Entrepreneurship enthusiast with experience in product and business development. Currently, helping software teams reach high-performance through data.
Hi and thank you for noticing my post, which is definitely not the best academic piece of work but should definitely be just an eye-opener to the fact that you can do more to improve vendor relationships and increase the likelihood of success.
The percentage you talk about is from a study by Deloitte from 2016 (a bit old, I know) stating that only 22% of the respondents from a variety of fields are not happy with their outsourcing provider. This is though not the point that I would like to make.
Companies all over the world and in all areas are increasing their budgets for outsourcing especially in IT with the main reason being cost-cutting (70% of all respondents of this study Deloitte Global Outsourcing Survey 2020).
At the same time, and I quote from the same study:
"A few of the clients we talked with expressed disappointment that providers were not delivering the necessary value. Some of them are responding by bringing the work back inhouse. While this approach may work, in some cases it is a step too far. Investing in strong service orchestration is key, as it will help ensure organizations realize maximum benefits from their service provider ecosystem, resulting in comprehensive accountability for action and reduced value leakage."
The bringing the work back inhouse statement highly relates to your comment.
I would like to make the case that for a successful management of vendors you need to better understand how they work, how things get delivered and most of all where are drivers and barriers of my time-to-market - the most important KPIs for innovative companies. The same goes when having internal and external developers.
As a startup we engage with freelancers and are very happy about it and we recommend it.
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Hi and thank you for noticing my post, which is definitely not the best academic piece of work but should definitely be just an eye-opener to the fact that you can do more to improve vendor relationships and increase the likelihood of success.
The percentage you talk about is from a study by Deloitte from 2016 (a bit old, I know) stating that only 22% of the respondents from a variety of fields are not happy with their outsourcing provider. This is though not the point that I would like to make.
Companies all over the world and in all areas are increasing their budgets for outsourcing especially in IT with the main reason being cost-cutting (70% of all respondents of this study Deloitte Global Outsourcing Survey 2020).
At the same time, and I quote from the same study:
"A few of the clients we talked with expressed disappointment that providers were not delivering the necessary value. Some of them are responding by bringing the work back inhouse. While this approach may work, in some cases it is a step too far. Investing in strong service orchestration is key, as it will help ensure organizations realize maximum benefits from their service provider ecosystem, resulting in comprehensive accountability for action and reduced value leakage."
The bringing the work back inhouse statement highly relates to your comment.
I would like to make the case that for a successful management of vendors you need to better understand how they work, how things get delivered and most of all where are drivers and barriers of my time-to-market - the most important KPIs for innovative companies. The same goes when having internal and external developers.
As a startup we engage with freelancers and are very happy about it and we recommend it.