By Kate Vitasek, Karl Manrodt, Mike Ledyard
Based on a study research with the collage of Tennessee and the us Air strength, Kate Vitasek has pointed out the pinnacle 10 flaws in such a lot outsourced enterprise types and indicates companies how one can reconsider their outsourcing relationships in a manner that would reduce bills, enhance carrier, and elevate innovation. This revised variation comprises up-to-date case experiences and a brand new introduction.
Read or Download Vested Outsourcing, Second Edition: Five Rules That Will Transform Outsourcing PDF
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Additional info for Vested Outsourcing, Second Edition: Five Rules That Will Transform Outsourcing
Example text
A senior manager was demonstrating what a great job her company had done on establishing measures. It had signed up for a seminar to learn how to apply the Balanced Scorecard and had hired a consulting firm to help create a world-class scorecard. The company had invested more than $1 million in an automated scorecard solution to capture and graph performance. Each of the supplier scorecards was posted on an internal website. One could quickly click through to look at the current measures and performance.
AILMENT 8. DRIVING BLIND DISEASE Another aliment that bedevils many outsourcing agreements is the driving blind disease: the lack of a formal governance process to monitor the performance of the relationship. When we started working with companies more than 20 years ago, most outsourcing arrangements fell into this trap. It was very common to find multi-million dollar outsourcing contracts that did not outline how the companies would measure their success. Typically the companies would track costs but not measure various aspects of performance.
24 The general media is filled with examples of outsourcing deals gone wrong. ”25 But is the future of outsourcing doom and gloom? Rather than dwell on the fact that many outsource arrangements fail, we wanted to dig deeper and look at why. Many studies and articles have outlined outsourcing failures; a survey from the Outsourcing Center offers some of the best insights. 26 Deloitte Consulting agrees that misalignment is a key issue; its report called for companies to develop a “spirit of partnership” between the company outsourcing and the service provider, which is the “most critical factor” for a successful outsource relationship.