sheer excellence of my guests, to whom I must issue my heartfelt thanks.
With the EU referendum just a few months away, David Cameron and his pro-EU peers need to do everything they can to remind businesses of the outsourcing and trade benefits that come with remaining in Europe. However, a recent YouGov survey conducted by QuoteSearcher has shown that current efforts to encourage SMEs to export their products and/or services may not be as successful as hoped.
University of London Professor David Faulkner has written extensively about the need for cooperative, rather than purely competitive, strategic business relationships and alliances. Since the early 1990s Faulkner has studied the “essence” of competitive strategy, and the challenges involved in integrating cooperation as part of the competitive mindset. One of his books is International Strategic Alliances: Cooperating to Compete (1995). The strategies of cooperation has been his most common theme.
Earlier today, I had the honour of delivering the final presentation at the Sourcing Industry Group (SIG)'s latest London Regional Roundtable - this time round, actually, a joint effort with the wonderful folks at the Association of Corporate Travel Executives (ACTE), which also comprised the ACTE London Corporate Travel Procurement Forum.
The days of paying supply chain outsourcers by number of FTEs are on their way out. In that purely cost-based model, the OEM’s interests - keeping hours low to contain costs - are inherently pitted against their managed service provider’s - putting more FTEs on a project to maximise revenue. Instead, OEMs are now exploring outcome-based models, where sellers become partners who share the risks and rewards of achieving their goals.
While there is a lot of focus and discussion on how to outsource the right way and bring business value, a very common mistake many companies make is around ignoring how outsourced services are orchestrated with the functions of the retained organisation(s) to provide business with a seamless “IT experience". Organisations retain specific IT functions for a good reason. There’s the core vs non-core aspect, and then some functions require specialised skills that are best outsourced.
For all the many successes of outsourcing, it's not all sweetness and light... As promised a couple of weeks ago, here's another installment of our Top Ten series featuring some of the most outstanding, damning, incendiary (and at times remarkably poetic) insults from the global outsourcing community. The more sensitive amongst you should look away now... 1. “When we signed the deal we were assured we were getting the ‘A’ team.
There is a fiction that suggests that business decisions are made on purely utilitarian grounds. Psychologists have shown convincingly that people value the avoidance of loss far more highly than capturing gains. There are many and significant implications for those seeking to implement change, particularly in an agile environment. The Agile Manifesto The Agile Manifesto and associated delivery methods have gathered significant traction. This makes sense for those navigating uncertain consumer attitudes.