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Outsourcing Matures, Slowly

To make outsourcing deals succeed, CFOs still need to ask plenty of questions – and demand more flexibility in contracts.

Janet Kersnar, CFO Magazine
March 1, 2011

Homework before IT Outsourcing

Interesting article regarding the need for negotiations in IT outsourcing contracts.Just read an excellent article titled Do Your Homework Before You Select an IT Outsourcing Provider, http://bit.ly/oWigKp

Posted by gnanesh Gnanesh | August 10, 2011 04:53 am

Know thine enemy

"He advises companies to focus on what they will become, versus what they are today, and to remember that current noncore competencies may become a source of innovation." I would argue that this is true of those processes directly related to production and revenue generation; the method for producing the better mousetrap might not be as core a competency as development of that mousetrap, but could lead to even better mousetraps in the future. The danger, though, lies in the fear of outsourcing *anything*, even those processes that are pure overhead and are unlikely to ever be anything but. It's been my experience (as a back office outsourcer) that this fear is basically one of two things: a fear of the unknown, or a fear of loss of control. Accounts receivable, accounts payable, payroll- these are not strategic functions for most organizations, and should be obvious targets for outsourcing (as the cost savings are obvious and well-documented). Still, though, the fear persists and the status quo is my biggest competitor, and many organizations' biggest enemy. www.iprocessonline.com

Posted by Paul Terrill | March 17, 2011 11:24 am

Know thine enemy

"He advises companies to focus on what they will become, versus what they are today, and to remember that current noncore competencies may become a source of innovation." I would argue that this is true of those processes directly related to production and revenue generation; the method for producing the better mousetrap might not be as core a competency as development of that mousetrap, but could lead to even better mousetraps in the future. The danger, though, lies in the fear of outsourcing *anything*, even those processes that are pure overhead and are unlikely to ever be anything but. It's been my experience (as a back office outsourcer) that this fear is basically one of two things: a fear of the unknown, or a fear of loss of control. Accounts receivable, accounts payable, payroll- these are not strategic functions for most organizations, and should be obvious targets for outsourcing (as the cost savings are obvious and well-documented). Still, though, the fear persists and the status quo is my biggest competitor, and many organizations' biggest enemy. www.iprocessonline.com

Posted by Paul Terrill | March 17, 2011 11:24 am

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