Outsourcing Governance and “Who Owns Supplier Performance Management?”
What the $^^@#$ is supplier performance management? Procurement? Operations? That’s exactly the discussion Tim Cummins relates in his latest discussion on relationships and vendors. Evidently, at the close of International Association for Contract & Commercial Management (IACCM), the final executive roundtable debated this issue. As Tim says, they “questioned whether it is a role that Procurement groups are equipped to perform.”... [Read More...]
Offshore Outsourcing Vendor Governance Organizations
Does Your Offshore Outsourcing Governance Organization Design Support Your Organizational Objectives? So, I’ve definitely been stirring the pot over the last few weeks. I’ve exposed the errors in the much celebrated Black Book of Outsourcing, shown that the business of outsourcing certification is big business, and explained why vendor management organizations are a bad idea. This much skepticism could be a bit karmically unhealthy,... [Read More...]
Outsourcing DIY: Less Expensive, Less Scary, More Effective
Manage Your Own Outsourcing Project Stephanie Overby’s CIO/Computerworld article is certainly thought-provoking. Essentially, Overby eschews spendy consultants for analysts and independent consultants, pumps up the smart employees already working for a company, recommends companies take advantage of less expensive templates available online, and finally suggests companies start with smaller projects where vendors get the opportunity to prove... [Read More...]
Vendor Management Differentiates in a Commoditized Offshore Outsourcing Industry
What Differentiates Your Vendors? Phil Fersht’s fabulous article on the commoditization of the offshore outsourcing industry is definitely thought provoking. He argues that vendors largely have the same operational capability and clients aren’t ready for transformation, which makes the offshore vendors with the largest marketshare the odds on favorite to win in the future – if they can transform their labor arbitrage-based model... [Read More...]
Desperate Measures Include Outsourcing?
Do Budgets Cause You to Outsource for the Wrong Reasons? The Wall Street Journal ran an interesting article this morning in which Infosys’ COO says, ”Past patterns suggest that when budgets are under pressure, clients do all kinds of things to get more with less, like outsourcing and offshoring.” Ah, Shibu, we love your honesty and we are certain you are right. Sadly, “budgets” do more to drive outsourcing than they... [Read More...]
Removing Key Vendor Personnel in Outsourcing Relationships
Dealing with under-performing or culturally incompatible vendor personnel is one of the most delicate matters facing vendor managers. Certain vendor personnel are critical to operational success. When they don’t deliver, performance deteriorates. When friction or distrust develops, relationships go sour and communication doesn’t freely flow. Frankly, it’s an awkward situation. The problem is that you’ve outsourced your... [Read More...]
Good Vendor Managers: A Scarce Commodity
Earlier this week we posted an article describing vendor management job descriptions. Yesterday day, Tim Minaham’s article on the Supply Management Talent Crunch led us to reflect on the “talent crunch” also facing vendor management. Let’s face it – good vendor managers are hard to find. Why? The positions require deep operations experience. The positions require great relationship-building and alignment-building... [Read More...]
When Roads Are Rocky: Dispute Resolution in Outsourcing Relationships
The valley of despair in an outsourcing relationship is when vendor managers consult with their legal counsels. Disputes that go “contractual” (the vendor management version of “nuclear”) can irreparably damage a relationship. Your job as a vendor manager or vendor account manager is to ensure the client-vendor relationship never sours. However, what do you do when it does? Today, we take a deeper look at dispute resolution. ... [Read More...]
Impact of Foreign Currency Exchange Rates on Outsourcing
One of the most challenging aspect most outsourcing relationships are now facing is the impact of the declining value of the US dollar in the face of the growing foreign economies in India and the Philippines. When the US economy was stable with gradual growth, the impact of foreign exchange rates was manageable. However, with divergent directions, many vendors are faced with significant financial challenges – and they aren’t hesitating... [Read More...]
Vendor Management Job Descriptions
Job descriptions are difficult enough to write when roles are clearly defined. The ambiguity of vendor management organizations and the fuzzy lines that separate them from procurement, finance, project management, business analysis, and operations organizations make vendor management job descriptions many times more difficult to write. The importance of attracting and selecting the right talent to manage major outsourcing or service vendors is... [Read More...]
