The Outsourcing Blog: Horses for Sources

Horses for Sources have galloped off to a new website

2010-03-03T07:14:03-05:00

The Horses can now be found grazing at the creatively-named new URL: HTTP://WWW.HORSESFORSOURCES.COM See you over there...

Why we've formed an analyst organization

2010-03-02T07:49:20-05:00

So H-Day has arrived, and we can finally reveal what it actually means. It's the day Horses for Sources became more than a blog... today it becomes an advisory analyst organization focused exclusively on researching global outsourcing strategy. So why on earth do this? A natural and logical progression. Simply put, it's a natural progression for Horses. Having developed such an effective community for collecting so many opinions, having such strong outreach to all the key stakeholders in the outsourcing business (buyers, vendors, intermediaries, investors, academics etc), leveraging the three-year development of Horses as the platform for a new research...

Buy some innovation right here... just talk to Bob

2010-02-26T08:05:17-05:00

Eradicating the Innovation Dearth in Business Process Outsourcing: Practical Advice on how to Achieve it. A discussion between Phil Fersht and Bob Cecil.

Are you ready... for H Day?

2010-02-23T15:05:32-05:00

Plug in your headphones, crank up the volume and ask yourself... are you ready for H day? (may take a few seconds to load if you have a cheap computer) How many of these images from the history of the Horses do you remember?

The great analyst firewall: will banning analysts from blogging damage the traditional research business, or help create an entirely new one?

2010-02-21T14:16:10-05:00

The technology and services industry is desperately searching for its mojo, and analysts can help provide the catalyst. Muzzling their views by keeping them from using social-media channels is a worrysome trend

The Atwood Files: Adam Smith got it right!

2010-02-20T08:57:44-05:00

Over 350 years ago he observed and defined the concept of markets, specialization of labor, demand, all of it. As capitalism grew we saw these concepts first in the industrial revolution. Entrepreneurs saw that they could manufacture goods, weave cloth, and generally produce things by breaking a job down into parts and then using their capital to create machines that produced regular, repeatable pieces in large quantities with smaller and smaller amounts of labor.

The Industry Spoke! Hear it all on a free webcast... just for you

2010-02-18T06:42:58-05:00

For all 1055 of you who perservered through completing our survey, and then being subjected to six lengthy diatribes about what it all means, we can finally put this little study to bed with a FREE WEBCAST on Friday 5th March at 11.00 AM Eastern standard time. CLICK HERE TO REGISTER

The Industry Speaks, Part VI: Customers increasingly look to industry-specific BPO solutions, but which vendors will ultimately invest to define and deliver them?

2010-02-15T18:09:17-05:00

The move to greater domain-specificity is intrinsically tied to the business utility model of the future, where we are starting to see signs of the convergence of SaaS, Cloud and BPO/ITO models within an engagement structure

Have some outsourcing vendors already thrown in the innovation towel?

2010-02-14T15:09:13-05:00

While some vendors are talking a big game regarding how they intend to broaden their outsourcing services and consulting work with clients, a lot of their current management clearly don't have a lot of confidence to bring on the talent to help them do just that

Will the BSkyB verdict tone-down outsourcing vendor hype?

2010-02-11T07:49:26-05:00

This sets a dangerous precedent for the outsourcing business, when you consider the sheer volume of complex outsourcing deals that are currently (and soon to be) in play.

Spreading the love for Valentine's Day...

2010-02-10T12:35:33-05:00

Has it occurred to you how unromatic and unsexy outsourcing can make you feel sometimes? Fed up with those rate cards, those legal wrangles and those penalty clauses, when all you really want is a nice big hug? Well, the team over here at the Horses wants to make you feel loved this year on Valentine's Day. So drop us an email and we'll make send you a free copy of our recent "Seeking a New Normal in Outsourcing Delivery" survey findings... whether you're a customer, a vendor, or even a consultant... we love you all equally (well sort of).

The Industry Speaks, Part V: As the mid-market looks aggressively at Finance & Accounting BPO, the move to standardize heats-up

2010-02-09T10:15:55-05:00

When you consider that close to a quarter of mid-market customers will seek their first forays into F&A BPO this year, you know where this industry is headed...

The Industry Speaks, Part IV: Cloud services will separate the "real" business services providers from the body-shoppers

2010-02-06T12:58:11-05:00

Cloud Computing presents the biggest opportunity for today's services vendors to deliver blended IT/BPO services. Vendors pushing standard labor arbitrage services under a thin veneer of "Cloud marketing" will quickly get cast aside as the table-stakes get a lot tougher

Vot happens now?

