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Change Management, Poor Governance Top Hindrances in BPO Engagements
TPI offers guidance on achieving outsourcing success as part of its Innovation Agenda
Houston — May 9, 2008 — The most common problems in business process outsourcing (BPO) implementations lie primarily with poor change management and governance, according to a recent study from sourcing data and advisory firm TPI.
As part of what it is calling its Innovation Agenda, TPI, which is a unit of Information Services Group Inc., offered solutions for what it said are the top 10 most common problems impeding successful outsourcing implementations.
Through interviewing outsourcing providers and client organizations, TPI determined that a lack of understanding of the post-contract processes and decision rights is the number one problem in outsourcing implementations (the first six to 18 months that a change occurs in an outsourcing relationship).
Some of the other key issues include little or no support from client leaders who are receiving the services; inability to meet pent-up demand for services; a client team that is not in place, too small or lacks the required skills; a loss of key talent or poor knowledge transfer; and a culture clash between the client and service provider. TPI's solutions offer guidance to avoid or alleviate these potential problems.
TPI said its solutions are centered on leadership attention, readiness and focus, and the need for both parties to properly plan and prepare for potential issues with outsourcing implementations. By weaving change management drivers such as leadership vision, organizational and procedural alignment, governance readiness and others, these problems can be avoided or overcome, the firm said.
"Our findings indicate that unmanaged change and lack of preparation for post-implementation management are the biggest problems clients face as opposed to issues related to specific contract terms, pricing or technology," said Shawn McCray, a partner at TPI. "All of these problems can be overcome with the right leadership utilizing the mitigation practices we recommend, and we fully believe that attention to these issues is the only way for service providers and clients to achieve expected business results."
TPI said its Innovation Agenda is aimed at improving the constantly evolving global outsourcing industry by providing practical applications for creating more successful outsourcing transactions and building stronger relationships between client and provider. TPI's solutions to solving the top 10 problems with outsourcing are part of the Change Management pillar of the company's Innovation Agenda.
The solutions will be presented at TPI's Sourcing Industry Conference (SIC).
As part of what it is calling its Innovation Agenda, TPI, which is a unit of Information Services Group Inc., offered solutions for what it said are the top 10 most common problems impeding successful outsourcing implementations.
Through interviewing outsourcing providers and client organizations, TPI determined that a lack of understanding of the post-contract processes and decision rights is the number one problem in outsourcing implementations (the first six to 18 months that a change occurs in an outsourcing relationship).
Some of the other key issues include little or no support from client leaders who are receiving the services; inability to meet pent-up demand for services; a client team that is not in place, too small or lacks the required skills; a loss of key talent or poor knowledge transfer; and a culture clash between the client and service provider. TPI's solutions offer guidance to avoid or alleviate these potential problems.
TPI said its solutions are centered on leadership attention, readiness and focus, and the need for both parties to properly plan and prepare for potential issues with outsourcing implementations. By weaving change management drivers such as leadership vision, organizational and procedural alignment, governance readiness and others, these problems can be avoided or overcome, the firm said.
"Our findings indicate that unmanaged change and lack of preparation for post-implementation management are the biggest problems clients face as opposed to issues related to specific contract terms, pricing or technology," said Shawn McCray, a partner at TPI. "All of these problems can be overcome with the right leadership utilizing the mitigation practices we recommend, and we fully believe that attention to these issues is the only way for service providers and clients to achieve expected business results."
TPI said its Innovation Agenda is aimed at improving the constantly evolving global outsourcing industry by providing practical applications for creating more successful outsourcing transactions and building stronger relationships between client and provider. TPI's solutions to solving the top 10 problems with outsourcing are part of the Change Management pillar of the company's Innovation Agenda.
The solutions will be presented at TPI's Sourcing Industry Conference (SIC).
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