Is There Value in Paying Provider Performance Incentives for Over-Achieving Service Level Agreements (SLAs)?

John Masley, KPMG Management Consulting, Shared Services and Outsourcing Advisory Buyers of outsourced enterprise services–especially those with big hearts who want to do the right things for the right reasons–often ask us if financially incentivizing their service provider when it exceeds SLAs helps foster the partnership. In most cases, I recommend against it. Why? SLAs [...]

Three Operational Improvement and Cost Savings Tips for Insurers

Joe Zanko, Director, Shared Services & Outsourcing Advisory In the face of increasing regulatory scrutiny, decreasing margins, and the need for better controls, today’s insurance companies are seeking ways to gain operational improvements and realize cost savings to bolster their bottom lines. Following are three KPMG recommendations to help insurers achieve these goals:  Rebalance contractor/employee [...]

Global Business Services: Where do you rank and what does that mean to your return on equity?

KPMG looks at many clients and models and has amalgamated a scale upon which an organization can understand where they are in their journey to GBS maturity.

Best-of-breed Governance for Best-of-breed Deals

Mark Voytek, Managed Governance Services Leader, KPMG LLP (U.S.) In the past several years, the global outsourcing market for large single-provider deals has flattened. Instead, buyers increasingly are seeking best-of-breed providers for specific services. Shared services centers, meanwhile, are incorporating more services, more functions, and more third-party resources as they strive to improve productivity and [...]

Top 2012 Market Trends: Do More, Spend Less, Hoard Talent, Head East

Stan Lepeak, Global Research Director, KPMG Management Consulting KPMG recently conducted an internal global poll of its firms’ professionals to assess what they view as the top market trends that would impact their clients in 2012. This poll canvassed professionals from the firms’ Management Consulting, Risk Consulting, Audit, and Tax service groups.  KPMG released these [...]

Taking the (Weakening?) Pulse on Global Outsourcing

Stan Lepeak, Director, Global Research, KPMG Management Consulting KPMG recently released the results of its global 4Q11 Sourcing Advisory Pulse Survey. The Pulse surveys provide insights into trends and projections in end-user organizations’ usage of global business services (GBS). The learnings are gleaned from KPMG firms’ advisers, who are working closely with enterprises that are [...]

Outsourcing and the Extended Global Enterprise

Marc Stark, Director, KPMG Shared Services and Outsourcing Advisory The Extended Global Enterprise (EGE) is the next level of maturity in global business services. In this model, leading companies are going beyond labor arbitrage and transactional processing. Instead, they’re breaking down functional silos and assembling capabilities – whether retained, outsourced, shared or distributed around the [...]

Improving Service Delivery (the Old-fashioned Way?) in the Medical Device Industry

Stan Lepeak, Director, KPMG Global Sourcing Advisory Research Vicki Phelan, Director, KPMG Shared Services and Outsourcing Advisory supporting the Pharma and Life Sciences Industry KPMG Management Consulting recently completed a market study assessing how North American-based medical device firms are approaching efforts to improve to global business services (GBS). Other KPMG research conducted across multiple [...]

What to Look for in Next-Generation ITO Deals

Dave Brown, Principal, KPMG Advisory Services When you established your IT outsourcing agreement, you probably did the deal and put it in a drawer, so it may have been a few years since you’ve thought about IT contracts. But now that your contract is coming up for renewal, how can you make the most of [...]

The Ongoing Evolution of Real Estate and Facilities Management Outsourcing Management

KPMG polled REFM outsourcing buyers and service providers on changes to demand and preferences for a range of outsourcing delivery and management model options.