{"id":1483,"date":"2011-07-21T20:44:00","date_gmt":"2011-07-21T20:44:00","guid":{"rendered":"http:\/\/localhost\/projects\/horsesforsources\/facts-about-outsourcing-part-7_072111\/"},"modified":"2011-07-21T20:44:00","modified_gmt":"2011-07-21T20:44:00","slug":"facts-about-outsourcing-part-7_072111","status":"publish","type":"post","link":"https:\/\/www.horsesforsources.com\/facts-about-outsourcing-part-7_072111\/","title":{"rendered":"The undisputed facts about outsourcing, Part 7: Service-culture is the new differentiator"},"content":{"rendered":"

Our new study of 1350 outsourcing industry stakeholders<\/a>, conducted with our friends at the Outsourcing Unit at the London School of Economics, continues to reveal home-truths about what’s really going on in the business. \u00a0Quite alarmingly, we can also reveal that many providers are not entirely in synch with what their customers actually want<\/em> from them.<\/strong><\/p>\n

We asked \u00a0a cross-section of buyers with\u00a0significant\u00a0influence<\/em> over outsourcing decisions, to reveal the critical attributes they seek in a provider. At the same time, we asked providers what attributes they believe<\/em> their clients deem critical. \u00a0And \u00a0– guess what – their are significant gaps between what clients want and what providers think<\/em> they want:<\/p>\n

\"\"<\/p>\n

Providers are underestimating the importance buyers (34% compared to 49%) are placing on their\u00a0ability\u00a0to help address their change management<\/strong> and governance<\/strong> challenges. \u00a0This indicates a significant communication problem is going on in industry – buyers are clearly realizing they need a ton of help and are actually looking to providers to deliver it. \u00a0We believe some providers are\u00a0simply unaware of the extent to which buyers are concerned\u00a0about these issues, and are over-focused on being price-competitive, demonstrating operational delivery capability and risk mitigation.<\/p>\n

Moreover, to prove further this communication gap between buyers and providers, 40% of buyers see the culture<\/strong> of a provider’s delivery organization as a critical attribute, compared to only 20% of providers. \u00a0This begs the question whether many providers ever stop to examine seriously their delivery culture and how it gels with their clients. \u00a0How can so many miss the importance their culture has on their clients’ decision-making? \u00a0Again, the answer has to be a lack of good ol’ communication<\/em>.<\/p>\n

Analytical insight<\/strong> is also becoming increasingly important to buyers (27%), with many providers – again – underestimating the extent to which those decision-makers want to learn more about their\u00a0capabilities. \u00a0Are providers simply convinced their clients and prospects are only interested in the basic table-stakes of outsourcing?<\/p>\n

The bottom-line: understanding and communicating service-culture is the critical component of successful outsourcing<\/strong><\/span><\/p>\n

HfS believes that the knowledge and intentions of providers’\u00a0clientele\u00a0is quickly maturing, and they need to find smarter ways to communicate with them, understand what’s really important and invest in their services to respond to their needs. \u00a0Currently, the outsourcing industry has a problem – providers either aren’t listening to their clients, or simply aren’t being given the environment to listen.<\/p>\n

Let’s face facts here – outsourcing has\u00a0historically\u00a0been far too reliant on contractual terms, to the detriment of the softer elements that are needed to foster better provider\/buyer relationships. \u00a0And it still is. \u00a0However, what’s transpiring is that buyers are increasingly looking for more from their provider to help them better\u00a0manage their outsourcing engagements. They don’t want continually\u00a0to spend millions each year on consulting support to improve their governance\u00a0capabilities, their processes, their analytics, their innovation roadmaps etc.; they want this stuff embedded in the day-to-day service-culture of their partner.<\/p>\n

HfS ultimately sees three root causes inhibiting this development:<\/p>\n

    \n
  1. Buyers need to try harder to get the message to providers about what’s really important to them;<\/li>\n
  2. Advisors, consultants and intermediaries need to help facilitate (not\u00a0restrict) more communicative environments for buyers and providers (pre and post contract);<\/li>\n
  3. Providers need to spend\u00a0more time<\/em>\u00a0demonstrating\u00a0how their service-culture is the right fit with prospective buyers, and how they can help them with all the painful change and governance issues they are going to face over the long-haul.<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

    Our new study of 1350 outsourcing industry stakeholders, conducted with our friends at the Outsourcing Unit at the London School…<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[48,81,832,830,842,837],"tags":[303],"ppma_author":[19],"yoast_head":"\nThe undisputed facts about outsourcing, Part 7: Service-culture is the new differentiator - Horses for Sources | No Boundaries<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.horsesforsources.com\/facts-about-outsourcing-part-7_072111\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The undisputed facts about outsourcing, Part 7: Service-culture is the new differentiator - Horses for Sources | No Boundaries\" \/>\n<meta property=\"og:description\" content=\"Our new study of 1350 outsourcing industry stakeholders, conducted with our friends at the Outsourcing Unit at the London School...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.horsesforsources.com\/facts-about-outsourcing-part-7_072111\/\" \/>\n<meta property=\"og:site_name\" content=\"Horses for Sources | No Boundaries\" \/>\n<meta property=\"article:published_time\" content=\"2011-07-21T20:44:00+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/www.horsesforsources.com\/wp-content\/uploads\/2011\/07\/The-undiputed-facts-part-7a2.jpg\" \/>\n<meta name=\"author\" content=\"Phil Fersht\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@pfersht\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Phil Fersht\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.horsesforsources.com\/facts-about-outsourcing-part-7_072111\/\",\"url\":\"https:\/\/www.horsesforsources.com\/facts-about-outsourcing-part-7_072111\/\",\"name\":\"The undisputed facts about outsourcing, Part 7: Service-culture is the new differentiator - 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