Wednesday, October 28, 2009

3 Critical Questions to Simplifying Complexity

By Bill Frech

How many different outsourcing contracts does your company have?

Most large companies find themselves with multiple contracts in the IT and BPO space, often with different providers. In fact according to Julia Kotlarsky, an Associate Professor at the Warwick Business School, most businesses are throwing billions of dollars at IT outsourcing contracts despite having little understanding of what they spend or get for their money.

This multitude of contracts has resulted in more management complexity and in some cases more complexity for the end-user. Frequently, separate organizations or different groups within the same organization manage these contracts.

3 critical questions:

1) Are contracts still providing value to the company?
2) Are contracts still in support of the company goals?
3) Are the end-users of these contracts getting what they need to run their business on a daily basis or are shadow organizations and solutions arising?

This white-paper "Outsourcing has become an Evolution to Complexity, Increased Cost and Unknown Value" will discuss how companies have evolved to this situation and what they need to do to put mechanisms in place to ensure the outsourcing agreements support the long-term business goals.

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