Services Sourcing: Outsourcing and Offshoring

Measures for Sourcing Success Do you want to maximize value from your services sourcing, outsourcing or offshoring arrangements? But you are uncertain where the levers are to deliver services sourcing value? And how your organization can be transformed to improve delivery?

We can help you improve outsourced and offshored services delivery:

  • Identify sourcing opportunity areas,
  • Build robust outsourcing and offshoring business cases,
  • Design your shoring strategy,
  • Support in offshore provider selection,
  • Transform the front-office and set up governance structures to get the best out of outsourcing and offshoring,
  • Improve sourcing contracts and moderate to improve the relationship between customer and provider
  • Conduct intercultural teambuilding interventions between client & provider and front- & back-office, and
  • Support escalation management and execute operational audits of the offshore team for project recovery.

Our Expertise and Experience | Our Approach | More Info on Services Sourcing

 

Our Services Sourcing Expertise and Experience for your Advantage

Reaping in the benefits of a successful services sourcing project is not a matter of luck, neither is organizing distributed delivery and the offshoring lifecycle a 'black art.'  We know how to strategically think about services sourcing in order to entrepreneurially implement offshoring and we know the ground reality on the floors of India's offshore delivery factories. We have ...

  • ... physically worked in offshore delivery centres in India in various role and forms since 1995: first as developers/business analysts and later as project/program managers. We have experienced both the captive center as well as the third-party model.
  • ... been both on the provideer as well as on the client side managing offshored service delivery contracts and moving services sourcing contracts between providers and locations.
  • ... in-depth knowledge and experience with India, but also exposure with off- and nearshoring to Ireland, Phillipines, and Eastern Europe.

Our education spans from engineering and informatics all the way to business administration and strategic management. We are hands-on and can solve problems on the ground just as well as we are strategic and can develop competitive sourcing strategies and IS/IT architectures. Please read more about us.

Probably most important: While we also work with service providers, we have kept our independence and only provide impartial advice. 

We publish both academic research and industry best practices on a regular basis.

Globalization of Professional Services. Innovative Strategies, Successful Processes, Inspired Talent Management, and First-Hand ExperiencesGlobalization of Professional Services. Innovative Strategies, Successful Processes, Inspired Talent Management, and First-Hand Experiences.
Bäumer, U., Kreutter, W, & Messner, W. (Eds., 2012)
Heidelberg: Springer

Forewords by Heinz-Paul Bonn (Vice President, BITKOM) and Som Mittal (President, NASSCOM).

Globalization of Professional Services. Innovative Strategies, Successful Processes, Inspired Talent Management, and First-Hand ExperiencesIntelligent IT Offshoring to India. Roadmaps for Emerging Business Landscapes.
Messner, W. (2010)
Houndmills: Palgrave Macmillan

Working with IndiaWorking with India. The Softer Aspects of a Successful Collaboration with the Indian IT & BPO Industry.
Messner, W. (2009)
Heidelberg: Springer

Rightshore!Rightshore!. Successfully Industrialize SAP Projects Offshore.
Hendel, A., Messner, W., & Thun, F. (Eds., 2008)
Heidelberg: Springer

Wolfgang's article in Die Bank (03/2012) on the Path to Global Optimization - Outsourcing and Offshoring (in German: Auf dem Weg zur globalen Optimierung. Outsourcing und Offshoring) is about the road from outsourcing singular activities to platform strategies in the financial services sector; his paper on Offshoring to India - Realising Savings and Capturing Value in the peer-reviewed Journal of Indian Business Research (Vol. 3 No. 1, 2011) describes how savings and value can be generated by understanding and structuring the offshore journey as a lifecycle.

Recent research by GloBus Research on the Effect of Organizational Culture on Employee Commitment in the Indian IT Services Sourcing Industry is published in the Journal of Indian Business Research (Vol. 5 No. 2, 2013).  The paper proposes and empirically proves that employee commitment in an Indian IT services offshoring context is influenced by organizational culture.

 

Consulting and Coaching: Our Approach to Services Sourcing

We believe that organizations require services sourcing skills as a core internal competence and work towards instilling such competence in our consulting, tutoring, and coaching assignments. Our aim is for our clients to become confident and self-sufficient in the governance of services sourcing projects and master intercultural communication challenges in global distributed delivery.

In addition to consulting on services sourcing, we have trained hundreds of employees from many different service providers and client companies across vertical industries across the world. Please see here for some testimonials.

 

More on Services Sourcing

Executing your Sourcing Arrangements to Maximum Value

There are three key measures for sourcing success. First, an organization's enterprise and IT strategy should be connected with its sourcing strategy. This is not an easy task - many strategists have no experience with the implementation and vice versa. Second, services sourcing works best when managed as a lifecycle and not as a one-off activity. Initiating and managing this lifecycle is one of the real essential competencies that need to be mastered. While there is no right way of going through the governance decisions of the sourcing lifecycle, a general sequence of six stages can be identified.

Third, as the main part of delivery is shifted away from the core of the organization to another company, the organization's own employees will move much closer to the business areas. This move from delivery towards solution finding, together with the added challenges of outsourced or offshored delivery, brings with it new requirements for soft skills. The lack of face-to-face communication needs to be compensated for by more effective and structured communication, as well as enhanced intercultural communication skills. Of course, these skills cannot be commanded, but need to be trained and slowly built. Intercultural awareness and communication skills trainings are a good start.