Now for something completely different… Outsourcing Provider Merit Badges

However you like to wile away those sultry summer hours, we can be pretty sure it’s not dreaming up merit badges for outsourcers.  Maybe it’s time to introduce our notorious Deborah Kops to the local bridge club, or growing vegetables or something….”Lord, no!” I hear you cry.  In that case, take it away DK…

Outsourcing Provider Merit Badges

Given the demographics of the industry, it’s probably as stretch to think that many of us know that this year marks the 100th anniversary of the founding of the Girl Scouts. As someone who was a Girl Scout until she was 18 (because co-ed canoe trips were relatively unsupervised—I was not good at knots), and still has her badge sash, I think it’s only appropriate that outsourcing providers have their very own merit badges, too.

Let’s cut the hype about training and certifications—the reality of the outsourcing industry is that you’re not truly a member of the club until you’ve earned sufficient stripes to join the pantheon of those who are battered, bruised, tested and tried—and inextricably dedicated to making outsourcing the model of choice for global—and not-so-global–enterprises everywhere for functions big and small; core or non-core; rules-based and complex;  offshore, nearshore, and even onshore;  automated or leveraging labor arbitrage, regardless of domain.

So, providers of the world, examine your experience to see if you’ve earned Deborah’s top 10 merit badges. And if you can suggest some that I’ve missed, I’ll ask my personal badge maker to get busy.

BID FODDER BADGE The award of the bid fodder badge signifies that the client that you’ve chased for nigh on a year was just using you to put leverage on his current provider to shape up, give some concessions and slash their FTE cost to an under market rate. Or said client had a provider all picked out and opened up the bid process merely to keep the procurement police at bay.

Then, when the inevitable happens, you suffer the agony of hearing all the internal “I told you sos” as you try to justify the fact that you’ve just spent precious time and resource, not to mention trotted out your company’s great and good to the final presentation. After you earn this badge, pick yourself out of the slough of despond, make a promise that you’ll listen to your intuition next time, and only pursue client opportunities without entrenched incumbents or that are not pre-sold.

SCOPE SHRINKAGE BADGE The RFP clearly set forth that the client was outsourcing end to-end in virtually every geography, encompassing all business lines. But by the time the down select numbers three, what was purported to be a cool 1000 heads transitioning over three years shrunk down to accounts payable in Scandinavia (with the promise of untold sourcing riches if it is deemed by the businesses…at their sole discretion… to be successful.)

Talk about throwing a spanner into the works. The infrastructure guys have factored the deal into their facility plans. Your investors finally believe your sales and marketing strategy is paying off. Your CEO has all but named the deal in the last earnings call. Your spouse has emotionally spent the commission. And you’re left with a little pilot with fees that don’t even cover the cost of the pursuit. Consider yourself as having entered the big leagues. Wear your badge with pride.

M&A SURVIVAL BADGE In an era of consolidation, surviving the marriage of two provider cultures and coming on top—or at least with your position intact—takes a rare set of skills:  exuding just the right amount of enthusiasm for what may seem a nonsensical combination; (privately) mourning the loss of the culture you loved; and backing the right political horse, all the while subtly threatening to move on if you don’t get what you want without looking like you’re not a team player.

If your company is the conqueror, being nice to your new colleagues after trashing them in the marketplace when they were the worthy competition earns you credits. And if you are one of the vanquished, the speed with which you are able to pick up the new corporate speak helps you attain the prize.

If you gain responsibility and scope (not to mention a fatter paycheck) through the integration, give yourself 10 extra points. But if the deal is a temporary setback and puts you out on the street, remember that M&A in the outsourcing world is now a fact of life, and ensure you suss out the intentions of your next employer….and vest immediately if you are sold…as you proudly display your badge.

CLIENT MERGER BADGE After a year’s pursuit, and eons getting the operations to green on the dashboard, suddenly your client merges with or is acquired by another company, either with a full complement of provider relationships, or an entrenched cultural aversion to anything ending in –sourcing. And it appears that your client is not calling the shots.

No matter that you’ve saved enough dosh for the client to purchase the Queen Mary II, or that there’s so much satisfaction with your delivery that the relationship manager sings your praises at every SSON or IAOP event; your contract appears to be the outsourcing equivalent of a marked man.