2010-02-02T06:42:41-05:00

An hilarious parody of the Magic Quadrant

The Industry Speaks, Part III: Demand for outsourcing is reaching new heights, but will vendors disappoint?

2010-01-31T10:42:31-05:00

What are customers intending to do this year with their outsourcing strategies? When when we spoke to 1055 customers, intermediaries and vendors across the global sourcing industry earlier this month, they gave us the real picture

The Industry Speaks, Part II: When the labor arbitrage deals dry-up (and they will), customers will select vendors that can deliver business-value beyond basic low-cost services

2010-01-24T14:31:12-05:00

let's talk about outsourcing vendors, and what on earth they are going to do when these tasty labor-arbitrage deals start to fizzle-out.

Want to know about global sourcing? Then we'll lend you Anand...

2010-01-21T17:52:33-05:00

Whether it's cash management in Casablanca, or payroll in Patagonia, there's one guy who'll have a Harvey Ball polished and ready for you. Enter Everest Group's rock-loving, paint-balling enthusiast, Anand Ramesh, who lives and breathes global sourcing locations. However, before you read the excellent guest article he's submitted for us, please spend a few minutes assisting Anand with his new study to understand how companies are leveraging offshore locations – particularly for high-value services – and how the landscape is likely to evolve. Just click here to access his study, and he'll send you a summary of the "Market Vista"...

The Industry Speaks, Part I: it's not all about cost anymore, outsourcing provides a powerful change-agent

2010-01-17T20:33:07-05:00

So it's time to drip-feed the intentions and experiences of 1055 buyers, intermediaries and vendors into the global sourcing industry. We'll be discussing the results from our "Seeking the New Normal in Outsourcing Delivery" in full at the Global Services Conference on 28th January, but the nuances behind why - and how - companies are exploring sourcing delivery models, as we come out of a painful recession into an uncertain climate, need to be aired and discussed. There's been a lot of talk about a "New Normal", or a "Reset Economy", that things will never be quite the same as...

Searching for the cloud? Then look to the Highlands...

2010-01-16T13:33:47-05:00

My earliest memory of outsourcing was ringing to complain about a utility bill and getting a polite, but calmly authoritative, Scottish girl at the end of the line. I knew immediately that I wasn't going to get a ton of mileage with my quest for justice that day... We've spent a lot of time discussing outsourcing locations here, and one we've overlooked is Scotland. And it's not because I'm a Brit and the Jocks don't like us very much - it's simply the fact that they don't make a great deal of noise about what a stellar location they have....

Alsbridge doubles-down on data-rich consulting with TAG acquisition

2010-01-12T01:50:01-05:00

We've had a huge amount of debate concerning the future direction of outsourcing advisory services, and today, we can exclusively reveal a sea-change in the advisor industry landscape with Alsbridge's acquisition of TAG, the leading life-cycle expense management advisor for network services. Essentially, this is the first genuine coming-together of IT and network-connectivity sourcing services within an advisory model. While most traditional outsourcing advisors are firmly-rooted trying to maximize cost-efficiencies for their clients through lower-cost labor offerings in IT and BPO, they often overlook the additional savings on the table they can generate for CIOs through smarter sourcing and management...

Weekend recap: the "new normal" in the outsourcing delivery business

2010-01-09T10:52:23-05:00

Thanks to all of you who participated in December's survey "Seeking The New Normal in Outsourcing Delivery". In total, 1051 companies gave their opinions, with a strong mix of buyers, intermediaries and providers participating to give us an unprecedented pulse on the outsourcing industry. About time we had less prophesying and some actual hard facts on what's really going on out there... In anticipation of releasing the results of the study later next week, I'd like to recap some recent thoughts on where the industry is headed, to help make sense of what is really happening in the industry. And...

Adieu to a research legend

2010-01-07T18:51:23-05:00

Right on cue with our discussion earlier this week, the "void" just got bigger as software analyst legend, Bruce Richardson, announced his departure from the analyst community to take on the role of Chief Strategy Officer at software giant Infor. Known in the industry as "Mr AMR", Bruce has entertained us for years with his famous "First Thing Monday" newsletter and blog. I, personally, have Bruce to thank for bringing me back to the analyst fold with AMR in 2007, and being a guide and mentor to myself and many other analysts during his role as Chief Research Officer. Like...

