Monday, 22 October 2012

Extreme Outsourcing

My latest post Extreme Outsourcing on Outsourcing Magazine is out. Enjoy!

Short break out - the bullets:
Here are some of my bullets to a good start for a greater outsourcing. 
  • Only demand things you really need. Ask for the rest. 
  • Let the service provider explain how to solve glue, integration, add on services with their standard procedures and services instead of demanding your nitty gritty procedures. Core business for service providers is to know how to solve things in their environment: let them. 
  • When you outsource, be prepared for change. Your organisation has to change the way you work. 
  • Demand proof from the responding service providers. "How will you solve my demand?" Don’t let the service provider get away with “check” in the tick box just to win the case: it's a charade. 
  • Get support from an independent sourcing advisor. They should be able to help you analysing your needs and getting the best bang for the buck. They should be able to compare apples with apples. 
  • Outsourcing is co-operation. You have to spend recourses to procure, implement, operate and innovate. 
  • The agreement and price should benefit both you as a customer and the service provider. You’re not the winner if the service provider is doing zero or minus.
    Don’t let the price be the No 1 qualifier. The proof, quality and rumour (not references*) should be. If the price is too low, see previous bullet (there’re probably some hidden or not-included costs that will hit you during the agreement). 
  • Always consider value: bang for your business!
* A reference is a selected customer who’s satisfied. If a customer is unsatisfied it will, if wise, not be selected as a reference by the service provider. If “lying” about satisfaction the reference destroys its reputation – not wise. Rumours and reputation are better – listen to and talk with the market. 
Don’t demand Extreme Outsourcing if you don’t need it… if you’re not willing to pay for it. And why should you since you don’t need it?

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