Traditionally, service providers have been responsible for efficiency and cost reduction. Increasingly, clients are asking their providers to also identify inefficiencies within the client organization's internal environment that contribute to high costs, and how those inefficiencies can be addressed. Service providers are being given more leeway to find savings and improvement opportunities within the client operation, says Bill Fowler, principal consultant, Compass Management Consulting.
The tough economy has affected the outsourcing industry, along with every other industry out there.
When Ann All wrote about outsourcing trends, citing information from IT services company CSC, she found the trends largely involved buyers deriving more value for their money. Instead of the traditional tactic of trying to negotiate the lowest possible prices, however, buyers are relying on more sophisticated techniques such as outcome-based pricing.
Ann spoke to several other sources, including Unisys, TPI, Everest Group and Compass Management Consulting, to get their takes on top outsourcing trends for the next year. They offered additional insights on the increased value theme, including buyers asking their suppliers for help in targeting internal inefficiencies and developing ideas for improvement.