Outsource Issue 23 - (Page 74)

outsource: How important is innovation in an outsourcing relationship compared with other drivers like cost? Jim Stikeleather, CIO, Dell: The first goals of any outsource arrangement usually centre around either cost-reduction or performance improvement (availability, response time, reliability, etc.). As a company outsources more and more, it reaches a tipping point where they have lost the knowledge, skills and experience to effectively either innovate with their technology, or innovate their business with technology on their own. This means they are increasingly reliant upon their outsource provider for supplying both technology innovation and innovation in the application of technology to their business. This also means that the outsource provider has an increasing responsibility to understand their customers business and be alert for potential opportunities for innovation. Khem Aithani, Senior VP & Head Strategic Relationship, ITC Infotech: Innovation is a key differentiator in the nature of outsourcing relationship between the customer (buyer) and the supplier (provider). There are three types of outsourcing relationships viz. tactical, operative and strategic. All suppliers wish to become strategic to customer. Innovation is at the core of such an effort by a supplier to become strategic. Sanjiv Gossain, SVP Cognizant: According , to research we recently carried out with Warwick Business School among 250 CIOs InnovatIon CreatIon Increasingly, both buy- and sell-side organisations are trumpeting the need for innovation in outsourcing. But is “innovation” really anything more than the buzzword of the day? And if so, how can providers and users of outsourced services ensure that they practice what they preach? In the latest Provider Perspective we ask some questions at the heart of this issue – so, providers, over to you… “We must not confuse distortion with innovation.” - Chuck Jones 74 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