Cyber-attacks have topped the list of biggest threats to business for the second year in a row, followed closely by data threats and an unexpected IT/telecoms outage – according to the fifth annual Horizon Scan Report published by the Business Continuity Institute (BCI) in association with BSI (British Standards Institution).
Today companies are being exposed to a changing business landscape due to macro-economic factors, greater-than-ever globalisation, and rapid advancements in technology.
The global economy is recovering but still sluggish. Companies have been engaging in significant cost savings and restructuring initiatives over the past several years to meet shareholder expectations. But business leaders are now beginning to realise that they cannot cut their way to growth. So companies now have a greater appetite to invest in developing new products, services and market reach.
Cloud-based contact centres have taken off in a big way. With business process outsourcers (BPOs) needing flexibility and scalability to respond quickly to changing conditions, the cloud is best placed to enable these desires.
The latest research from the Cloud Industry Forum has found that 46 per cent of UK-based organisations use cloud-based contact centres today, a figure that is expected to increase to 68 per cent over the next few years. These results confirm the value of cloud-based contact centres and their ability to transform customer service and engagement.
Outsourcing providers consistently create and deliver quality services that are capable of beating in-house offers across the board – yet many organisations remain reluctant to use outsourcing to its full potential.
This tends to be the common complaint from outsourcers.
The world of sourced services is developing rapidly. Gone are the long-term, rigid forms based on lease funding and assumptions of slothful corporate evolution. The cloud, rapid innovation and globalisation have put paid to that. So what emerging trends of the sourcing market are noteworthy for commissioning directors?
As companies have started to internalise (and for that matter, practice) the triple bottom line concept of sustainability, the focus now has shifted to issues beyond their walls of operations and manufacturing. In the world of outsourcing, globalisation and interdependence of suppliers, companies must look into making their supply chains more sustainable.
All too often, businesses are faced with bold promises about the services they will receive from their outsource providers; they are drawn in by the “ideals” pitched to them and ultimately, find themselves disappointed with the outcome as those services fail to live up to expectations.
NEW YORK: The international outsourcing community is in disarray following last night’s shock announcement by the UN Security Council that all outsourcing and offshoring activity has been criminalised “with immediate effect”.
“I can’t believe it,” lamented the anonymous CEO of a major multinational service provider. “Decades of constant, overwhelming, economy-rejuvenating success – give or take a few multibillion-dollar failures – and they do this to us. Talk about a kick in the nuts.”
‘Advice For The Offshoring And Outsourcing Young At Heart’
by Fear of Gears
Advice for the outsourcing young at heart
Soon we will be older
How are we going to make it work?
Too many vendors living in a secret world
While they play movers and shakers,
We play digital in a whirl.
How are we going to make it work?
I could be happy; I could be quite naïve
Just labour arbitrage in my shadow, happy in a make-believe
In the 1980s it was simple: there was little sourced service. Then came the bandwagon and many jumped on, keeping the thinnest retained shell. What are the challenges now as the pendulum of fashion and practice continues to swing?
Trends in the market
As enterprises make significant investments in their sourcing and procurement function, they rightfully expect a solid return on that investment. One of the more significant value creation elements of a sourcing and procurement function is the team and process that focuses on strategic sourcing.
Earlier today, I had the honour of delivering the final presentation at the Sourcing Industry Group (SIG)‘s latest London Regional Roundtable – this time round, actually, a joint effort with the wonderful folks at the Association of Corporate Travel Executives (ACTE), which also comprised the ACTE London Corporate Travel Procurement Forum.
The days of paying supply chain outsourcers by number of FTEs are on their way out. In that purely cost-based model, the OEM’s interests – keeping hours low to contain costs – are inherently pitted against their managed service provider’s – putting more FTEs on a project to maximise revenue. Instead, OEMs are now exploring outcome-based models, where sellers become partners who share the risks and rewards of achieving their goals.
While there is a lot of focus and discussion on how to outsource the right way and bring business value, a very common mistake many companies make is around ignoring how outsourced services are orchestrated with the functions of the retained organisation(s) to provide business with a seamless “IT experience”.
For all the many successes of outsourcing, it’s not all sweetness and light… As promised a couple of weeks ago, here’s another installment of our Top Ten series featuring some of the most outstanding, damning, incendiary (and at times remarkably poetic) insults from the global outsourcing community. The more sensitive amongst you should look away now…