Outsourcing’s Secret Sauce

Deloitte - Outsourcing Today and Tomorrow - Nov 2012Deloitte’s report Outsourcing, Today and Tomorrow, just published, attempts to define the secret sauce for outsourcing. The authors are engagingly frank:

“We wish we could wrap up this paper with a pithy summary of the secrets of effective outsourcing, boiled down into a neat list of easy-to-digest bullet points. Unfortunately, if such secrets exist, no one has yet discovered them.”

But they go on to suggest ‘one possible candidate’ for outsourcing’s secret sauce:

“The recognition that outsourcing, like other complex business practices, is a discrete business discipline requiring specialized skills that cannot easily be developed on the fly.”

Which may be true – let’s agree it’s one of the essential spices – but it overlooks an essential ingredient, arguably the foundation for outsourcing’s secret sauce: a platform for effective collaboration, which surely lies at the heart of successful outsourcing.

This platform provides a common language: end-to-end process, expressed in the language of the business, not IT-speak. It is comprehensive, not just IT-oriented. It provides integrated perspectives, not just a repository of process fragments. It is wrapped within a robust governance framework to enable process stakeholders – across the enterprise and including especially IT – to effectively manage change. And, crucially, it enables deployment to process users in a way that is personalised, intuitive and engaging.

The Deloitte report – which polled 100+ sourcing professionals earlier this year – provides ample evidence that this need for a common language, a framework for more effective collaboration, is real and growing:

Outsourcing is big – a $480bn industry this year – and set to expand. So too is offshoring.  But operational roles and responsibilities are often amazingly unclear. [There is far too much focus simply on contractual negotiations]

Cloud will vastly increase its complexity. [as will Social, Mobile and Big Data]

Churn is increasing: half of clients have terminated contracts for convenience, sometimes to insource, most often to re-outsource. [Managing complex dynamic multisourced service delivery environments is becoming the norm]

Innovation and sustainable success in continuous improvement can’t work without it. [Innovation and continuous improvement is the area where organizations report that they are least effective in working with service providers].

Related Posts

21 Aug 2012    How To Simplify Global Shared Services

20 Jun 2012    Process: The Emerging Global Business Language

© Text Michael Gammage 2012

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s