Palladium and Serviceframe have been exhibiting at the IAOP European Summit in Barcelona. We have been lucky that Barcelona is a city that starts late - as we have had a couple of long, detailed and very interesting days - which only spill out into the city as it starts to get moving somewhere between 9 and 11pm!
One of the hot topics this week been using outsourcing to access talent. It has shown up a difference between clients andservice providers. While the service providers have presented strong cases for harnessing global talent, and focussing on moving up the value chain, the clients still maintain a primary focus on cost reduction.
This was expanded by research presented by the Offshore Research Network, showing that clients considering offshoring consider cost far above any other factor. Client currently involved in offshoring still maintain cost as the primary drive - but it is closely followed by other factors including quality, innovation etc.
This provides the outsourcing advisor community with a challenge. How do we help clients considering offshoring to choose the right partner, and to structure the right deal? It seems that it is almost impossible to sell offshoring on anything other than a cost reduction business case - but we also know that once the deal is in place, the significance of delivery ability increases.
One option is to find providers who can flex cost and quality as the client evolves. This takes maturity in terms of contracting, and the scale to be able to operate, and switch between cost arbitrage and value add.
The Nirvana is to find a provider who can deliver both quality and cost reduction. We see this happening on a small subset of providers who can tap very specifically into a vertical - providing sufficient scale to generate real economies of scale, and real world class service into a specific niche. These are few and far between, but provide a truly innovative, partnership approach. For more details please feel free to contact me directly - daniel.berman (at) palladium.ie
Friday, October 17, 2008
Thursday, May 22, 2008
Aran jumpers, memes and outsourcing best practice
Flying back from the most recent eSCM training in Paris, a note in Cara magazine caught my eye. It stated that ‘Aran sweaters were originally knitted in the 1920s to be work by boys for their First Holy Communion. The idea that drowned Aran fishermen were identified by their sweaters is a misconception based on a passage in JM Synge’s Riders to the Sea’. I know that I have spread the Aran fishermen stories – and always believed it to be true.
Urban legends have become such a part of our consciousness that I wonder when we will start to have reverse Urban Legends – all it will take will be to drop the idea in the right place, that the fact that the Wright brothers invented the plane, that Einstein played the Violin, or that Ireland were involved in the last Rugby World Cup was an Urban Legend, and soon it will be written out of history.
We live in world of shifting, moving information – a sort of cambrian explosion in the meme world. And this makes it harder and harder to find stable information to structure your business around. During the training session this week we had lots of war stories, lots of examples, and lots of different views – all valid and useful, and many of them entertaining. However war stories are a little like Urban Legends – we don’t really know what is true, what is legend, and what is true but sounds like it should be legend.
eSCM provides a set of best practices for outsourcing based on experience. It is a set of war stories – but validated, researched, interpreted and tested – like finding your Urban Legend Published in Nature! This is the toolset to use when IT enabled sourcing is a key part of your business, either as a service provider or as a client.
As for Paris... what can I say? Unlike Traoloch’s experience in Amsterdam, we were in a vibrant but un-touristy location, the sun shone, the brasseries were packed - and as the song goes....
Monday, May 19, 2008
Lets stop learning from our own mistakes......
Last week was a challenging one. I spent a few days on the next module of an ongoing training course in a sourcing quality standard called eSCM. Making use of outsourcing and shared services effectively can be a tricky business. Lots of people know a little bit about it. Very few people have any real experience managing either in an outsource environment or managing the transition to an outsource environment. This creates several problems. The major one is that people struggle to find expertise to support them in their outsource and so tend to run the project themselves from 'first principles'. Many capable and smart people do very well. There is no reason why they wouldn't - the issue is that there is more risk and effort involved than anyone would like to admit.
At Palladium we have experience and expertise - the problem we had was that communicating that expertise and experience can sometimes be difficult - especially as we are basically just saying - 'look we have done this before, we have made the mistakes and we have some greaTt people and some good tools to help you'. Use our experience and save yourself some time, money and sweat. Most people want independent validation. We would too. Hence eSCM.
