Using IT to Accelerate the Benefits of Outsourcing & Offshoring
I n an effort to improve overall efficiency, it is not uncommon for organizations to consider embracing some form of outsourcing. When properly conceived and executed, outsourcing models can provide significant value. Sadly, these efforts often fall short or take far longer than expected to deliver sought after benefits. Many drivers contribute to this shortfall, but I suspect the most consistent is the implementation strategy. An organization's outsourcing transformation typically evolves through a series of engagement models. The initial phase often looks like a simple subcontracting engagement with a transaction company to supplier relationship model. From this model, a more general outsourcing arrangement develops. More expansive outsourcing is next and often an offshoring component might be added. Also at this point, the relationship matures to the point that the service provider becomes a partner. In this role, the outsourcing partner can offer value based on their o