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January 2010

Want to know about global sourcing? Then we'll lend you Anand... 

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Whether it's cash management in Casablanca, or payroll in Patagonia, there's one guy who'll have a Harvey Ball polished and ready for you.  Enter Everest Group's rock-loving, paint-balling enthusiast, Anand Ramesh, who lives and breathes global sourcing locations. 

Anand Ramesh 

However, before you read the excellent guest article he's submitted for us, please spend a few minutes assisting Anand with his new study to understand how companies are leveraging offshore locations – particularly for high-value services – and how the landscape is likely to evolve. Just click here to access his study, and he'll send you a summary of the "Market Vista" report in return for your efforts.  Over to you Anand...

Global Sourcing Destinations: Perspective 2010 

The ripple effects of the global economic slowdown made 2009 an interesting year for outsourcing and offshoring. Rapid growth in offshoring slowed in 2009, despite the fact that the trend of high wage inflation in offshoring markets diminished significantly.

Continue reading "Want to know about global sourcing? Then we'll lend you Anand..." » 

Posted by Phil Fersht on 01/29/2010
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The Industry Speaks, Part I: it's not all about cost anymore, outsourcing provides a powerful change-agent 

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So it's time to drip-feed the intentions and experiences of 1055 buyers, intermediaries and vendors into the global sourcing industry. 

globalizing 

We'll be discussing the results from our "Seeking the New Normal in Outsourcing Delivery" in full at the Global Services Conference on 28th January, but the nuances behind why - and how - companies are exploring sourcing delivery models, as we come out of a painful recession into an uncertain climate, need to be aired and discussed. 

There's been a lot of talk about a "New Normal", or a "Reset Economy", that things will never be quite the same as before, however, we really need to zone-in on reality to grasp what these new dynamics really entail, in order to understand how we can address them. 

To cut to the chase, most industries are in a state of profound change, where businesses are having to accomplish new levels productivity and sources of revenue simply to survive, let alone grow, in this climate.  Whether you're making cars, pharmaceutical products, providing consulting services, and so forth, the chances are there's someone else in your industry vying to deliver what you do at lower cost, and potentially better quality.  (Unless you're in banking, where it's business as usual...). 

Continue reading "The Industry Speaks, Part I: it's not all about cost anymore, outsourcing provides a powerful change-agent" »

Posted by Phil Fersht on 01/29/2010
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Searching for the cloud? Then look to the Highlands... 

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My earliest memory of outsourcing was ringing to complain about a utility bill and getting a polite, but calmly authoritative, Scottish girl at the end of the line.  I knew immediately that I wasn't going to get a ton of mileage with my quest for justice that day... 

We've spent a lot of time discussing outsourcing locations here, and one we've overlooked is Scotland.  And it's not because I'm a Brit and the Jocks don't like us very much - it's simply the fact that they don't make a great deal of noise about what a stellar location they have.  They quietly go about taking on BPO services for the likes of Morgan Stanley and Shell and let their reputation take care of itself.

So, with this year's European Shared Services Week conference being staged in Edinburgh (where I once narrowly dodged the cheese police, but I'll save that story for another time), I asked Danny Cusick to give us his best Scottish sales pitch that puts those "Invest in Wales" ads (we get force-fed on BA flights), into the shade.  And for those of you who don't know Danny, he's President of the Americas for Scottish Development International.  Over to you Sire!

Continue reading "Searching for the cloud? Then look to the Highlands..." »

Posted by Phil Fersht on 01/28/2010
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Alsbridge doubles-down on data-rich consulting with TAG acquisition 

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We've had a huge amount of debate concerning the future direction of outsourcing advisory services, and today, we can exclusively reveal a sea-change in the advisor industry landscape with  Alsbridge's acquisition of TAG, the leading life-cycle expense management advisor for network services.

Aldsbridge 
Continue reading "Alsbridge doubles-down on data-rich consulting with TAG acquisition" » 

Posted by Phil Fersht on 01/28/2010
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Weekend recap: the 'new normal' in the outsourcing delivery business 

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Thanks to all of you who participated in December's survey "Seeking The New Normal in Outsourcing Delivery". 

In total, 1051 companies gave their opinions, with a strong mix of buyers, intermediaries and providers participating to give us an unprecedented pulse on the outsourcing industry.  About time we had less prophesying and some actual hard facts on what's really going on out there...

In anticipation of releasing the results of the study later next week, I'd like to recap some recent thoughts on where the industry is headed, to help make sense of what is really happening in the industry.  And a special thanks to our friends at Global Services Media and the Shared Services & Outsourcing Network, who graciously invited their member communities to complete the survey (thank you, Ed and Sarah).  And curses to those of you who pilfered our phrase "New Normal"... you know who you are :)

The "new normal" in the outsourcing delivery business

This truly has been a pivotal quarter for the outsourcing business.  As we've discussed several times here, many services contract decisions have been delayed during the economic crisis while organizations worked out the best course of action to get through the downturn. 

In Q3 we've started to see definitive action, with many service providers meeting, and some even beating, Wall St. expectations.  But while some providers are clearly delivering, others are struggling to compete in this "new normal".

So what is this "new normal"?

Continue reading "Weekend recap: the "new normal" in the outsourcing delivery business" » 

Posted by Phil Fersht on 01/28/2010
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