Sunday, 22 November 2009

I attended the NOA Summit in London on 18th and 19th November, where I presented a short paper on "Value for Money in Outsourcing" on the first afternoon.

Other ;-) notable items from the conference included:

    • A shocking throwaway comment from the Network Rail speaker that they "insourced maintenance after some of our suppliers got lazy and killed some people" - words fail me
    • A Cognizant survey had found that only 43% of organizations have tried to quantify the contribution of Outsourcing to the bottom line, with only 19% being "very confident" in the result. No standard measurement approach seems to be in use
    • Compass find that the Happy Client / Happy Vendor combination is rarer than it should be
    • Of ~200 delegates, none were from a manufacturer!
    • There seems to be a tendency to label any international trade in services as offshoring - maybe just "trade" is a better term!
    • Not everything is suited to offshoring: for instance - the initial claims processing call for a domestic insurance claim requires a UK resident level understanding of the vernacular and culture of a standard British house ("skirting boards" anyone?) and "my dishwasher isn't working" greeted with "why, is he sick?"
    • No-one really seems to know what innovation means when required of suppliers!
    • It was claimed that India is now a net inward investor in the UK due to transactions such as Corus, Land Rover Jaguar, Pearl Assurance etc (though I checked the 2008 balance of trade (admittedly a different measure) which was marginally in India's favour).

And finally a salutary lesson. There were two presentations from new CIOs in organisations who had come in and repaired a poor relationship with their incumbent suppliers. I realise I had consulted to both organisations back in 2000 to attempt to repair their poor relationships with their suppliers! Moral of the story - don't attempt to fix the relationship, get a CIO into the client who knows what they are doing!

1 Comments:

At 25 November 2009 22:53 , Anonymous Neil Anderson said...

Great precise Graham

 

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