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Transformational outsourcing: best practices

  • Publication Date:October 2007
  • Publisher:Ovum
  • Product Type: Report
  • Pages:23

Transformational outsourcing: best practices

The notion of transformational outsourcing is marketed less today by vendors than a few years ago. We think there are several reasons for this. One of the main reasons is that most outsourcing contracts focus on cost savings - transformational outsourcing remains the exception, rather than the norm, in the market.

Nevertheless, transformational outsourcing represents a service offering for which a number of clients have the need, and it is here to stay. Transformational outsourcing makes sense to vendors: outsourcing contracts usually have a lower margin than project services. It offers the possibility of combining long term and recurring revenues with more profitable transformational work.

The importance of transformation in IT outsourcing (ITO) - i.e. infrastructure-led outsourcing and application management - differs greatly from other forms of outsourcing, such as BPO and network-led outsourcing.

  • Key messages
  • Transformational outsourcing in context
  • Transformational outsourcing today
  • IT outsourcing
  • Infrastructure-led outsourcing
  • Application management
  • BPO
  • Client strategies
  • Defining transformation
  • Partnership versus lock-in
  • Complexity versus transformation
  • Change management and governance versus technical aspects
  • Goals versus reality
  • Transformational outsourcing adds complexity
  • Vendor strategies
  • Playing to strengths
  • Codifying best practices
  • Vendor approach to transformational outsourcing
  • Orange Business Services - network-led outsourcing
  • Sopra - application management
  • Capgemini - IT outsourcing
  • Arinso - HR BPO
  • HP - infrastructure-led outsourcing
  • TCS - BPO
  • IBM - BPO
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