Things to consider while outsourcing

The major driver for outsourcing has been the availability of low cost resources offshore. Recently, large enterprises are reconsidering their outsourcing strategies. Here are a few things to consider for the outsourcing contract to yield a win-win situation 1. Quality of the deliverables: When only looking to cut costs, the customer might settle for the […]

Best practice in an Outsourcing contract for buyer protection in provider’s M&A

As the outsourcing vendor landscape continues to shift through mergers and acquisitions, how can buyers build their contracts to protect what they envisage in the relationship despite a change in provider ownership? On one level, the service description in the contract or SOW or in a procedures manual documents the agreed approach. If there’s something […]

Renegotiating IT Outsourcing Contracts

Need Outsourcing an activity is done when there is a value addition in doing so, viz; Better service quality Cost benefit  and Manpower benefit Lesser tension in performing the particular activity Outsourcing an activity does not absolve the parent organization / person from the ultimate responsibility of delivery in terms of quality & timeliness. Hence […]

Vendor stratification

Vendor stratification is proposed as a framework for understanding the evolution of preferred vendor programs. Vendor stratification refers to a hierarchical division of a company’s set of qualified vendors into distinct groups. We should be able to recognize important difference between the qualified vendors and use the differences to establish hierarchical rankings of the vendor. Companies […]

Governance in IT Outsourcing

Today companies are revamping / refining their IT strategies to gain maximum advantage from an outsourcing deal. This improvement also includes governance aspect. Ideal governance model consist of three pillars namely Service Level Agreement (SLA), Status Meeting between both client and vendor and Innovation. Service Level Agreement (SLA): Being a quantifiable feature this pillar plays […]

Vendor Management Office

A vendor management office (VMO) is an internal unit within an enterprise that is charged with evaluating third-party providers of goods and services, supervising day-to-day interactions and managing longer-term relationships. In some cases, an IT vendor management office is established to create and monitor vendor relationships with regard to IT, including establishing the organization’s proper […]

Road to Success – Strategic Sourcing

No sooner did the smart organizations thought they had squeezed the last ounce of savings from their supply bases, enlightened purchasing and supply organizations were already saving even more by focusing more on process than function. New-style purchasing departments lead their organizations to join with suppliers to spur innovation, apply joint expertise to product development, […]

Outsourcing contract prices to drop

In the light of the current economic scenario worldwide, the outsourcing contracts are hard to come by. The IT vendors need to come up with innovative ways to grab the contracts in such a cut throat competitive environment. Price is of the main reason, if not the only one, for outsourcing contracts. Since the global […]