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Showing posts from April, 2010

Sourcing managers better shape up for the future

Many outsourcing contracts are still driven by the aim to cut cost. Cutting cost can be achieved by economies of scale and standardization of similar activities and assets. This means that the scope of typically outsource contracts is defined in terms functional area’s or processes (e.g. IT infrastructure support, payroll, logistics). Many of the functional area’s or business processes being outsourced can often indeed be split off without large consequences for the retained functions and business processes. There is however at least one area where these standard outsourcing practices start doing more harm than good. One of these area’s is IT. The rate IT is absorbed by business processes has never been so high and soon almost every items we use in daily live including clothes and food, will have some kind of IT component. At the same time is there the relentless pressure to cut cost and innovate, increasing the complexity and dynamics for the organization as a whole. The role of IT