By Mary C. Lacity
A wealthy database of over 2,200 outsourcing preparations, studied throughout sectors and geographies, and through the years, from inception, via agreement signing, to results. This ebook has extraordinary perception into the strong practices which have been confirmed potent time and again.
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Extra info for Advanced Outsourcing Practice: Rethinking ITO, BPO and Cloud Services
Our review treats all these capabilities as independent, but the most widely cited and respected papers on this topic identify a mix of complementary capabilities that lead to outsourcing success. The ﬁrst paper to meaningfully address this question was one by Feeny and Willcocks (1998). The authors identiﬁed nine interrelated capabilities, depicted as three interlocking rings. Their model has been adopted by many large organizations, including DuPont and Commonwealth Bank in Australia. The model was initially developed for ITO clients, but has since been generalized to include both ITO and BPO client-retained capabilities.
Overall, 20 of the 25 relationships found that higher levels of contractual detail led to higher levels of outsourcing success. , contract detail) was signiﬁcantly related to ITO performance. Lacity and Willcocks (2001) found that detailed contracts had a success rate of 75%, whereas loose contracts or standard off-the-shelf provider contracts had only an 18% success rate. Contract Duration. , Willcocks et al. 2004). Contract duration produced inconsistent ﬁndings in the combined ITO and BPO data.
Their article also suggested which types of contracts, incentives, measures, and pricing provisions should be used to match the strategic intent. P. Morgan, Swiss Bank, Lacity et al. 3 Outsourcing barriers Outsourcing barriers Description Number of times studied 1. Fear of losing control A client organization’s concerns that outsourcing may result in loss of control over IT or business processes 2. Concern for security/intellectual property A client organization’s concerns about security of information, transborder data ﬂow issues, and protection of intellectual property 3.