Outsourcing Substantial Portions
Outsourcing isn’t what it used to be. When executives began outsourcing substantial portions of their operations more than a decade ago, they did it to offload activities they declared to be noncore in order to cut costs and improve strategic focus. Today, however, companies are looking outside for help for more fundamental reasons — to facilitate rapid organizational change, to launch new strategies and to reshape company boundaries. In doing so, they are engaging in transformational outsourcing: partnering with another company to achieve a rapid, substantial and sustainable improvement in enterprise-level performance.
Our Transformational Outsourcing is designed around a program jointly developed between us and the enterprise to integrate change, capability, resources and business structures – around shared accountability. Our contract is driven by business outcomes, and accommodates re-alignment based on future realities. We maintain the relationship which is structured for ‘portability’ in the event the client needs to disengage. Our Transformational Outsourcing is designed to maximize incentives for both parties. It accepts that each party has specific capabilities and constraints; the relationship offers incentives to both parties to win (or lose) together. Our tansformational Outsourcing relies on what we and the client can generate in strategic terms, such as Earnings Growth, Market Share Gain, Employee Productivity and Industry Leading Customer Experience.
Transformation Outsourcing Agreements
Innovation and market dominance form the underlying premise. Verifiable trust, two-way information transparency, integration of workflows and executive commitment in both parties to the success of the partnership are the mechanisms used by us for governing Transformation Outsourcing agreements.
Our Transformational Outsourcing aspires to provide us product leadership, customer intimacy or operational excellence, as applicable. It aligns with our desire to dominate your chosen markets.
Transformation implies a rapid, step-change improvement in performance. We would not call a program transformational if it took decades for the effects to become apparent. Nor would we put it in this category if it had only a small impact.
Transformation means big change fast. Of course, all change is relative. We consider an initiative transformational when it achieves larger, faster, and more lasting impacts than we might reasonably expect.