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'value' (2)

'Old school economy' sourcing approaches have to be put to rest

Many outsourcing contracts are still driven by the aim to cut cost. Cutting cost can be achieved by economies of scale and standardization of similar activities and assets. This means that the scope of typically outsource contracts is defined in terms functional area’s or processes (e.g. IT infrastructure support, payroll, logistics).



Many of the functional area’s or business processes being outsourced can often indeed be split off without large consequences for the retained… Continue

Added by Francois Zielemans on April 23, 2010 at 3:08pm — No Comments

IT outsourcing with business value in mind

A streamlined IT value chain with capable actors can provide more added value at a lower cost level in a sustainable manner. This requires the IT organization to understand the fundamental aspects and dynamics of the business processes. Understanding how the Business makes money and which risks it faces is for many IT organizations however still a major challenge. Most IT organizations therefore still base their sourcing decisions on traditional IT silo’s.



Read the whole article… Continue

Added by James Williams on October 29, 2009 at 6:16pm — No Comments

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