12.30.07

A 21-Gun Salute - Resolutions for Customers, Suppliers and Advisors

Posted in Best Practices, Governance, Negotiations, Outsourcing at 6:22 pm by Gary M. Zeiss

Here is my annual list of New Year’s Resolutions for those of us in the outsourcing industry.

For Outsourcing Customers

1) I will dedicate adequate resources to managing my outsourcing deal.

2) I will send out RFP’s only to vendors with a chance of earning the business.

3) I will set service levels that reflect my true business needs, not pie-in-the sky service levels that cannot ever be met.

4) I will avoid the end-of-year search for pricing concessions to cover up my own bad budgeting.

5) I will listen to my outsourcing vendors for ways that I can improve my business and its interface with my outsourcing vendors.

6) I will pay regular attention to my outsourcing deals and proactively work with my vendor to solve problems.

7) I’ll refrain from blaming the vendor for things that are my company’s fault, but I will be honest with my vendor when it is their fault.

… And for Outsourcing Suppliers

1) I will make quality customer service my highest priority.

2) I will only offer pricing that is fair - and will not sell outsourcing services as loss-leaders with the expectation of “making it up later.”

3) I will accept responsibility for my actions when performing the services.

4) I will resist the urge to overdiscount.

5) I will listen to my customers for ways by which I can improve my services.

6) I will manage my outsourcing deals to optimize customer service, not short-term revenue.

7) I will take real measures to reduce turnover and keep my workforce happy and interested in the work.

… And for Outsourcing Advisors

1) I will reduce the complexity of deal structure.

2) I won’t “ride” deals to maximize my profitability (at the expense of my client).

3) I will actually watch expenses and costs.

4) I will “think outside of the box” to help my clients develop flexible deals that will bend without breaking.

5) I will reign in runaway projects an keep my staff under reasonable control.

6) I won’t make hyperbolic, self-serving public statements about future trends.

7) I will provide my customers with deal summaries and other information that will help them manage their deals.

And for all of us…

Let’s drop the hype and focus on real business and real deals! 2008 will be as good as we make it!

12.23.07

How to Save the U.S. Outsourcing Business

Posted in Best Practices, Outsourcing, Posts at 8:21 pm by Gary M. Zeiss

In one of my favorite recent articles, Victor Gomez of the Dallas Morning News discussed the troubles faced by the big three Dallas-based outsourcing vendors, EDS, ACS and Perot. All are feeling the heat from Indian-based vendors, and are blaming the cost differential for their problems.

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12.17.07

Will Customers Pay More for Customer Service?

Posted in Best Practices, Outsourcing at 7:47 pm by Gary M. Zeiss

In an interesting article appearing on cNet.com on December 13, Steve Tobak asks the question, “Would you pay more for better service?” In the article, Mr. Tobak implies that most Americans wouldn’t pay extra for domestically-delivered service (assumed to be superior) than they would for off-shored service (assumed to be inferior).

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12.08.07

Outsourcing - The End is Near?

Posted in Best Practices, Governance, Outsourcing at 11:45 am by Gary M. Zeiss

The life cycle of outsourcing as a trend is following the same pattern as recent business fads. Certainly, the U.S. domestic deal flow, which has been weak at best, is showing its age. I expect that European outsourcing, which was the major hot growth area in 2007 - will face a similar fate in 2008 (late adoption does not necessarily result in late abandonment). This doesn’t bode well for those of us providing services in this industry, although it may bode well for the global economy in the long haul.

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