There is an inherent “right brain / left brain” tension in procuring outsourced services. The right side of the brain seeks innovative service delivery solutions and emphasizes relationship building with the supplier. The left brain seeks a high level of supplier accountability for performance, competitive pricing and favorable contractual terms.…
In last two decades, much of the attention of customers and advisors has focused on outsourcing under the managed services model. The outsourcing era began with infrastructure outsourcing, which evolved from time sharing and facilities management. This was followed by outsourcing of applications maintenance and support and, on a parallel…
Like most everything in life, the making of an outsourcing transaction is a process of taking amorphous ideas and concepts (fuzziness) to a point where there is sufficient clarity for all involved to move forward in a coordinated and desired manner (crispness). While true for all transactional components of an…
On June 22, Pillsbury hosted the first annual Federal Cloud Security Summit, organized by the Washington, DC, chapter of the Cloud Security Alliance (CSA-DC). The keynote address was presented by Sonny Bhagowalia, former Deputy Associate Administrator with the GSA’s Office of Citizen Services and Innovative Technologies and current CIO of…
The press has recently given much attention to the growing difficulty of securing U.S. visas for offshore provider personnel and the impact on U.S. clients. In fact research firm CLSA Asia-Pacific released a report this past week downgrading its outlook for the Indian IT Services Sector citing “the visa issue…
Horses for Sources recently published the output of a study which showed that buyers of outsourced services are saving money, but aren’t seeing a whole lot more. The report stated that over 95% of current buyers of outsourced services view their outsourcing engagements as effective at reducing their operating costs.…
In part one of this post, we examined the challenge of discussing IT demand in terms meaningful to our internal customers. That accomplished, the CIO’s organization must next fulfill that demand by acquiring, integrating and delivering the appropriate service(s), whether sourced internally or from the marketplace. Imagine for a moment…
For most enterprise customers, telecommunications regulation is a fact of life, requiring buyers to do what they can during negotiations to mitigate changes in state and federal law that could result in substantial cost increases during the term of the contract. Now, the Federal Communications Commission (FCC) is considering sweeping…
Typically, Suppliers ask for cost of living adjustments (COLAs) in IT outsourcing agreements to adjust prices periodically for inflation. We believe that the general assumption that a COLA is appropriate to “balance risk” in a three to five year IT deal should be challenged. The Supplier community is highly sophisticated…
On April 13, 2011, the Indian Central Government issued final regulations implementing parts of the Information Technology (Amendment) Act, 2008, dealing with protection of personal information. Pillsbury does not provide legal advice on Indian law, but we have been in contact with the Indian legal community and service providers. Here…