Outsourcing and value for money improvement--incompatible?

Why would an outsourcer ever want to offer its clients value-for-money improvement?

Perhaps before we answer that question, we should consider what value-for-money improvement is and what leads to it.

To me, value-for-money improvement means I pay less for the same thing or I pay the same and get more. And most..... Read more »

Tags: Improvement, arbitrage, outsourcing company, profit margin, revenue

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The link between academia and outsourcing

One of the surest signs that an industry or profession is maturing is its entry into the university realm. This can be either through courses or university professors publishing research papers and books on the industry/profession.

In the case of sourcing, both of these are evident.

The Carnegie Mellon University's efforts in..... Read more »

Tags: e-Sourcing, Carnegie-Mellon University, co-author, Bob Kennedy, Services Shift

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Have we started to turn the corner?

I'm back from some surgery--something we'll all be pleased to outsource to experts!

Making predictions is very risky, especially in today's economic climate. However, some recent trend data may be giving us some hints.

We typically look at quarter-on-quarter or year-on-year performance, but a slightly different perspective yields something interesting. In its..... Read more »

Tags: Period, Outsource, TPI Index, Total Contract Value, TPI

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Neverending cost cutting objectives

In the current economic climate, cost cutting measures are still at the top of the agenda for many firms, so I thought it might be good to revisit this topic from a few blogs back.

Previously, I wrote about cutting costs through service volume reductions, as well as service scope reductions...... Read more »

Tags: Cost, value chain, TPI, pricing strategy, service provider

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2009: Racing to subsidies

Last time, I noted a trend for 2009 in relation to increased government activity in the sourcing industry. As we observe government reactions to outsourcing in this time of severe economic stress, two key issues seem to be repeated.

For countries/regions where there are many buyers of services, there is government..... Read more »

Tags: Subsidy, Tax, Business Model, Outsourcing Industry, outsourcing

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A look ahead at 2009

As I mentioned in my previous post, having the 2008 sourcing industry information available, and in particular the "tale of two halves", it's interesting to offer some thoughts on what we might see in 2009.

As the global economic situation has moved from uncertainty to weakness to potential fracture, how will..... Read more »

Tags: revenue, IT outsourcing, financing, service provider, information technology

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2008 in review: Ups and downs

Just as I did last year, with the sourcing market results in for the full year, it's worth considering how things have gone in the Asia-Pacific region and around the world.

The headlines as reported by TPI are:
With a Global TCV of nearly US$90 billion, 2008 value exceeded 2007..... Read more »

Tags: Asia-Pacific, EMEA, outsourcing, financial, United Parcel Service Of America Inc.

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Challenge balancing security checks and costs

Satyam has been big news for the last few days. Certainly the news has been disturbing and causes people to pause and think; as it should.

This certainly wasn't the first and unfortunately, is not ikely to be the last apparent corporate governance failing. In fact, in the last few weeks..... Read more »

Tags: Satyam, Security, Bernard Madoff, Wipro Technologies, auditing

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Reducing value leakage: back to basics

Negotiating a good contract, managing volume reductions and managing service reductions are all important steps in terms of sourcing, especially when times are tough.

However, an area that often gets overlooked is value leakage in existing sourcing relationships. TPI research through its Governance Excellence Program has shown that:
1...... Read more »

Tags: Outsource, Service Management, outsourcing management team, performance, outsourcing

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Cutting costs sensibly

I've been quiet for a while, watching how people in our industry will react to the ongoing global economic turmoil.

One reaction that is gaining in popularity is cost cutting. In many ways, this is both rational and something to be expected. The deeper question is how to go about doing..... Read more »

Tags: Service, Negotiation, pricing strategy, service provider, strategy

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• Where is BPO in Asia-Pacific?
• Would you work for an outsourcer?
• Is a giant awakening?
• Inexperienced practitioners help or hinder growth?
• Challenge balancing security checks and costs

2009

2008

2007

2006

• Could this be the most critical budget for India?
• Shhh, but I ain't no Apple fanboy
• Outsourcing and value for money improvement--incompatible?
• So you're the boring guy
• Should India now look forward to unique ID cards?

Michael Rehkopf

Michael has more than 20 years of experience in operations, strategy and sourcing covering all major parts of the globe. He has also worked for Australian, Canadian, German and Japanese companies in both business process outsourcing and IT outsourcing.
Michael's industry experience includes the financial services, manufacturing, telecommunications and travel sectors. He leverages this diverse industry experience and his university background in accounting, IT and his Master of Dispute Resolution, to assist clients in the development of business strategies and the implementation of sourcing strategies. These include the associated evaluation, negotiation and organizational change.
Michael is currently a partner at TPI, the world's oldest and largest sourcing advisory firm. Prior to joining TPI, Michael held leadership positions with Siemens Business Services, OpenPlus International, Mitsubishi Electric and Netron.