Developing Sustainable Outsourcing Strategies is a Multi-Faceted Balancing Act

Jerry Klawitter, Director, KPMG LLP Today’s outsourcing buyers have a wealth of delivery, contractual, provider, and location alternatives from which to choose. Yet, despite their increasing maturity, many buyers are missing the mark in attaining the most advantageous and strategically value-added outsourcing deals. This is in large part due to the sheer complexity caused by [...]

If IT Doesn’t Get It, Neither Do You

You may think you own the global process, but if your global business services are dependent upon a disconnected or uninterested IT group, breakdowns aren’t far ahead. A longstanding fractious relationship tends to exist between process owners and technology owners.  Not to beat up exclusively on the IT folks, but with so much riding on [...]

Look Out World Here Comes China

The Chinese government through the Ministry of Commerce (MOFCOM) is highly engaged in growing BPO. There is significant commitment to build the necessary infrastructure and provide the proper business and tax incentives to make China as appealing as possible. Read this blog by KPMG LLP’s Gary P. Nowak to learn about his outsourcing location analysis trip that included Dalian China.

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 [...]

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 [...]

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 [...]

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 [...]

Cloud: More of the Same for Less, or Enabling True Business Transformation?

Stan Lepeak, Director, KPMG Global Sourcing Advisory Research KPMG will release the first edition of its global cloud Pulse survey via a webcast on November 15th.  The cloud Pulse survey is modeled after the sourcing advisory Pulse family of research studies.  Results are based on surveys and interviews with advisors globally in KPMG member firms’ [...]

Get in Shape if You Want to Innovate

Lee Ayling, Partner, Sourcing Advisory, KPMG in the UK Would you like your service provider partners to deliver innovation in your organisation’s outsourcing contracts? The answer is probably yes. Can you define innovation? The answer is probably no. This is a scenario experienced by many managers of outsourcing contracts getting to grips with innovation. Before [...]

Can You Really Afford Benchmarking?

It’s a lot of time, resources and patience if you’re just looking for the right number. John Masley, Senior Manager, KPMG Shared Services and Outsourcing Advisory Just about every outsourcing contract has a benchmarking clause. The threat of the word itself strikes fear in most providers. Objectively, can your business really manage the time-out, direct and indirect [...]