Outsource Issue 22 - (Page 111)
THE BACK END SOURCE BITES
Sourcebites
Each issue we ask outsourcing community members to tackle big issues in bite-sized (ok, tweet-sized) chunks. This time around we address a very big issue indeed: what are the primary causes of outsourcing failure?
When your primary focus is saving costs and not for deriving value. The margins get pushed, quality of resources degrades and so does the quality of output. Rishi Khare (via LinkedIn) A) Giving importance only to finance. B) Not making wide, clear publicity. Ramakrishna Kopaka (via LinkedIn) A lack of a proper change management program - you need employee engagement and a culture change as well as process change @DOHR Outsourcing fails when it’s just about cost-cutting - consider outsourcing to help you launch products or enter new markets. Tony Collins, OPAL (via email) 1) Confused or conflicting requirements. 2) Misplaced hope that a third party can fix a broken process on your behalf. 3) Not keeping the supplier’s feet to the fire. Robert Gaunt (via LinkedIn) Clients lack the skills and infrastructure to manage service delivery when the client does not directly manage people delivering service. Joe VanLoy, EquaTerra (via email) Failing to manage customer expectations. This stems from communication failure between sales and service delivery teams. Robert Rutherford, QuoStar Solutions, (via email) I understand me very well but can you understand me very well? No one can understand me in deep. The same applies to outsourcing also. Richin Jose (via LinkedIn) Poorly defined goals, limited communication between the provider and the client and a lack of contract management. Colin Gray, DDC Outsourcing Solutions (via email) A) Not defining requirements clearly B) Failing to select the best candidate for the job Saif Bonar (via LinkedIn) Failure to align contract metrics with corporate goals; not celebrating success together; outsourcer not sitting same side of table as client. @davidnotharry Failure is caused by either too many restrictions or to much freedom given to the outsourcing company. @Panamsys 1) Lack of governance and metrics 2) Vendor - Customer relationship vis-a-vis partnership, implied trust 3) Pragamatism vis-a-vis contract Prashant Walia (via LinkedIn) Failure to communicate expectations and share information in a transparent manner will lead to failure. Kevin Betts (via LinkedIn) Weak governance & conflict resolution, not one-team orientation, incomplete transition and an ineffective retained organisation. Sandeep Thawani, Mahindra Satyam (via email) For small business: 1) Failure to plan. 2) Not researching cultural differences. 3) Unrealistic expectations. Joe Knapp (via LinkedIn) Outsourcing usually fails if the outsourcing company does not meet the requirements of the client. Julie Lews (via LinkedIn) Lack of integration – outsourcing is often seen as an after-thought, rather than integrated into the full marketing communications planning. Stella Jones, B2B Contract Marketing (via email) 1) Unrealistic Expectations 2) Unclear Key Performance Indicators (KPI) 3) Failure to realize that it will take time to get it right O. M. Enaohwo (via LinkedIn)
GET IN TOUCH
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Table of Contents for the Digital Edition of Outsource Issue 22
Outsource Issue 22
Table of Contents
Shutting the Door?
Q&A: Deborah Kops
Colombia
LPO
Editorial Board Roundtable
Head-to-Head
HR Trends
Long Live AMS!
The Provider Perspective
Platforms Make Sense in the Cloud!
NOA Pathway
Case Study: Kingâs College Hospital
Egypt
Silver Lining
Roundtable Write-Up
Case Study: Nokia & Hyphen
Alan Leaman
Leah Cooper
Kay Formanek
Paul Awcock
News & Comment
The Legal View
NOA Roundup
Online Roundup
Letter to the CEO
Letters to the Editor
Sourcebites
Inside Source
The Last Word
Outsource Issue 22
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