By Mary C. Lacity
A wealthy database of over 2,200 outsourcing preparations, studied throughout sectors and geographies, and through the years, from inception, via agreement signing, to results. This booklet has remarkable perception into the strong practices which were confirmed powerful time and again.
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Why you shouldn’t ask for a discount
How to create a good and potent written agreement
How to select from a fixed-price or hourly agreement
How to set a money scheme and schedule
Secrets of speaking successfully along with your outsourcing partner
How to get a stricken venture again on track
The Ten Commandments of the nice client
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Extra resources for Advanced Outsourcing Practice: Rethinking ITO, BPO and Cloud Services
2011), “What Suppliers Say about Clients Part 1 – Establishing the Outsourcing Arrangement,” Cutter IT Journal, Vol. 12, 2. Reprinted with kind permission from the Cutter Consortium. Chapter 3 What Providers Say about Managing Outsourced Services. Chapter 3 is developed and updated from Lacity, M. and Willcocks, L. (2011), “What Suppliers Say about Clients Part 2 – Managing Outsourced Services,” Cutter IT Journal, Vol. 12, 3. Reprinted with kind permission from the Cutter Consortium. Chapter 4 Creating Shared Services in the Private and Public Sectors.
In addition, providers are not attracted to deals that are too small, or may not devote their best resources to service a tiny account (Lacity and Willcocks 2011). In general, too much outsourcing also was associated with lower levels of success (Currie 1998; Lacity and Willcocks 1998; Seddon 2001; Straub et al. 2008). As an example of “too much,” Lacity and Willcocks (1998) found that clients who outsourced more than 80% of their IT budgets had success rates of only 29%; clients who outsourced less than 80% of their IT budgets had success rates of 85%.
As scholars, academics are likely to be more objective than other sources of ITO and BPO research sponsored by industry consortiums or advisory ﬁrms. In the ITO and BPO domain, the 20 years (1992–2011) of academic research have generated a good understanding of practices. Overall, we have learned why ﬁrms outsource (mostly to reduce costs, access resources, and focus internal resources on more strategic work1 ), what ﬁrms outsource (mostly a portion of their overall back-ofﬁce portfolios), how ﬁrms outsource (mostly by formal processes), and outsourcing outcomes as measured by realization of expectations, satisfaction, and performance (Dibbern et al.