Alsbridge Inc Releases New Report on Squeezing the Life out Innovation in Outsourcing Relationships
“IT and BPO procurements increasingly require innovation and new ways in which it can be brought forward by providers,” says Ben Trowbridge, founder and CEO Alsbridge Inc., “Yet clients are negotiating pricing to the point of impairing the profitability of the outsourcing provider.”
Why “Squeezing the Life out of Innovation” occurs
1. The competition and negotiation process has driven the price down to the point that the provider’s main focus has shifted to figuring out how to deliver the base business profitably. During the RFP process, there are also activities taking place within the client’s organization where the goal of IT is to lower costs, yet maintain and improve service delivery while procurement’s main measure is low cost.
2. The ongoing transition and steady state due diligence process uncovers additional investment requirements in order to innovate.
Due diligence prior to and during contract negotiations is often limited to validating resource baseline counts and documentation, and yet does not address what is necessary to upgrade the current infrastructure and the applications to deliver innovation.
3. The definition of innovation has many interpretations.
The client understands the outsourcing provider has access to many more resources, and through a larger diverse organization, can deliver more IP then what it has within its own people, but defining what innovation is and how to tap the capability is another challenge.
4. Innovation costs money. Who makes and owns the investment? What is the business case? How is it going to be implemented?
Clients often will find that innovation is shared amongst many of the outsourcing provider’s other clients and are not necessarily unique, but it is important to maintain industry competitiveness.
5. There exists a lack of collaborative client-provider governance processes.
Innovation governance management should be an extended arm of the main governance function to avoid the daily conflicts involving baseline services.
Getting the Most out of Innovation
A path to acquiring innovation effectively starts with the provider:
• Describing the path as to how it will work with clients moving forward
• Presenting examples and using clients as references
• Promoting a strong collaborative client-provider governance relationship
• Demonstrating where the client currently lacks the capability and how its current competitive position can be enhanced
• And client recognition that innovation requires provider investment
With this approach, there is greater possibility of achieving a fair and balanced agreement between the client and the outsourcing provider, while obtaining the innovation benefits that were set out at the beginning of the RFP process.
For further details on the above, download the complete report Squeezing the Life out Innovation in Outsourcing Relationships.
About Alsbridge Inc.
Alsbridge provides world class sourcing advisory and benchmarking services for the CIO, CFO and CPO. We’ve helped hundreds of companies reduce costs and get more value from their vendors. Our experienced consultants leverage proprietary tools and information databases to identify and engage the optimal vendors for your situation, negotiate best practice terms at fair market prices, and improve the way you work with your vendors. Alsbridge clients utilize the most cost effective and value added sources globally for IT infrastructure services, hardware and maintenance, network services, software and maintenance, application support and development, business processes and cloud services. Alsbridge was ranked the #1 outsourcing advisor in the world by the International Association of Outsourcing Professionals (IAOP) based on the value delivered to clients. This commitment to delivering value to our clients has made Alsbridge a distinguished member of the 2010 Inc. 500 fastest growing privately held companies in America.
3535 Travis St. Suite 105, Dallas, Texas, 75204
This release was published on openPR.
Permanent link to this press release:
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.
You can edit or delete your press release Alsbridge Inc Releases New Report on Squeezing the Life out Innovation in Outsourcing Relationships here
News-ID: 246808 • Views: 1419
More Releases from Alsbridge Inc.
