Costs of Outsourcing Jobs
Cost remains a driver in deciding outsourcing transactions.
But the difference between one service provider’s costs versus another is very small and might no longer be considered a differentiator.
Uh oh, what do we do now?
Similarities in provider’s costs and services breed indecision and client confusion.
Providers cannot afford to let this happen or heads will roll. Their heads!!
Because there are not enough tools (throwing more people at the processes is no longer effective) to effect a real change in the basic cost structure other outsourcing business models, which include other services and outsourcing locations are being considered for adoption.
Additionally there is a different philosophy being advocated by many of the large service providers. The philosophy is:
“We need to manage outsourcing as a business function, not just as an activity.”
That being said:
Providers need to bring innovation, continuous change, relationship management and industry acumen (to assist with innovation) to the client. A sharing of big ideas….
Question-Where are the service providers hosting the clients work?
Response-All over the planet.
Question-What outsourcing services does a service provider need to develop?
Response-Change management, transformation, relationship management, process audit, outcomes beyond costs, drive innovation (together), increase analytics, more industry acumen.
Get your outsourcing stories/resumes in synch with the new outsourcing requirements.
Get your success stories in synch with the new outsourcing services.
Get yourself mentally prepared to discuss your asset value to the client.