Innovation in Outsourcing & Reserach
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Session 37 at the Nearshore Executive Alliance Board Meeting. Innovation in Outsourcing & Reserach by HfS Research Ltd
Innovation in Outsourcing & Reserach
- 1. yet, to date, organizations have received modest results from outsourcing initiatives Source: HfS Research and the London School of Economics Outsourcing Unit, 2011 Sample: 347 Buyers of Outsourcing Services
- 2. Governance exhibits rarely drive innovation. Governance exhibits are often little more than management committees, escalation procedures, and meeting schedules. My contracts governance exhibits are the lynchpin of the subset of governance processes that evolve services to match our strategic objectives. (N=56) 40% 38% 30% 29% 23% 20% 10% 7% 4% 0% Strongly Agree Agree Neutral Disagree Strongly Disagree
- 3. and contract incentives cannot drive innovation, either. Contract incentives rarely sufficient to drive evolution or innovation: 損Most focus on transaction efficiency goals 損Few allow for automatic changes to increase established goals My contracts economic incentives are sufficient to drive an evolution of services to match our strategic objectives. (N=48) 40% 35% 30% 25% 21% 20% 13% 10% 6% 0% Strongly Agree Agree Neutral Disagree Strongly Disagree Source: HfS Research, 2011
- 4. Buyers say they want innovation, but they really want to drive efficiency and cost reduction Source: HfS Research and the London School of Economics Outsourcing Unit, 2011 Sample: 347 Buyers of Outsourcing Services
- 5. Organizations need to establish an environment that promotes innovation. Common, Open Business Shift in Value Shift in Pricing Plan Willingness to Evaluate New Forum to Discuss Strategic Commitment to Making Technology and Processes Direction Decisions Timing Dedication of Resources Willingness to Take Risks