Managing Large Outsourcing Portfolios

13 Oct 2016

Large corporations run on maturity curve wherein the basis of a profitable business is often governed by internal efficiencies. These corporations lead the way in adapting new technologies, streamlining cost centers and yet, sustaining high level of operations. It is therefore natural that these corporations have the largest outsourcing spends across multiple service providers, locations, and resources, all hinged on crucial performance metrics.

With the onset of the digital era, as large buyers continue to leverage new locations, outsource larger functions and try newer delivery models like Cloud, one can expect their already bulky portfolios to become increasingly complex.

In our experience of working with Fortune 100 companies, we have observed that the largest outsourcing mandates are often fraught with redundancies, lack of checks and balances, and sub-optimal sourcing, all leading to loss of precious dollars. This viewpoint looks at some of the typical issues that eat into outsourcing gains such as:

  • Fragmented Service Provider Portfolio
  • Rate card structure inefficiencies
  • Multiple rates for similar resources
  • Excessive use of specialized resources
  • Inverted pyramids
  • Inadequate location mix
 

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