So you enter the survival fray, looking for chinks in the other providers’ armor. You tout out the big guns to demonstrate your undying commitment to the relationship. You start preparing a “compelling value proposition” to proactively head off a client loss. And you put the screws on the delivery team, telling them that 99 percentile performance is now a given. But either the other provider is best golfing buddies with the surviving CEO, or there’s no way on God’s green earth that the company will export jobs offshore, even if it means 200% savings. Give yourself extra credit for a valiant effort, keep in touch with your client because he or she is sure to end up as a buyer elsewhere, and sew on your merged out of a deal badge.

NEW MAN-AT-THE-TOP-BADGE With the first generation of outsourcing leaders now counting their millions while they jet around to play on the world’s leading golf courses, their successors are a very different kettle of fish. The pioneers are now out of the business; the new breed of leader has very different pressures: avoiding being acquired; containing cost in the face of competition and currency fluctuations; satisfying increasingly demanding shareholders; and creating differentiation in a market where clients believe that most cats are black in the night.

Whether the new man has is a superb politician, having been groomed internally to take on a new job, or brought in from the outside without any direct experience in the business (the so-called “strategic” hire), change is inevitable. Those changes could range from the seemingly ridiculous such as forbidding business class travel on 15 hour flights—to the sublime, moving into new lines of business with nary a credential in the entire company. And if the new chief is an outsider, you can bet your booties that he’ll soon transport the culture (and henchmen) from his previous gig.

If you can keep your place in the new org chart, immediately award yourself the badge. It means that you either have 1), a godfather somewhere in the business; 2), good karma; or 3), pictures of someone important. However, if you see the handwriting on the wall soon after he moves into the corner office, and are able to land a better position without being obvious about your loss of power and prestige, you win, too.

MUSICAL CHAIRS BADGE You’ve done such a stellar job selling, solutioning or operating in the insurance domain that management thinks you can learn shipping overnight. Or perhaps you’ve done a great job in India, but someone in power thinks it’s time for you to deliver the same results wearing a Boston Red Sox cap.

Your boss, working on the premise that smart people in the outsourcing industry can do anything, calls your bluff and asks you to open up the Kazakhstani market. He preys on your fealty, reminding you that he accommodated your request to transfer for personal reasons several years ago, and dangles a few hundred shares in front of you while he not-so-subtly tells you that you will be the spoiler in his game of musical chairs. Get the badge either for being a good sport, performing with grace in the new role, or being able to keep your old job despite the fact that you played havoc with the new organizational schema.

10 MONTHS AWAY-FROM-HOME-BADGE Nothing screams outsourcing bona fides like spending the best part of the year solutioning or transitioning in any country where a visa is required. No matter where you are stationed, chances are your company will land a deal big enough to demand the personal sacrifice of spending untold months in a hotel room, serviced apartment or guest house where 1), you cannot swing a cat without hitting the walls; 2), the color beige drives you to drink; 3), there are no English channels on the telly; or 4), mosquitoes have taken up occupancy. And although the company is allegedly family friendly, you’re only permitted one week off every 2 months.

Give yourself points for missing your wedding anniversary or your child’s first day of school, while still being on good terms with your spouse. Add an extra credit if you get a local colleague to help you track down a peace offering in the form of a good deal on  an I-Pad for your teen or diamond earrings for your wife. Tick the days off in your diary while you recite the mantra “never again.” And fasten the badge in a very prominent place, sending the message that you already gave at the office.

ECONOMIZE FOR THE GOOD OF THE COMPANY BADGE As outsourcing margins decline, your management starts to scrutinize every cost. Getting permission to travel or use your cell phone overseas requires something akin to divine intervention. Business class travel (except for a select few) and staying at run-of-the-mill Marriotts are now seen as unjustifiable and unaffordable luxuries. No matter that you’re expected to roll off 15 hour flights with barely sufficient time to wash up in an airport lounge before making that make-or-break client presentation, or the guest house’s air conditioning hasn’t worked for two years—it’s considered inappropriate to waste the company’s money on frivolous expenditures.

