dcsimg

Lesson from Outsourcing Trenches: Avoid Tunnel Vision

Ann All

Outsourcing strategies that emphasize process improvement and other business benefits are generally more successful than those focused solely on saving money.

 

If there is a recurring theme to this blog, that just might be it.

 

I wrote about it here, passing along advice from organizations with real-world outsourcing successes. And here, sharing wisdom from smart analysts at Deloitte and Compass Management Consultancy.

 

This ZDNet Australia piece, in which several executives from banks Down Under share their outsourcing experiences, has an especially interesting take on the cost issue. Patrick Eltridge, who until July was Westpac's consumer CIO, says that too much upfront emphasis on cost can destroy the "competitive tension" necessary for a healthy outsourcing relationship.

 

Many service providers respond to price pressure by saying they can offer lower costs if a customer commits to a longer and/or more exclusive deal, says Eltridge. While it may be tempting to make this kind of a deal, most experts agree that shorter, smaller contracts offer a better way of mitigating outsourcing risks. There are exceptions, of course, several of which are outlined here.


Subscribe to our Newsletters

Sign up now and get the best business technology insights direct to your inbox.


 

By submitting your information, you agree that itbusinessedge.com may send you ITBbusinessEdge offers via email, phone and text message, as well as email offers about other products and services that ITBbusinessEdge believes may be of interest to you. ITBbusinessEdge will process your information in accordance with the Quinstreet Privacy Policy.




Add Comment      Leave a comment on this blog post

Post a comment

 

 

 

 


(Maximum characters: 1200). You have 1200 characters left.

 

null
null

 

Subscribe to our Newsletters

Sign up now and get the best business technology insights direct to your inbox.


 

By submitting your information, you agree that itbusinessedge.com may send you ITBbusinessEdge offers via email, phone and text message, as well as email offers about other products and services that ITBbusinessEdge believes may be of interest to you. ITBbusinessEdge will process your information in accordance with the Quinstreet Privacy Policy.

Subscribe to our Newsletters

Sign up now and get the best business technology insights direct to your inbox.


 

By submitting your information, you agree that itbusinessedge.com may send you ITBbusinessEdge offers via email, phone and text message, as well as email offers about other products and services that ITBbusinessEdge believes may be of interest to you. ITBbusinessEdge will process your information in accordance with the Quinstreet Privacy Policy.


×
We have made updates to our Privacy Policy to reflect the implementation of the General Data Protection Regulation.