Transformational Outsourcing: Best Practices - Market Research Reports

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Transformational Outsourcing: Best Practices

Description:

The notion of transformational outsourcing is marketed less today by vendors than a few years ago. We think there are several reasons for this. One of the main reasons is that most outsourcing contracts focus on cost savings - transformational outsourcing remains the exception, rather than the norm, in the market.

Nevertheless, transformational outsourcing represents a service offering for which a number of clients have the need, and it is here to stay. Transformational outsourcing makes sense to vendors: outsourcing contracts usually have a lower margin than project services. It offers the possibility of combining long term and recurring revenues with more profitable transformational work.

The importance of transformation in IT outsourcing (ITO) - i.e. infrastructure-led outsourcing and application management - differs greatly from other forms of outsourcing, such as BPO and network-led outsourcing.

Contents:

Table of contents

Key messages

Transformational outsourcing in context

Transformational outsourcing today

IT outsourcing
Infrastructure-led outsourcing
Application management
BPO

Client strategies

Defining transformation
Partnership versus lock-in
Complexity versus transformation
Change management and governance versus technical aspects
Goals versus reality
Transformational outsourcing adds complexity

Vendor strategies

Playing to strengths
Codifying best practices

Vendor approach to transformational outsourcing

Orange Business Services - network-led outsourcing
Sopra - application management
Capgemini - IT outsourcing
Arinso - HR BPO
HP - infrastructure-led outsourcing
TCS - BPO
IBM - BPO

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