In the name of economy, open reqs to fill authorized client service positions, even when paid for by the client, must go to the top of the house before HR will start the search. Attending an industry event means completing a 20 page business case. Making do with a laptop that still runs Windows 2003 is good for the soul.

If you can hold your tongue while the boss spends lots of dosh branding a sports event, or after you find out the ice sculptures at the client event cost $2500 each, you’ve earned your badge. Better yet, if you can get a $125 per night deal in a New York hotel without bedbugs, you’re an economizer extraordinaire.

FUN TIMES WITH PROCUREMENT BADGE 100 page RFIs sent to 14 providers in order to be “compliant.” Best and final bids required without any discussion of actual scope. Questions about your company that are so invasive they ought to be covered by the Official Secrets Act. e-Auctions that make a mockery out of any solutioning process. These stories…and more…render outsourcing truths much stranger than fiction. Whether the procurement department is actually driving the deal, or is carefully monitoring the sourcing leader’s every move, understanding that their modus operandi sometimes can be summed up as the three Cs—control, cutting cost, and compliance—will help you get through selection and contract.

Give yourself credit if you find a way to skirt around the procurement rules without being obvious. Pat yourself on the back if your partner in crime is the sourcing leader. Pump the air if you are still on speaking terms with the procurement manager when the contract is signed (after all, he’ll be monitoring contract compliance going forward). And praise the client’s procurement department to the skies when you write up the case study.

INABILITY TO PLEASE THE CLIENT BADGE The transition is spot on target, or the operating stats meet all SLAs. There’s barely a stray yellow on a very green dashboard. The delivery team’s attrition is within normal bounds. Yet no matter what you do, short of getting on your hands and knees outside the client’s office (or giving him your firstborn), nothing is right. Or ever will be. Either the client team is playing a very elaborate and expensive game of gotcha, or they hold a residual grudge that the good old days of internal command and control are long gone.

Your account leader dreads every Monday morning’s email abuse, and threatens to quit every Tuesday. Supervisors shudder when the client makes his floor rounds during the quarterly business review. Staff refuses assignment to the client, believing that is the equivalent of the career kiss of death.

If you survive a QBR without losing flesh, it’s five points towards your badge. If your boss is entirely sympathetic and does not blame you, award yourself another five. If the client gives your firm a glowing reference, understand that the sun, moon and stars are aligned for the first time in 20 years, and don’t tempt fate by asking again. If the client renews and expands scope, praise whichever deity you believe in. (And move ever so deftly to get reassigned to another account.)

Deborah Kops, HfS Research Fellow

Deborah Kops, Research Fellow, HfS Research... thriving on meritocracy

How many of these badges have you earned? Perhaps it’s time to set up a scout troop replete with a Provider Pledge (paraphrasing the Girl Scout pledge). So hand over heart  and repeat after me, “On my honor, I will try, to do my duty to attract and scale good clients, to deliver value better, faster and cheaper, with transparency and good governance for all.”

Stay tuned for the Client’s Outsourcing Merit Badges. You deserve them as well.

Deborah Kops is Research Fellow, HfS Research (click here for bio)
This blog and its content is copyright of Sourcing Change © 2012. All rights reserved.

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14 Comments

  1. DJ
    Posted July 10, 2012 at 3:56 pm | Permalink

    Excellent post which brought forth quite a few chuckles. Can’t wait to see the merit badges for the buyers.

  2. Posted July 10, 2012 at 4:00 pm | Permalink

    Sometimes the truth is funnier than fiction. Glad you enjoyed the post, DJ. I enjoyed writing it.

  3. Posted July 11, 2012 at 4:56 am | Permalink

    Magnificent stuff Deborah. Hilarious and oh-so-resonant.

  4. Bruce Ficke
    Posted July 11, 2012 at 9:47 am | Permalink

    As an Eagle Scout I relate to the concept of earning merit badges, and just like in scouting, some merit badges were much harder to earn than others, for any number of reasons. The reality is, however, if you want to be an Eagle (in scouting or in outsourcing) you have to acknowledge the challenges and be willing to pursue your end goal to successful conclusion. You won’t succeed in obtaining every merit badge, but lay out a solid strategy and you can be an “Eagle.” Remember, a good sense of humor is invalable! Nice job Deborah!

