It’s Time to Talk Sense about Outsourcing

Gregory Mankiw, head of the White House Council of Economic Advisors, ignited a firestorm of debate when he said outsourcing of U.S. jobs is probably a good thing in the long run. As tends to happen with hot-button issues in presidential election years, sensible discussion of this question was soon drowned in an uproar of political posturing. Experts at Wharton and the Boston Consulting Group … [ Read more ]

Vital Functions

HR outsourcing is booming, as companies send everything from payroll to training outside. But take out too much of the company’s core, and you risk losing its heart and soul.

Practice Safe Outsourcing

Not all vendor contracts are dependable. It’s up to you to make sure they are.

Making Offshore Decisions: A.T. Kearney’s 2004 Offshore Location Attractiveness Index

The scene is a familiar one. A new offshore venture hosts its grand opening celebration as the mayor lights a ceremonial lamp and a client makes a traditional food offering. An Indian businessman steps to the podium, commenting on what the new company means in terms of improved service and growth. Events like this take place all over India, all the time. But this one … [ Read more ]

Business Process Outsourcing Big Bang

As the uses for BPO have expanded, however, so too has the confusion about how to make it work. The old formulas about when to use BPO, how to structure deals, how to manage relationships, and how to capture value no longer hold. In order to be successful, executives must configure a host of complex choices into a unique “value equation” that fits their situation.

This … [ Read more ]

Where to Locate: Selecting a Country for Offshore Business Processing

Last year, nearly half of all CIOs used offshore providers to avoid high labor costs in the United States and Europe, and two-thirds say they plan to send work overseas this year. Yet while offshore business processing is among today’s hottest topics, few CEOs have a basis for comparing host countries. A.T. Kearney has developed an evaluation tool that rates countries according to three factors: … [ Read more ]

Put It All in the Contract

How to avoid 10 potential issues in your outsourcing relationship.

Metrics and Incentives In Outsourcing: Driving Peak Performance

Metrics and Incentives are an important component of outsourcing relationships, but as executives use outsourcing more strategically, these become more critical than ever.

In this research study, we found that each type of outsourcing relationship calls for different metrics and incentives to some extent. More importantly, executives also use the same metrics and incentives in different ways to shape the outsourcing relationship they need. Tapping new … [ Read more ]

Precious Connection

Companies thinking about using offshore outsourcing need to consider more than just cost savings.

Staying Afloat When Going Offshore

Knowing the risks of offshore outsourcing will help you avoid shoals along the way.

Michael E. Raynor and Daniel Littmann

Historically, the critical interfaces for IT have existed with the functional departments. Key business processes such as finance, human resources, and marketing weren’t standard between companies and, in many cases, weren’t even standardized within an enterprise. In such an operational environment, business-process automation software was often custom-built to bridge the gap between the IT infrastructure and the rigid business-process architecture. It made sense to keep … [ Read more ]

Five Rules for a Great BPO Agreement

Successful outsourcing of your business processes begins close to home.

Adaptive Pricing Comes Into Focus

If there’s anything harder than deciding what to outsource, it’s negotiating a fair price.

In the past, fixed-price or cost-plus pricing models were an adequate, if imprecise, way to compensate outsourcers. But today’s competitive marketplace offers CIOs new alternatives that add flexibility and agility to these relationships. Indexed pricing, gain sharing, and capacity or utility pricing promise a stronger correlation between business results and IT-resource consumption. … [ Read more ]