Governance Value Statement: 2011 alone. No other related group Customer - We have the necessary processes, tools & technologies of Value Statements increased by in place to effectively & efficiently govern this outsourcing contract/ this factor during the 2011 period. relationship. Provider - Our client has the necessary processes, tools & technologies in pIace to effectiveIy & efficiently govern this outsourcing ARE THE ECONOMY, INCREASED REGULATIONS & TECHNOLOGY contract/relationship. DISPARITY TO BLAME?
Financial Performance Value Statement: Customer - We have the processes, tools & technologies to easily monitor, manage & report on the business case realization of outsourcing. Provider - Our client has the processes, tools & technologies to easily monitor, manage & report on the business case realization of outsourcing.
Based on reviews of customer and service provider comments collected during VHCS engagements and from select interviews of VHCS users (both customer and service provider) regarding this trend, Service Quality Value Statement: we’re getting divergent opinions. Customer - We have adequate transparency into supplier performance First and foremost, outsourcing & supporting data/systems to appropriately understand supplier users tell us that they’re under performance. Provider - Our client has adequate transparency into the gun or knife to continuously supplier performance& supporting data/systems to appropriately optimize the financial performance understand supplier performance. of their relationships, given persistent economic uncertainty. When taking the VHCS, customers and service These continued pressures require greater real-time providers score their level of priority and level of access and transparency to outsourcing performance agreement with 40 Value Statements across the five (5) related data and information. In most cases users key areas of business value in outsourcing: Financial surveyed felt that their service providers either should Performance, Service Quality, Capabilities, Risk/ or do have the tools/technologies and capabilities to Compliance and Governance. The Value Statements provide them enhanced transparency and access to are presented to the customer and service providers outsourcing data/information they need, however as represented above with only a slight difference in their service providers appear reluctant to given them wording of the value statements due to the context of ready access to their tools/technologies to do so. The how they’re asked. following comment was typical of outsourcing users: In 2011, use of VHCS has accelerated especially in “I know my service provider has the data/information the pharma, energy, financial services and healthcare and transparency into the processes. They’ve got to sectors. What we’re seeing as a result, especially in the have this in order to run their business, however they three related Value Statements above, is a consistent appear reluctant or unwilling to give us real-time widening or gap in the agreement scores between access to the data/information.” Service providers customers and service providers. Our experience on the other hand felt strongly that their outsourcing tells us that if a customer and service provider have customers either had the appropriate level of access a gap in their agreement score of 1.5 plus or minus, to data, information and process transparency or this is an area of value that the organizations should they (the customers) had the tools of their own to discuss to determine if there is an alignment issue in accomplish it. One comment from a service provider their expectations and/or perceptions. In the case read; “We’re using the latest tools and technologies of the 3 Value Statements above, the average overall and we’re fully ITIL compliant, what more could my GAP score doubled from approximately 1.0 to 2.0 in client ask for?” When this same service provider was globalizationtoday.com
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