The following article appeared in yesterday’s FT.
http://www.ft.com/cms/s/0/f15e11ba-6594-11de-8e34-00144feabdc0.html?nclick_check=1
The author notes that there is a key difference between outsourcing of ‘unified communications’ and more process-driven outsourcing because ‘the managed communications provider aim to maintain a strategic and flexible relationship, rather than just concentrating on meeting pre-agreed cost saving targets’.
To me this sounds like it was lifted straight from a Service Provider sales catolgue. There is no doubt that as organisations look to outsource some parts of the business there are real challenges in understanding and defining clearly exactly what service the providers will deliver. Nevertheless this activity at the start of the outsourcing project is vital. The subtext that because something is strategic then there will be no precise service definition or service level is extremely dangerous. Whilst it is true that firms will use service providers because they have no competency in a specific area or they want it done in a better way – it is also true that cost is ALWAYS a factor in outsourcing decisions. It may not always be cost reduction but it is always cost control. I would urge any of you to be wary of ’strategic outsourcing’. Do it but keep measuring and monitoring your Service Level Agreements.