Alsbridge Presents, How to Find a Hidden Vault of Gold with Indirect Procurement …
(DALLAS, Texas) September 12, 2012– Award winning sourcing advisory and benchmarking firm, Alsbridge, Inc., will be participating in the SSON Finance Transformation Summit, 19th-21st September in Chicago. This is the elite three day event for finance professionals looking at applying best-practice techniques and principles for true organizational transformation. Alsbridge will be presenting “Indirect Procurement: The Hidden Vault of Gold” in addition to hosting a pre-event workshop on optimizing your procurement
Alsbridge Presents, “Indirect Procurement: The Hidden Vault of Gold” at SIG …
(DALLAS, Texas) September 5, 2012– Award winning sourcing advisory and benchmarking firm, Alsbridge, Inc., will provide valuable insights on the financial benefits of Indirect Procurement at the SIG Regional Roundtable, September 13th in Dallas, TX. This is a one day event that includes discussions on best practices, sharing new industry standards, and networking with peer executives in a collegial, non-commercial environment. • Are you tired of the ‘O’ word? • Are you interested in learning
Alsbridge, Inc. Ranked World’s Best Outsourcing Advisor, Third Consecutive Yea …
(DALLAS, Texas) July 11, 2012 - Award-winning sourcing advisory and benchmarking firm, Alsbridge, Inc., today announced they were once again named to the list of World’s Best Outsourcing Advisors for the third consecutive year. The annual ranking is based on a number of categories including global presence, annual growth, customer reference and a demonstrated ability to meet their customers’ needs. Alsbridge is a leader the sourcing consulting market in
Alsbridge, Inc. CEO to Provide Insight at Cloud Services Dinner Hosted By Xerox
(DALLAS, Texas) July 2, 2012 – Award winning sourcing advisory and benchmarking firm, Alsbridge, Inc., will provide insight at a dinner discussing cloud services hosted by Xerox. The event is scheduled for 6:30 p.m., Tuesday July 10th at David Burke’s Primehouse at the James Hotel in Chicago, Illinois. How will the use of cloud services save you money and faster innovation? What are the hottest cloud trends, right now? Have
More Releases for Innovation
Mangu The Digital Innovation
Mangu (MG) _ - is an advancement point - a pixel, as far as the enactment of the Republic of Uzbekistan, communicating publicizing, and as indicated by its abilities a pattern being viewed as the primary virtual electronic trade security, a computerized resource. For this reason, entrepreneurs and proprietors of Brands can purchase pixels by implies cash move dependent on the lawful agreement went into as indicated by an individual
FAIE INNOVATION AWARD 2018
For hundreds of years, humanity has passed on from generation to generation valuable knowledge about the agricultural economy. Farmers from around the world work in various conditions, using a variety of methods and techniques. Every day they prove their dexterity, knowledge and ability to adapt. However, the climate and global changes of our era pose new challenges to them more often than ever before.Progress is not only taking place in
Innovation at its Best
Berlin, 17.10.2013– Model Engineering Solutions (MES) introduces latest products Quality Checker and Model Examiner DRIVE to the public at VDI Electronic Systems for Motor Vehicles. With these innovations MES once again demonstrates technological leadership in quality assurance of model-based software development. MES reveals both products at VDI Electronic Systems for Motor Vehicles in Baden-Baden (Germany), at booth No. 68 on the first floor of the exhibition hall. Shine a Searchlight
Innovation for heavy industry
Novel encoder promises an exceptionally long service life As of December 2011 Johannes Hübner GmbH, based in Gießen, Germany, will be introducing a worldwide first to the market in the form of its looper encoder ALS 40 K. Thanks to unique design characteristics this special encoder offers twice to three times the length of service life usual to date. In hot rolling mills loopers have two tasks to fulfil: they measure and
MENTOR: The Innovation Effect
Under the motto “The Innovation Effect” the MENTOR GmbH & Co. Praezisions-Bauteile KG presents innovative developments and customer specific solutions for diverse product fields at this year’s electronica, the world’s leading fair for electronics and electrical engineering. On about 90 m² exhibition space the global group of companies shows its technical developments and design concepts of mechanical, electronic and optoelectronic components for the electronics and automotive industries. The know-how of a
Innovation in Vacuum
Oerlikon Leybold Vacuum presents the new dry screw technology pump series DRYVAC at the photovoltaic exhibition Photon in Stuttgart, Germany. Such innovations of vacuum technology will contribute to the effective automatisation of solar panel mass production and enhance profitability. Plants for solar module manufacturing have to make use of all means to cut costs effectively. The changing legal aspects on solar feed-in tariffs increase the pressure on quality and costs