Outsource Issue 23 - (Page 36)

Understanding ValUe Nearly 60% of companies don’t know the value of their own outsourcing arrangements, says Ian Macgregor – so what does this cost them, and how can this situation improve? Ian Macgregor, Director, DeNové Ian is a founding Director of DeNové Limited, providing specialist business development services to companies in the Information & Communications Technology sector. He can be contacted at ian.macgregor@denove.com O 36 ● ● ver the past few years, DeNové has assisted with a significant number of outsourcing projects. Some of these have been monumental in scale, tipping the £1 billion mark. Others have seen new entrants breaking into new markets. All are fraught with known short-term risks and long-term challenges that often pass without acknowledgement in the euphoria of contract signings and the ensuing ‘honeymoon’ period. Most outsourcing deals are all about driving out cost. There is little or no focus on value creation. Occasionally companies cite the need to access new skills as a driver, but this is usually a euphemism for accessing resources in a more flexible, hireand-fire fashion. In other words, even this is driven by a desire for cost reduction. Cost-lust drives the signing of contracts and the notion of value rarely gets a look-in. Once a deal is secured, the real challenges begin. This is where the lack of collaborative focus on value creation starts to bite back. In many cases, the infrastructure and services outsourced by companies fall short of what they ideally require. Legacy “I conceive that the great part of the miseries of mankind are brought upon them by false estimates they have made of the value of things.” - Benjamin Franklin www.outsourcemagazine.co.uk http://www.outsourcemagazine.co.uk

Table of Contents for the Digital Edition of Outsource Issue 23

Outsource Issue 23
Contents
News & Comment
IT Security
Ian Collard
More Than Just A Headcount
Call Centre Technology
Social Issues
Understanding Value
Cutting Through The Noise
All In The Genes?
It’s Time For Contact Centres To Get Socially Responsible
Right From The Start
All In The Game
Relationship Management Centres
NOA Roundup
Document Management
Digital Vision
Review Ructions
Provider Perspective
A New Reckoning?
Head-to-Head
The Music of Outsourcing
Accelerating Innovation
Labour Arbitrage
Top Ten Tips
The Legal View
HfS: New outsource Partner
Online Round-Up
Sourcebites
Inside Source
The Last Word

Outsource Issue 23