Sourcing can drive tremendous value for an organization but unfortunately far too often, sourcing strategies built with the wrong approach do not create value and often destroy it, leading to years of recovery.
Here are five straightforward yet common mistakes in outsourcing that destroy value:
- Not having a clear service strategy aligned to business outcomes
- Failure to engage in sufficient upfront planning and analysis resulting in a sourcing strategy that does not align to overall business strategy and complement the business its serving
- Too narrow of focus on cost reduction and short-term results vs. tangible opportunities to drive growth, innovation and operational effectiveness which can be achieved through the right outsourcing arrangement
- Deficient workload and transaction tracking resulting in inaccurate data in an outsourcing RFP, and simply a bad deal for both the client and service provider
- Underestimating the management effort and attention required to successfully develop and manage an outsourcing relationship to ensure it delivers on the intended business case
Further reading: Wavestone US recently published a new strategy brief titled “Next-Generation IT Sourcing Primer” Click here to download a complimentary copy.
4 Strategic Mistakes to Avoid When Defining Service Level Management Processes
Jun 01, 2023
Strategic errors made when defining service levels can have a detrimental, cascading effect on service level operational performance - leading to additional costs and service delays. Here are 4 strategic errors to avoid when defining service levels and instituting the SLM processes to govern them.
Optimizing the 3 Stages of Your Cloud Software Development Lifecycle
May 25, 2023
Your Cloud Optimization Strategy requires seamless coordination between optimization levers throughout the SDLC to produce and maintain effective cloud solutions. Discover best practices and improvement opportunities for each lever, where they fit in the SDLC, and how to synergize them effectively.
Have a Question? Just Ask
Whether you're looking for practical advice or just plain curious, our experienced principals are here to help. Check back weekly as we publish the most interesting questions and answers right here.