  5. Posted July 12, 2012 at 11:04 am | Permalink

    Thanks, Bruce. At times i think this industry takes itself much too seriously. It’s time to see the humor in its particular challenges

  6. D. Clarck
    Posted July 15, 2012 at 2:51 pm | Permalink

    Yeah, right you are. There are many outsourcing service. Many different service organizations are exist to provide this. These are very popular. Thanks for sharing the article.

    bpo

  7. Tim
    Posted July 16, 2012 at 8:57 am | Permalink

    I wish my vendors were as creative delivering to me as you are creative thinking of ways for us to define the world we/they actually live in…..creatively….but accurate. Wow, so much creativity….I’m tired.

  8. Paul Cantante
    Posted July 16, 2012 at 2:17 pm | Permalink

    Thanks for this. I will take pride in wearing my badges.

    Perhaps next we can get vests to put them on for our next negotiation so we can compare badges.

  9. Posted July 19, 2012 at 5:56 pm | Permalink

    Hello, Deborah. This is E.G.Nadhan, Distinguished Technologist, HP Enterprise Services.

    Something completely different, allright. Really enjoyed your post and your characterization of the various outsourcer scenarios. In addition to the amusing characterization of each scenario, there are two aspects about this post that stand out for me: a) It is a self-potrayal by the outsourcer of how they perceive themselves in any given scenario, b) the usage of telling personalities and facial expressions in the graphics that characterize the given outsourcer’s experience.

    Using personalities to characterize inanimate objects is something that I believe we tend to do as humans because we can associate so well with the feelings of our fellow human beings.

    I have dabbled in this space as well a little while associating personalities with applications or as I call them — Applities.

    In this post http://bit.ly/OcBZ15 — I discuss our tendency as humans to engage in such characterization whether it be applications, little engines, outsourcers or even cloud service providers.

    Please check out my post http://bit.ly/OcBZ15 at your convenience and let me know what you think.

    Really enjoyed reading your article.

    Twitter: @NadhanAtHP

  10. Posted July 20, 2012 at 2:01 pm | Permalink

    E.G.–your blog makes my little scribble seem far more insightful that i intended. But i do believe that we forget the fact that we are in a people business and that there are repeatable themes in how we go about the business of outsourcing. Glad you enjoyed

  11. subra
    Posted July 25, 2012 at 3:20 am | Permalink

    Great article Deb and yes a lot of these resonate with what i have seen in organizations. A couple of merit badges would be on

    Price conundrums – the provider is pushed for more and more price cuts and increased value adds as economy struggles and the supplier struggles

    Mis – transformation – a whole lot of organizations have now moved from just outsourcing to transformation outsourcing, but their expectation of transformation and what they get from the provider is different. The provider gets pushed and shoved around to pull a rabbit out of the hat and in the end of it all provides a monkey which he tries to string back to the supplier

    cheers
    subra

  12. Posted September 27, 2012 at 4:32 am | Permalink

    Thank you for your article Deborah – very poignant, thought-provoking, humorous and entertaining. I am relatively new to the world of business process outsourcing, and I somehow feel I increased my bpo culture knowledge by a factor in the 10 minutes it took to read your article.

    Looking forward to more please!

    Andy

  13. Claude Imbt
    Posted September 27, 2012 at 11:09 am | Permalink

    A deliciously humorous view of the inane realities of this business described so eloquently as to leave no doubt that your merit badge sash is gloriously replete.

    Well done Debra!

  14. Claude Imbt
    Posted September 27, 2012 at 11:16 am | Permalink

    A deliciously humorous view of the inane realities of this business described so eloquently as to leave no doubt that your merit badge sash is gloriously replete.

    Well done Debra!!

2 Trackbacks

  1. [...] is the original post: Now for something completely different… Outsourcing Provider Merit … Comments [...]

  2. [...] In my last article I listed the merit badges that any outsourcing provider professional worth his salt must earn before they consider themselves a bona fide member of the fraternity. But the clients of the world doubly deserve their very own merit badges, earning their stripes not only by dealing with providers, but also herding the cats we call “internal customers.” And together, that’s no mean feat. [...]

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