Skip to main content
Insight

Outsourcing is the answer... but what's the question?

I have just finished reading an excellent short paper revisiting SIAM . Not unfortunately historical Thailand, but rather more prosaically "Service Integration and Management."The paper, "Injecting I have just finished reading an excellent short paper revisiting SIAM . Not unfortunately historical Thailand, but rather more prosaically "Service Integration and Management."

The paper, "Injecting life back into SIAM" by my colleagues Rob Shooter and James Buckingham examines projects deploying a service integrator to manage other suppliers. Rob and James shed light on why some projects succeed where others fail and propose a new SIAM 2.0 model based on our experience. Do have a look at our website if you're interested in their conclusions.

Reading the paper made be dip into the archives for a article I published in Spring on Global Business Services. For many years I have been writing about the rationale for outsourcing which is to often seen as a panacea.

In the last decade, a lot of thinking has gone into the strategy of sourcing core services resulting in mature models for outsourcing. Within these models multi-sourcing, right-sourcing or, indeed, SIAM are all options. Without some thought at the start, larger organizations risk tactical decisions on outsourcing which may not maximise benefits or may even cause barriers to smarter sourcing in the future.

Global Business Services represents a new stage in maturity of the sourcing model, mapping the core service requirements of an organization and then deciding whether options from outsourcing or shared services to resource rationalisation might best serve transformation and management of the core service.

Unlike traditional outsourcing , the approach is to ensure an overall Global Business Services framework within which sourcing options are each seen as integrated projects or services. Within this more integrated approach, organisations need a mature approach to internal governance to monitor progress towards the desired model and to continue to adapt to change and disruption.

I am perhaps a little too prone to define things by pointing out what they are not, but to me outsourcing is not a strategy. It is a tool for implementing a strategy. If outsourcing is the answer, then surely the question is "how does my organization best deliver the services it needs to in the future?"

If you want to explore these themes further, my article on Global Business Services is on my LinkedIn profile (https://www.linkedin.com/pulse/global-business-services-aligning-outcomes-strategy-simon-briskman?trk=prof-post).

Sign up to our email digest

Click to subscribe or manage your email preferences.

SUBSCRIBE