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BPO: Scope and Stakeholders Still Reign Supreme

Category:   Strategy & Business Case  Finance & Accounting Services  Business Processes...

Business Process Outsourcing (BPO), initiatives covering Sourcing and Procurement functions are on the rise. With the general economic climate teetering near a double-dip recession in the U.S. and not any better around the world, many companies are looking at BPO to shed fixed costs, improve process effectiveness and efficiency, bring more spend under management and increase compliance enterprise wide to take advantage of global and regional contracts and save real, hard cash.

Investing upfront to define the scope of your organization’s BPO needs as well as aligning your key stakeholders, are two steps in the BPO process that reign supreme in terms of creating an effective and successful sourcing journey outcome.

This article features a recent initiative wherein a Fortune 500 multinational high technology and information services company struggled to implement a BPO initiative for Sourcing and Procurement without scope and stakeholder support.

Not Your Typical Outsourcing Business Case Analysis

Category:   Strategy & Business Case  IT Infrastructure & Applications  Outsourcing

Operation delivery improvement is the primary expectation of every sourcing decision. With that in mind, a client’s focus during the initial phase of an engagement is typically on creating the outsourcing business case. But, before creating the outsourcing business case you must first understand the organization’s goals by conducting an outsourcing business case analysis.

Subject matter experts (SME) will communicate with clients to gather substantial information. When combined with the SME’s experience, these data points (and with their respective pros and cons), form the foundation for a number of alternative paths and recommendations. Any decision to move forward with a sourcing initiative is dependent on the quality of the deliverable and the outsourcing business case analysis.

A company should consider if it has the right experienced team and information to perform an effective outsourcing business case analysis.

Redefine Your Outsourcing Contract through Renegotiation

Category:   Negotiations / Renegotiations  Outsourcing

In a year when a record number of outsourcing contracts are due to expire, the profile and significance of outsourcing contract renegotiation is set to rise. Although re-tendering continues to get all the headlines, on the ground dozens of forward-looking firms are turning to outsourcing contract renegotiation to refine and extend their sourcing strategies. As deals get shorter, and as firms get better informed and more sophisticated in their outsourcing thinking, look out for a silent revolution in attitudes. Outsourcing contract renegotiation will no longer be a niche activity; it will emerge as a central skill for all businesses engaged in outsourcing.

Outsourcing contract renegotiation is a dialogue to agree to major changes with your existing outsourcing provider, and represents the first step in trying to redefine an outsourcing initiative and stops just short of the 'nuclear option' of re-competition i.e. going back to the market to re-tender your requirements in the marketplace. Given the massive cost and disruption that re-tendering can entail, contract renegotiation is usually the smarter way to fundamentally redefine an outsourcing contract. This article discusses the driving forces behind the growing importance of outsourcing contract renegotiation, and how you can take advantage of it to fundamentally redefine your outsourcing initiative.

Why Your BPO Deal Will Fail in the First Two Years

Category:   Strategy & Business Case  Transition & Governance  IT Infrastructure & Applications...

According to a recent Dun & Bradstreet study, 20% of all business process outsourcing (BPO) deals fail within the first two years.

This article explains why so many outsourcing deals, particularly complex, high-value BPO deals, are not delivering what was promised.

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