So what is it? It is a quality standard. It is a set of best practices. It essentially says 'Look if you were perfect and know everything about outsourcing and shared services here are the 158 things you would be doing'. where is the value? Well if you are starting off on the sourcing journey it gives great visibility of some of the key capabilities you need to have in your organization and some of the key activities you need to undertake to source successfully.
The point is this - if you are seriously considering sourcing - whether it is outsourcing, shared services or any other form of outsourcing then you don't need to learn from your mistakes. Invest in Sourcing Education to ensure that your arrangements deliver the promised benefits. Building capability around the eSCM best practices is definitely a good place to start.
At Palladium we have experience and expertise - the problem we had was that communicating that expertise and experience can sometimes be difficult - especially as we are basically just saying - 'look we have done this before, we have made the mistakes and we have some greaTt people and some good tools to help you'. Use our experience and save yourself some time, money and sweat. Most people want independent validation. We would too. Hence eSCM.
So what is it? It is a quality standard. It is a set of best practices. It essentially says 'Look if you were perfect and know everything about outsourcing and shared services here are the 158 things you would be doing'. where is the value? Well if you are starting off on the sourcing journey it gives great visibility of some of the key capabilities you need to have in your organization and some of the key activities you need to undertake to source successfully.
The point is this - if you are seriously considering sourcing - whether it is outsourcing, shared services or any other form of outsourcing then you don't need to learn from your mistakes. Invest in Sourcing Education to ensure that your arrangements deliver the promised benefits. Building capability around the eSCM best practices is definitely a good place to start.
Tuesday, April 29, 2008
The Tandem Parking Space Rule
I've been working on outsourcing contracts recently, and was reminded of an experience I had buying my first apartment.
We negotiated a very valuable second parking space (parking is at a premium in Dublin) - in a 'tandem' configuration, i.e. one very deep space which takes two cars. Once the solicitors were involved, we stressed the need to make sure we were allocated the tandem space. They assured us that it was in hand.
When they received the title, we asked about the tandem space - they confirmed that there was tandem parking space.
Before we came in to sign contracts, we asked them to double-chek about the tandem space, which they duly did.
When we arrived to sign the contract, they showed us the location of our single parking space. In dismay we asked about the tandem parking space - to which they showed us the note confirming that tandem cycles could be accommodated in the bike racks.
They must have thought we were quite obsessed about our tandem cycle - but neither they nor I caught the slight difference in our wording, or clarified what our odd request meant. And it's a lesson for us now - in constructing contracts, statement of work, business requirements or functional specifications. Be careful with your language, Clarify then Clarify again, If in doubt ask - actually ask anyway, even if you think there is no doubt!
We negotiated a very valuable second parking space (parking is at a premium in Dublin) - in a 'tandem' configuration, i.e. one very deep space which takes two cars. Once the solicitors were involved, we stressed the need to make sure we were allocated the tandem space. They assured us that it was in hand.
When they received the title, we asked about the tandem space - they confirmed that there was tandem parking space.
Before we came in to sign contracts, we asked them to double-chek about the tandem space, which they duly did.
When we arrived to sign the contract, they showed us the location of our single parking space. In dismay we asked about the tandem parking space - to which they showed us the note confirming that tandem cycles could be accommodated in the bike racks.
They must have thought we were quite obsessed about our tandem cycle - but neither they nor I caught the slight difference in our wording, or clarified what our odd request meant. And it's a lesson for us now - in constructing contracts, statement of work, business requirements or functional specifications. Be careful with your language, Clarify then Clarify again, If in doubt ask - actually ask anyway, even if you think there is no doubt!
Friday, April 18, 2008
New ServiceFrame Website
It's Friday afternoon and the new iteration of the ServiceFrame website is almost complete . We hope it will provide clarity on exactly what the tool does and how it might help all of you who toil with outsourcing metrics. If you don't have much time just look at the demo. All feedback is welcome.
