Fixed Price Model in Outsourcing

Fixed Price Model in Outsourcing

Articles, Knowledge Resources
Playing ball with a remote team you should be always on pins and needles. Since you are far away, there is almost nil possibility to have a full control over the development process. Of course, you can always check the outcomes of the work, but how do you know that a great deal of time you spent was not simply wasted? How to be sure that you remunerate exactly the productive activities and not constant coffee breaks and smoking time-outs? The most important thing is to have a clear understanding on all the terms and conditions before the project is considered to be outsourced. You should be clear about what deliverables you are going to pay for and which price rates are to be applied. Of course, all the details…
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Traditional X Cloud Outsourcing – Six Differences

Traditional X Cloud Outsourcing – Six Differences

Articles, Knowledge Resources
 Alfredo Saad: Principal and Founder - Saad Consulting In cloud, the definition of the sourcing strategy, as well as its implementation, shows distinct characteristics as compared with those of traditional outsourcing. The comprehension of these differences and their appropriate handling are some of the determinant factors that make a cloud implementation project in the organization succeed. It should be kept in mind that sourcing activities, such as provider(s) selection, contract negotiation and its governance, are important components of such implementation. Here we will discuss 6 of these differential characteristics of the sourcing activities in both cases, as seen below: 1 - CONTRACT SCOPE Traditional Outsourcing >>> Static Few scope changes along contractual lifetime Compatible with “make & sell” business model Review cycle of contractual requirements: month / years (long and…
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IT Outsourcing Providers and Clients: Partners or Enemies?

IT Outsourcing Providers and Clients: Partners or Enemies?

Articles, Knowledge Resources
 Alfredo Saad – IT Outsourcing Consultant As an industry that lives an accelerated maturing process, IT services outsourcing, seen as a management tool, has shown a significant progress concerning the attitude and the vision of its leading figures: the clients and the providers. But, there’s still much to do, as we will see, especially when we consider the specificities related to the newly disseminated cloud solutions. On the clients’ side, we observe an advance which results from a learning process, originated from their own accumulated experience, from the consciousness of their own mistakes and from the observation of someone else’s mistakes. Such advancement brought a better balance on the relationship between both parties, originally most favourable to the provider. On the providers’ side, we also observe an advance which brought…
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IT Outsourcing 2.0: Why Providers Should Change Their Attitude

IT Outsourcing 2.0: Why Providers Should Change Their Attitude

Articles, Knowledge Resources
 Alfredo Saad – IT Outsourcing Consultant Since the beginning of the outsourcing era, during the eighties, a typical complaint by the organizations that outsource their IT services is made explicit during the satisfaction surveys periodically conducted by the providers. It concerns to their perception about a certain inability of providers to promote innovative ways of providing the services, which would impact positively the buyer organizations regarding to: - The efficiency and effectiveness of their business operations - Their competitiveness and agility in the market they operate - The treatment of the permanently mutant requirements of their client community Although buyer organizations typically recognize the provider’s ability regarding the fulfillment of their tactical and operational contractual obligations, they resent a provider’s consultative approach, aiming at prospecting and discussing innovative alternatives. It…
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Common Mistakes to Avoid Before Launching an Application in Market

Common Mistakes to Avoid Before Launching an Application in Market

Articles, Knowledge Resources, Other News/ PR
You have strategized, planned, designed, developed, tested, and now it is finally time to launch your shiny new application. However, as anybody who is ever promoted an application can confirm, it can be incredibly exciting and equally challenging as well. Almost around 20% applications fail as they don’t even see or searched by the users. It does not mean that those failed applications are bad but due to failing into a pit they just could not pull themselves out. You worked hard building your application, but that is only half the battle. Getting people to utilize it is the other half. You owe it to yourself to be just as committed to getting people to use it as you were building it. What are the Different Pre Launch App Marketing…
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IT outsourcing contracts and their crises: solve them or, better, avoid them!

IT outsourcing contracts and their crises: solve them or, better, avoid them!

Articles, Knowledge Resources
Alfredo Saad – IT Outsourcing Consultant Have you lived a crisis in an IT outsourcing contract? What actions should be taken to solve it? Even more, what could have been done earlier to avoid it? Six clues to check for a crisis At least 6 clues typically mould a crisis in an IT outsourcing contract.  All of them evidence some kind of discomfort inside the buyer organization which has the perception that... ...the quality of the services provided is unsatisfactory, ...the resources consumption reports are incomplete and, still worse, error prone, ...some requested services are not executed allegedly because they would be out-of-scope, ...the amount and skill of resources allocated to the contract operations are insufficient ...the resources allocated by the provider are not aware of the buyer’s business priorities…
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IT Outsourcing outcomes: Didn’t they show up?

IT Outsourcing outcomes: Didn’t they show up?

Articles, Knowledge Resources
Alfredo Saad – IT Outsourcing Consultant Do the C-level executives of your organization live a latent feeling of frustration with the outcomes of their IT outsourcing project? You, as the organization’s CIO, to whom was assigned 3 years ago the responsibility of leading the project and, later on, of managing the outsourcing contract have been hearing one or more of the following questions? “Where is the promised 20% IT budget reduction?” “Shouldn’t our provider be proposing us new and innovative IT solutions to support our business operations?” “Why our end-users perceive a worsening trend in the outsourced services quality?” “Why our provider shows a mere reactive attitude and, yet worse, with slow and inefficient actions?” “Why our provider shows such a deep ignorance about the critical and priority factors of…
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You can buy strategic competitive advantage through outsourcing

You can buy strategic competitive advantage through outsourcing

Articles, Knowledge Resources
This article examines the challenges that we believe the outsourcing market is currently confronting. In particular, I explore how to get the sourcing model strategy right. We introduce Vested™, which has been described as a “business model, methodology, mindset and movement for creating highly collaborative business relationships that enable true win-win relationships in which both parties are equally committed to each other’s success.” During the last 10 years, the outsourcing industry has been reinventing itself. It is a market with fierce competition, relatively low supplier margins and huge differences in business maturity – even between neighboring countries. While outsourcing operating models have delivered greatly on the bottom line all over the world, they have been, and to some extent still are, considered a necessary cost and a completely operative task.…
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Is your service provider a real technology partner?

Is your service provider a real technology partner?

Articles, Knowledge Resources
In order to create a partnership there has to be frank discussions between the partners and these discussions will not be without risk. Both sides have to be able to enunciate the benefits of the partnership for both sides. Planning up-front to select providers whose business model and culture facilitates effective partnership, versus finding yourself limited when trying to convert. Leverage existing experience and larger operations to save on costs and limit risk of quality issues, but understand your real needs. Mutual benefit beyond the current transaction(s) is required before a partnership can exist. There's no partnership where all the benefits accrue to one party. A partner is much more than a strategic vendor as there is no long term benefit to the vendor in this relationship. Convert the buyer-supplier…
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Cloud adoption: would a previous experience with traditional outsourcing make it easier?

Cloud adoption: would a previous experience with traditional outsourcing make it easier?

Articles, Knowledge Resources
Alfredo Saad – IT Outsourcing Consultant It may sound surprising to some people that the probability of success in a cloud adoption project can be increased if the buyer organization has had a previous experience in the traditional outsourcing area. More surprising yet: this may be true even if such previous experience was not completely successful. Which facts support such conclusions? Under an IT services outsourcing perspective, cloud adoption is merely one of the possible (and surely promising) options for the external contracting of IT services by an organization. Many aspects are common to all existing alternatives, and the long matured and learned lessons during a previous exercise may be a relevant facilitator for the exploration of such innovative option. This will avoid the same mistakes be made and will…
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