It’s time to renegotiate your IT outsourcing contract – Alfredo Saad

It’s time to renegotiate your IT outsourcing contract – Alfredo Saad

Articles, Knowledge Resources
Alfredo Saad – IT Outsourcing Consultant Three scenarios recommend the renegotiation of your current IT outsourcing contract. Each of these scenarios shows distinct motivations and different objectives to be achieved during the renegotiation. Initially, let us define them through the perception of the buyer organization about how much its expectations are being (or not being) met. 1st. scenario – Nothing seems to work in the contract. 2nd. scenario – Contract no longer meets requirements. 3rd. scenario (surprising!?) – Contract seems to work fine. Let us discuss each of the proposed scenarios, taking into consideration their characteristics, the root causes that motivated their appearance and the objectives aimed during the renegotiation. 1ST. SCENARIO – NOTHING SEEMS TO WORK IN THE CONTRACT o             1st. scenario characteristics Among the usual characteristics of this…
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Traditional Outsourcing x Cloud:  “Old” Risks x “New” Risks – Alfredo Saad

Traditional Outsourcing x Cloud: “Old” Risks x “New” Risks – Alfredo Saad

Articles, Knowledge Resources
Alfredo Saad – IT Outsourcing Consultant As discussed in the previous article “Cloud: Take Care of the “New” Risks!”, whose reading is recommended, risk management shows some similarities but also some dissimilarities as we deal with traditional Outsourcing or Cloud scenarios. As mentioned, risks to be managed can be categorized into 3 groups: Risks which currently exist for “traditional” outsourcing and keep existing for cloud sourcing, although with different and evolving characteristics Risks which currently exist for “traditional” outsourcing, but do not exist for cloud sourcing Risks which do not exist for “traditional” outsourcing but have arisen for cloud sourcing   Let us detail, for each of the groups, the main risks to be managed. The list below is not exhaustive as other risks could be added depending on a…
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Cloud: Take Care of the “New”Risks! – Alfredo Saad

Cloud: Take Care of the “New”Risks! – Alfredo Saad

Articles, Knowledge Resources
Alfredo Saad - IT Outsourcing Consultant There are similarities and dissimilarities between the contracting of cloud services and the contracting of “traditional” IT outsourcing services (both ITO and BPO). One of the similarities is the relevance of managing the risks on each of the 6 steps of the process (namely, identification of applicable business drivers; definition of organization’s sourcing strategy; provider(s) selection; contractual negotiation; services transition; and contract governance). In both cases, managing the risks is mandatory if we want to achieve the intended potential benefits over the business motivators of the decision. These drivers are not mutually exclusive and may include cost pressure, agile achievement (or recovery) of competitive advantage, focus in core business activities, penetration in new markets and speed up of time-to-market. The sourcing strategy of the…
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Professionals Involved in Outsourcing Lifecycle – Provider’s View

Professionals Involved in Outsourcing Lifecycle – Provider’s View

Articles, Knowledge Resources
During all these years that I’ve spent in the complex ITO environment, I’ve come across people with different set of skills, education, experience and roles. Let me share few roles that are, majorly, involved in the outsourcing lifecycle from the technology services’ provider’s stand point. Categorized in three primary segments (Buyer side, Provider side and Others), professionals working in these roles could be at any Level in the Organizational Hierarchy: i.e. Board Member, CXO, President, Vice President, Director, Manager, Associate/ Executive etc. Needless to say, people at the lower level in the organizational hierarchy have less decision making power than the people at higher level. Furthermore, depending on the size of organization and focused strategy, some of these might be confined to a particular Geographical Territory: Continent Group: EMEA, APAC etc.…
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Need of an Outsourcing Advisor

Need of an Outsourcing Advisor

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Companies having few hundred thousand to few million dollars outsourcing budgets would certainly go and hire an outsourcing advisor to build a strategy and help them on innovation, negotiations, delivery, vendor selection etc. When we asked, what could be few reasons for a (services buyer side) company that has approved outsourcing budgets but still want to stick with same service provider with no new strategy; and when they know that an outsourcing advisor can come up with good options, proven strategies and workable solutions? Some experts shared their experiences and insights. Michael Filak (IT/Strategic Sourcing Consultant): There may be many reasons for this to happen. From my experience (and to over-simplify), the two largest are: 1) They are happy with the service and the relationship with the outsourcing service provider…
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Primary reasons behind failures of outsourcing arrangements

Primary reasons behind failures of outsourcing arrangements

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[caption id="attachment_9818" align="alignleft" width="200"] Joe Valentine, J.D., M.B.A.[/caption] Primary reasons behind failures of outsourcing arrangements - Joe Valentine, J.D., M.B.A. Outsourcing is a business tool that is used commonly in the information technology and other sectors, to leverage differences in labor and other costs in different countries, to reduce the overall cost of performing all or part of the work required to complete a project, or develop and test a product. Like any other tool, it can be very successful if the process is designed, implemented and managed properly by the right people. However, there are various pitfalls which need to be correctly diagnosed and avoided or mitigated to avoid failure. Some of the common reasons for failure are as follows: Communication gaps: The customer has certain expectations from the project…
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More about US/India culture differences

More about US/India culture differences

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Culture Differences - Cultures vary all across the world. But the American and Indian cultures differ a lot. Even though there are some similarities too, but the differences are more pronounced. One thing to be remembered here is that the culture of America is result of a mix of various cultures. But the Indian culture has its own unique values. Family Relations (Culture Differences) Indians are family oriented while the Americans are oriented more towards the self. This can be due to higher incidences of divorces in America. Hence very few children live with their biological parents for a long time. Besides, parents in India tend to look after their children till they become financially independent and get married. In Indian culture, many children continue to live in their family home…
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Information Technology In Daily Life

Information Technology In Daily Life

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People tend to think of Information technology as something that has taken away physical interaction and social skills from everyone’s lives. People are so busy in their electronic gadgets that they have no time for anyone else, including their own family. They are so busy texting or playing online games that they have no time to talk to those who are actually around them. In the same way, they are not playing any outdoor games as online world has taken over their lives. This is leading to a lot of emotional, social and physical problems. But the reality is not so grim. In fact, information technology has made our lives much easier and comfortable too. Let us look into a few of these positive aspects. Easy Planning Now you can…
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Boom In Information Technology

Boom In Information Technology

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Today we are seeing a boom in the information technology sector. This has been fuelled by a number of reasons. We can look at a few of these over here. Better Lifestyle Today people are looking for a better lifestyle and information technology is helping in achieving just that. With information at your fingertips, you are able to make informed decisions. You know exactly what is happening around you, when and where. This lets you plan things better. The social media is the buzzword today. Now you can remain in touch with your friends all around the world. Sharing of even your daily activities has become a norm. So now you know what your friends are up to, what they are eating, where they hang around, their latest fashion craze…
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Freelancer’s Life

Freelancer’s Life

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A freelancer’s life looks really interesting from a distance. But the fact is that it is a life full of responsibility and a lot of hard work. In fact, there are a number of aspects here. We can look at all of these one by one in order to understand everything better. Flexibility in freelancer’s life The most attractive part of a freelancer’s life is the flexibility. There is the option to work from anywhere and at any time. In fact, this is definitely a sort of freedom which people crave for. Now it is important to look at things from another perspective. People work as a freelancer due to a number of reasons. It can be family reasons like small kids at home or illness or old parents who cannot…
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