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.
Every once in a while I come across a situation marked with incongruous and unexpected elements that, when summed up, can only be labelled as completely bizarre. One such situation started in the boardroom of Walker Ideas, a very successful inside-outsourcing service provider to the food industry. Walker operates at dozens of facilities dedicated to performing services that their customers strategically exited. As such, Walker is a key partner to their customers, or so they allow themselves to believe.
When robotic process automation (RPA) first burst on the scene 12 to 18 months ago, headlines focused on the technology’s startling impact on human labour requirements. Early adopters were finding that RPA solutions were executing routine and repetitive tasks and eliminating 40 per cent and more of the work traditionally performed by humans. The result was a dramatic opportunity to reduce costs and redeploy people for higher-value functions.
It’s the first thing millennials see in the morning, the last thing they look at before going to bed, and their constant companion throughout the day. It’s their phone. The younger generation's dependency on mobile is driven by the considerable role technology plays in our everyday lives. With the touch of a button, these young men and women can do anything from ordering a car or depositing a check to sharing photos, videos and stories with friends and the public at large.
I often get asked whether managed service is just hype and nothing but glorified “time and material” (T&M) in a different guise. Usually we understand a managed service to be measured, and paid for, based on a pre-defined effort and output for the work in hand, as opposed to T&M which is a simple calculation of the amount of time taken multiplied by the rate card value, plus the cost of any materials consumed. The simple answer is that it is hype if it is not done properly. Take the example of data warehousing, i.e.