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| New Year Wish List for the Outsourcing Industry |
| Rick Simmonds, Partner, Alsbridge Europe |
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Now is the time to be reflecting on the achievements and disappointments of 2006, and to look forward to the opportunities to come in 2007. So, in keeping with the season, I have set out below my top ten outsourcing wishes for the New Year – with a hope that they be adopted as New Year resolutions by all the industry players!
- That when clients and supplier say “partnership” they really mean it, and that they reinforce it with the right behaviours: openness, honesty, problem-solving and risk-sharing.
- That suppliers actually become pro-active in bringing insights and new developments to their clients, rather than just delivering to the letter of the contract.
- That clients judge their suppliers on the basis of the service they have contracted and paid for, not against an unreachable theory of perfection, or against a mythically idyllic pre-outsourcing past.
- That lawyers help their clients to identify and contractually manage the risks inherent in outsourcing arrangements, and don’t indulge themselves in arguing the finest points of drafting like medieval scholars debating how many angels can stand on the end of a pin.
- That sourcing advisors recognise that their role is to support their client to create a deal that works, as quickly and pragmatically as possible - not to prolong the process or to tweak the tails of the suppliers for kicks.
- That as much time and energy is devoted to the back part of the contract as to the front part – in other words, that all parties recognise that the service, pricing and other detailed schedules are as important, if not more so, than the contractual terms and conditions. And whilst we are on this one, that as much quality management time and energy goes into the management of the contract and the governance of the relationship as went into the negotiation stage.
- That the business case is jointly developed and openly understood by both parties, and that they do not proceed with the deal if the fundamental economics do not work for one or both of them.
- That outsourcing deals are structured to cope with the inevitable changes impacting the client, the supplier, and the business and technical environment they operate in – in particular that contract lengths are based on a term which can be reasonably planned for, that pricing structures do not mortgage the future of either party, and that exit arrangements allow the client to terminate on fair, not punitive, terms.
- That offshoring loses its negative connotations and is recognised for what it is – part of the long-term continuum of globalisation in goods and services, allowing clients to source services from wherever offers the best balance of quality, cost and risk.
- And finally…that the market continues to develop, mature, and grow, bringing to client organisations the benefits of professional and transformational service delivery, sourced from the best locations in the world, and packaged in the most constructive deal shapes.
Wishful thinking of course…but the best suppliers, clients, lawyers, and advisors already deliver this and more.
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New Year Wish List for the Outsourcing Industry
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By Rick Simmonds
Partner – Alsbridge Europe |
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Why do organizations outsource and what are they seeking to achieve? Both analyst research and practical experience lead to clear conclusions...
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