Key activity for Palladium next week will be reviewing the Irish Regulators new guidelines on outsourcing. We expect these will mostly reflect the type of best practice that is captured in eSCM. The key driver is probably a genuine concern that our financial institutions retain effective controls to protect our money - no doubt accelerated by the recent European MiFID (Market in Financial Instruments Directive). We will be publishing some practical tips on how to be compliant to the guidelines when they are published.
Key activity for Palladium next week will be reviewing the Irish Regulators new guidelines on outsourcing. We expect these will mostly reflect the type of best practice that is captured in eSCM. The key driver is probably a genuine concern that our financial institutions retain effective controls to protect our money - no doubt accelerated by the recent European MiFID (Market in Financial Instruments Directive). We will be publishing some practical tips on how to be compliant to the guidelines when they are published.
Tuesday, April 15, 2008
Telecoms Outsourcing Conference, Amsterdam, April 2008
Last week I attended the Telecoms Outsourcing Conf in Amsterdam. As always at these events there was a mixed bag of speakers and presentations. On balance it was worth the trip. As always it is a pity there wasn't a few more customer organisations speaking.
Most notable feature of the whole conference was the extent to which outsourcing 'chat' has now become grounded in reality. There was some talk about the 'size' of the outsourcing market and the extent to which it will 'transform' business globally. but I got a real sense that most participants were really just interested in the practical aspects. There was an acceptance that 'pure' outsourcing is a rarity - but that real benefits accrue from 'out-tasking' or even just adopting some of the best practices of an outsourcing business model.
Notably strong speakers at the event were Oliver Coughlan from O2 Ireland and VS Shridar from Tata Consulting. Oliver gave a refreshingly honest account of the decision making process within O2 Ireland in relationt to outsourcing. It was clear to all that a clear focus on 'core' activity was key to O2's decision. There was much less emphasis on cost than one might expect from reading popular media. Oliver also gave a very clear sense of the people focus that makes O2 one of Ireland's best employers. This focus on people's welfare was reflected in the approach they have taken to outsourcing.
On the Provider side VS really showed why India is a service powerhouse. Whilst his meticulous attention to detail might be difficult on a Friday afternoon - it demonstrated that these guys have no interest in 'chatting' about generic high level MBA type benefits. there is real expertise which can be used to improve speed of delivery and efficiency. VS is a guy who you can take seriously when he says they are trying to build value as well as just reduce cost. As he said when they win business there is no opportunity to cut cost - they must be remain competitive by adding value.
As for Amsterdam.....well lets just say it is a real pity to have fly across Europe and then have a conference in an airport hotel.
Traoloch
Most notable feature of the whole conference was the extent to which outsourcing 'chat' has now become grounded in reality. There was some talk about the 'size' of the outsourcing market and the extent to which it will 'transform' business globally. but I got a real sense that most participants were really just interested in the practical aspects. There was an acceptance that 'pure' outsourcing is a rarity - but that real benefits accrue from 'out-tasking' or even just adopting some of the best practices of an outsourcing business model.
Notably strong speakers at the event were Oliver Coughlan from O2 Ireland and VS Shridar from Tata Consulting. Oliver gave a refreshingly honest account of the decision making process within O2 Ireland in relationt to outsourcing. It was clear to all that a clear focus on 'core' activity was key to O2's decision. There was much less emphasis on cost than one might expect from reading popular media. Oliver also gave a very clear sense of the people focus that makes O2 one of Ireland's best employers. This focus on people's welfare was reflected in the approach they have taken to outsourcing.
On the Provider side VS really showed why India is a service powerhouse. Whilst his meticulous attention to detail might be difficult on a Friday afternoon - it demonstrated that these guys have no interest in 'chatting' about generic high level MBA type benefits. there is real expertise which can be used to improve speed of delivery and efficiency. VS is a guy who you can take seriously when he says they are trying to build value as well as just reduce cost. As he said when they win business there is no opportunity to cut cost - they must be remain competitive by adding value.
As for Amsterdam.....well lets just say it is a real pity to have fly across Europe and then have a conference in an airport hotel.
Traoloch
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