Title: Visibility, Control: The Just Desserts of TCM
Publisher & Author: Aberdeen Group
Length: 4p
Description: A leading consumer products company who is one of the largest branded dairy operators in the U.S. needs to streamline manual total telecom cost management invoice audit for its single largest IT-expense category in the company. The enterprise engages Profit Enhancement Services to build a solution in which bill processing activities are outsourced and vendor relationships are improved. The client immediately realized cost savings of 20% of annual spend and freed up internal resources to focus on strategic goals.
Download Now: Aberdeen Success Story (103.47 kb)
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| Title: The Coming Commoditization of Processes
Publisher: Harvard Business Review
Length: 8p
Author: Thomas H. Davenport
Description: Despite the much-ballyhooed increase in outsourcing, most companies are in do-it-yourself mode for the bulk of their processes, in large part because there's no way to compare outside organizations' capabilities with those of internal functions. Given the lack of comparability, it's almost surprising that anyone outsources today. But it's not surprising that cost is by far companies' primary criterion for evaluating outsourcers or that many companies are dissatisfied with their outsourcing relationships. A new world is coming, says the author, and it will lead to dramatic changes in the shape and structure of corporations. A broad set of process standards will soon make it easy to determine whether a business capability can be improved by outsourcing it. Such standards will also help businesses compare service providers and evaluate the costs vs. the benefits of outsourcing. Eventually these costs and benefits will be so visible to buyers that outsourced processes will become a commodity, and prices will drop significantly. The low costs and low risk of outsourcing will accelerate the flow of jobs offshore, force companies to reassess their strategies, and change the basis of competition. The speed with which some businesses have already adopted process standards suggests that many previously unscrutinized areas are ripe for change. In the field of technology, for instance, the Carnegie Mellon Software Engineering Institute has developed a global standard for software development processes, called the Capability Maturity Model. For companies that don't have process standards in place, it makes sense for them to create standards by working with customers, competitors, software providers, businesses that processes may be outsourced to, and objective researchers and standard-setters. Setting standards is likely to lead to the improvement of both internal and outsourced processes.
Download Now: The Coming Commoditization of Processes (238.19 kb)
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