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Words of wisdom from a serial outsourcer

Bradley de Souza | June 17, 2014
Focus on risk and reward. In some cases, using two partners in tandem can create positive competitive tension.

Stage 3: Move to an outcome based model.

Once the capability has been optimised and then run by the partner for a minimum of 6 months, a move to an outcome based model can be suggested. The goal here is to drive productivity, performance and also shared risk.

Going beyond stage 1 is a key indicator of a successful transition to the partner. Some of the benefits include lower cost, increased productivity, reduced time to market and greater scalability.

Modern partnering isn't just about moving simple tasks to a partner. Complex roles and functions such as project management, technical design, incident management, etc., are also being moved to partners offshore. It is important however to keep things simple at the start.

In order to drive successful outcomes, organisations are using models which focus on risk and reward. Using two partners in tandem can create positive competitive tension. Some organisations use contractual undertakings that effectively create de-facto joint ventures. Whichever model is chosen, it's important to build the right construct to get the results that align to the strategic vision of the company.

Gone are the days when companies could afford to do everything. Recognising the need to partner and the value that partners bring is key to driving value, growth and agility.

 

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