2012 Outsourcing Wish List: Collaboration and Sustainability Please!

This is the time of year for trend lists and predictions. Usually they are mostly wrong or well, predictable. There are some that are worth paying attention to however. One is the International Association of Outsourcing Professionals’ Top Outsourcing Trends for 2012.

For instance, IAOP says we should watch out for more M&As and consolidation “as providers struggle with tight access to capital and to meet growth expectations given the uncertain economic and political situation worldwide.”

IAOP also says to expect sourcing close to home as “higher unemployment, economically blighted urban areas and local government incentives will drive more companies to stay on shore, especially in the U.S. Nearshoring, rural sourcing and domestic sourcing will be on the rise.”

But also watch for a surge of the BRIC nations as outsourcing destinations, especially Brazil.

It occurs to me that those cover-the-base trends have appeared on various year-end lists for several years now. They are pretty much continuing trends since the Great Recession.

But what really got my attention was when IAOP talked about “collaborative and strategic” trends. It said that models “where customers and service providers work collaboratively to develop performance-based partnerships will be increasingly used.”

Yes! The need for collaboration became a top topic for discussion in 2011 and maybe it reaches critical mass—can you say Vested Outsourcing?—in 2012.

Collaboration pops up again when IAOP talks about technology convergence: “The convergence of social networking, collaboration and mobility platforms will create a significant demand for value-added outsourcing services.”

So however you think about it—collaborative sustainability, or sustainable collaboration—I’m betting that 2012 will be a watershed year for collaborative outsourcing.

And, in my humble opinion, the Vested Outsourcing model is on time and positioned to help lead the charge to a more collaborative, sustainable and long-term win-win outsourcing environment. There are two Vested books—and another on the way—that present a comprehensive program and framework for achieving the long-term win-win in this difficult global business environment in a new, flexible and innovative way.

I hope your New Year’s resolution is to get Vested with your most strategic business partners in 2012!

Happy New Year!

Comments

  1. Bryan Engelman says:

    in the spirit of discussion here are some approaches or thoughts I have with keeping or maintaining some sustainability in vested outsourcing. Steps or core things I have used to maintain some sustainable partnership or collaboraton ( big word) anyhow feel free to throw darts some some things I’ve learned do work at some level:

    fundamental sustainability approaches:
    •Ways of Working – Core competencies must be intentionally developed and strengthened within both companies such that all levels of interaction within the partnership demonstrate trust, respect, open communication, and commitment. I find thes competencies to be basic but keep sustainability momentum….
    •Organizational Structure – It is important that both partners understand and appropriately segregate the delivery of services in achieving shared objectives from the commercial negotiations and decisions. This allows the partnership framework to create a results focused, problem solving environment rather than relying on the contract to guide the decision making.
    •Partner /Governance – Given the importance of clear and open communication at all levels, it is very important that formal discussions be held to establish a framework for joint planning, product road mapping and decision making at all levels, from the tactical manager level up through the executive level. This collaborative framework will provide all parties insight (as opposed to oversight) and a way to develop joint wins together.
    •Scorecard and Reporting – As the shared strategic and tactical objectives for the alliance relationship are established, it is critical that a joint scorecard be developed to measure progress against those goals and prompt the partners to develop alternate strategies and approaches when needed.

    What other sustainability approaches work for others who work in this space?

    • Kate Vitasek says:

      Bryan – thanks for your comment! The items you point out are all great – and are components of setting up a sound governance. You can get to a great Vested deal – but it MUST be sustained and that is the heart of Rule #5 – Insight vs Oversight Governance. Have you read the white paper we wrote on Vested governance with the Corp Executive Board and the International Assn for Contract and Commercial Mgmt. It is in our library and is free for download. The second book – The Vested Outsourcing Manual – goes into great detail about what goes into a good governance structure for maintaining a Vested Agreement. If you are doing the 4 items you have listed above – you are definitely going in the right direction. You can pick up more good tips from the Vested Outsourcing Manual. Happy to chat live if you want as well. Just email me and we can set up some time to talk. kvitasek@utk.edu I’d love to hear what others think as well!

  2. Bryan Engelman says:

    in the spirit of discussion here are some approaches or thoughts I have with keeping or maintaining some sustainability in vested outsourcing. Steps or core things I have used to maintain some sustainable partnership or collaboraton ( big word) anyhow feel free to throw darts some some things I’ve learned do work at some level:

    fundamental sustainability approaches:
    •Ways of Working – Core competencies must be intentionally developed and strengthened within both companies such that all levels of interaction within the partnership demonstrate trust, respect, open communication, and commitment. I find thes competencies to be basic but keep sustainability momentum….
    •Organizational Structure – It is important that both partners understand and appropriately segregate the delivery of services in achieving shared objectives from the commercial negotiations and decisions. This allows the partnership framework to create a results focused, problem solving environment rather than relying on the contract to guide the decision making.
    •Partner /Governance – Given the importance of clear and open communication at all levels, it is very important that formal discussions be held to establish a framework for joint planning, product road mapping and decision making at all levels, from the tactical manager level up through the executive level. This collaborative framework will provide all parties insight (as opposed to oversight) and a way to develop joint wins together.
    •Scorecard and Reporting – As the shared strategic and tactical objectives for the alliance relationship are established, it is critical that a joint scorecard be developed to measure progress against those goals and prompt the partners to develop alternate strategies and approaches when needed.

    What other sustainability approaches work for others who work in this space?

    • Kate Vitasek says:

      Bryan – thanks for your comment! The items you point out are all great – and are components of setting up a sound governance. You can get to a great Vested deal – but it MUST be sustained and that is the heart of Rule #5 – Insight vs Oversight Governance. Have you read the white paper we wrote on Vested governance with the Corp Executive Board and the International Assn for Contract and Commercial Mgmt. It is in our library and is free for download. The second book – The Vested Outsourcing Manual – goes into great detail about what goes into a good governance structure for maintaining a Vested Agreement. If you are doing the 4 items you have listed above – you are definitely going in the right direction. You can pick up more good tips from the Vested Outsourcing Manual. Happy to chat live if you want as well. Just email me and we can set up some time to talk. kvitasek@utk.edu I’d love to hear what others think as well!

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