A great article was recently released by Phil Fersht and his group Horses for Sources (HfS).

He shares 10 parameters on how outsourcing benefited what percentage of client and also areas where outsourcing is effective, when you do a comparison between IT and Business Process Outsourcing.

Thanks Phil for such a lovely article. Worth a detailed read.

http://www.horsesforsources.com/ousourcing_performance_2013_031713

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Newsflash… Enterprises reduce costs by outsourcing, but struggle to achieve little else of value. Well, on the surface, this would still appear to be largely true, but when you rummage even deeper under the covers, you’ll soon discover it’s more the legacy IT outsourcing deals which are still all about low-cost bums on seats, while we are actually seeing a few chinks of light with BPO that could resemble what we’ve been searching for since we started this damn blog… value beyond cost (gasp!).

Outsourcing achieves its table-stakes goals and makes some progress providing value. On the strong positives, enterprises are achieving success when it comes to meeting their cost targets, globalizing their operations and even standardizing processes.  In fact, barely one-in-seven can claim to be actually dissatisfied with their meeting these goals to-date.  Also quite encouraging, is the fact that the majority of enterprises are achieving positive outcomes with higher-value areas, namely accessing capable talent and transforming processes, even though these are largely modest results for most enterprises.

Outsourcing is falling short when it comes to innovation and analytical value.  With all the puff and bluster about “Big Data” and analytics, and the pivotal need for today’s enterprises to get better at managing, understanding, an interpreting their internal and external data, it’s vital that outsourcing engagements support this capability for buyers.

Read on to learn more about our new study results on the effectiveness of outsourcing – and please share your views with Phil and his group at:

http://www.horsesforsources.com/ousourcing_performance_2013_031713

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