A new report by Warwick Business School offers seven steps for firms to follow in order to gain optimum value from their outsourcing agreements.
The 2009 Outsourcing Report, sponsored by IT services firm Cognizant, argues that organisations are failing to realise the true benefits from their investments – a common argument but one that keeps recurring because, basically, it’s still true in many cases.
Questioning over 200 chief financial officers and chief information officers the research found that less than half tried to quantify the financial contribution of outsourcing to their businesses.
“The business world is facing a new challenge: an outsourcing delivery system of high-value activities that demonstrates value over time and across business functions,” said report co-author, Julia Kotlarsky.
“The methodology we have created in conjunction with Cognizant compels CIOs and CFOs to look to achieve business transformation and innovation in their present and future services. The steps we developed, from determining the context of the outsourcing activity to investing in learning capabilities, are aimed at providing a route map to outsourcing excellence.”
The seven steps outlined in detail in the report include figuring out an outsourcing strategy, a benchmark and the context of outsourcing activity. It also urges firms to make their CIO the strategist and realise what value is over time.
To be honest it’s all pretty bread-and-butter stuff but the kind of advice many organisations still do not take before embarking their outsourcing projects. Way too many are spending vast sums without even being able to quantify the benefits.
Source: http://thefrontline.v3.co.uk/2009/12/to-outsource-or.html
