Eclectic Curiosity

Posted on January 17th, 2003, by Steve Hardy in Archives, Uncategorized. No Comments

Outsourcing is of course a major aspect of creative services (and it is also becoming an increasingly important aspect of ideative services). As long as there are projects to work on and free agents or studios to work on them there will be outsourcing. Here are some of the main trends in this area, as identified by The Outsourcing Institute.

-Many companies are setting corporate policy and strategy to embrace outsourcing and to ensure consistency of the application of outsourcing across business units.

-Companies are placing greater emphasis on incentive compensation packages that focus on delivering cost effective and efficient services. Compensation plans are being revised to include the consideration of outsourcing as a part of the incentive package.

-There is an increase in requests to train and educate business units on the outsourcing process. This provides the empowered business units with the background needed to deliver the desired results to the organization.

-There is a growing desire to accelerate or “fast track” the outsourcing process by streamlining the process using developed tools, templates and guidelines while ensuring consistency of application and managing risk.

-More and more companies are going outside of their organizations to firms that can build the tools, templates and guidelines, and provide the knowledge transfer and retainer based services to help build internal competency.

-Many corporations are creating internal sourcing groups to develop tools, templates, and guidelines to empower business units to look at outsourcing as a viable alternative to delivering cost effective and efficient services. The key words here are “look at,” not require or mandate.

-As part of the creation of this new internal business unit, organizations are taking a close look at managing the supply chain of service providers and including roles relative to that function. This becomes an even more important task as the relations with service providers encompass multiple years and services and separate outsourcing contracts could be negotiated with the same service provider in different parts of the globe.

-The new business unit also plays a greater role in governance. The unit participates in governance meetings and takes an active role in not only providing sourcing guidance, but in providing consistency of outsourcing contracts and service supplier management.

-Consistency is a key driver and objective. In this regard, organizations are creating repositories of information such as service levels, terms and conditions, responsibility matrices, contracts, service suppliers and so on, to assist the empowered business units with achieving the goals and objectives of considering outsourcing as an alternative to delivering cost effective and efficient services.

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