Transformational outsourcing: best practices

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