By Willcocks Leslie P. Lacity Mary C.
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Additional resources for Global Sourcing of Business and IT Services
These suppliers are among the few organizations that have a significant global presence to service such large deals. We found significant variability in the success of such deals. Given the suppliers are the same, it is logical to assume the differentiating factor is the client. Put simply from the supplier perspective: good clients make for good relationships. The ideal client has significant experience with outsourcing the right activities, crafting the right types of contracts, and ensuring supplier success through the previously discussed roles and practices.
To illustrate how these three different assessment perspectives might yield different prescriptions, consider the example of an ERP implementation in a global manufacturing company. 4 Different portfolio assessment perspectives: what core activities should be kept in-house? The activities are so idiosyncratic and customized that keeping them in-house is less costly than outsourcing. Valuable: the resource can be used to exploit strategic opportunities or ward off threats Governance: strategy, mission, and coordination High uncertainty: Activities cannot be clearly defined for effective third-party contracting.
8 Similarly, the account executive of a major supplier summed it up in saying, “Outsourcing contracts are agreed in concept but delivered in detail. ”9 A decade of in-depth studies demonstrates that outsourcing cannot be contracted for and then not managed. 10 However, successful outsourcing processes have been given surprisingly scant attention in the literature. Lacity and Willcocks (2001: 291–308) describe a six-phase outsourcing process model. 12 All three recognize the importance of pre-agreement and post-agreement Managing the sourcing process activities and their complexities.