Getting even more Ruest... Part Dieu

2010-01-07T11:46:10-05:00

And now time for the long-awaited second part of our interview with our francophonic snowboarding services stud Sebastien Ruest, IDC's Veep for Global services research. (Vous pouvez accéder à la première partie ici). And ladies, please no more emails asking me whether he's single... Phil Fersht: Sebastien, let’s talk about Cloud, where you’ve been particularly involved. In a nutshell, can you help us separate the hype from reality, and explain to our readers whether this is just the next buzz-phrase in the IT business, or a genuine way we’re going to access services in the future? Do we have any...

The great analyst roll-up is on... who'll step into the void?

2010-01-05T17:36:20-05:00

So the "great analyst roll-up" is in full swing, with Gartner's announcement today to acquire another competitor, this time the Burton Group, for 56 big ones. This comes hot on the heels of my former firm, AMR Research, also being acquired by Gartner. I won't go into the details of the mechanics of these mergers, as you can read exhaustive commentary, debate and analysis over at Carter Lusher's blog. However, I did want to discuss what this means to our sourcing industry. Limited choice for alternative opinions. As most of Gartner's competitors couldn't really compete on brand, they've had to...

New Year's outsourcing resolutions for service providers

2010-01-01T12:52:49-05:00

Wouldn't it be refreshing if some outsourcing executives decided to try doing a few things differently this year? Here are some suggestions... Stop using the word "transformation". Start trying to be different from the rest of the pack, or at least admit it if you're not really any different (but are probably cheaper, or have a sexier brand, or something). Stop espousing that you will bring "innovation" to a finance function when you're just lumping the invoice processing offshore. Stop claiming you're recent infrastructure management deal was a "cloud transformation". In fact, stop using the word "transformation". And please stop...

...and the more serious moments of '09

2009-12-29T11:48:57-05:00

And now we can finally put that year to bed, surely we can look forward to a more normal 2010. Of course we can ;) Here are some of the more serious moods and moments from a rather epic year in our industry...in chronologial order: Satyam: It was like riding a tiger, not knowing how to get off without being eaten Think before you fire: The cost of replacing IT talent Forget 2006, let's go back to '96 Global business on a Knife-edge: Bonuses, H-1Bs and Naïve Protectionism Where should outsourcing vendors invest their marketing dollars in this climate? Datamonitor...

The best of Horses in '09... the funnies

2009-12-26T11:42:43-05:00

And on a less serious note, here's the more amusing side to 2009... Meaningful use of Twitter discovered Obama to ban offshore outsourcing India shows us how to innovate Swine Flu can impact your service levels Proof that you can stabilize your operations eventually... It's all about hitting the ground running after you sign the contract Remote Infrastructure Management anyone? Getting to a point where you can lay in one place and not have to do anything ever... Being middle-seated... all the way to Orlando Payback can be sweet...

2009 - the year of papering over cracks

2009-12-23T15:01:03-05:00

Most people I speak to can't wait for 2009 to be put to bed. People suddenly awoke to the realization that everything they have grafted so hard to achieve in their lives could be seized from them, because their economy had failed them. Like everything else in this world, we always wait until its too late before taking drastic action, and 2009 epitomized this reactionary mindset that dominates so much of our society. However, I did want to sign off from 2009 with a dose of realism... fancy phrases such as "New Normal", or "Preparing for the Recovery" only wash...

Come to Jersey City in January

2009-12-19T11:26:13-05:00

Have you ever had such an irresistible request? Well... here's your chance to tour the exquisite delights of the picturesque tree-lined New York suburb, with its manicured lawns, fine eateries and state-of-the-art museums, where you can enjoy the famous hospitality of the jovial, friendly local folk who'll make you feel right at home, shrouded in luxury and fine local culture. However, sight-seeing in paradise, drenched in lovely winter sunshine, isn't all you can look forward to during this visit of a lifetime... you can also make a sneaky detour to the Global Services Conference, where you can mingle with the...

Getting a bit of Ruest (Part I)

2009-12-17T00:20:15-05:00

If there was a Nobel Prize for industry analysts, this guy walks away with it - he's super cool, talks a good game, and has done very little beyond, well, be super-cool and super-smart... and with a French accent to boot. So today, I thought we'd give IDC's Sebastien Ruest the chance to prove there's a bit more substance behind the snowboarding, hockey-stick-wielding playboy façade :) Sebastien's proving IDC's nearshore model by leading it's global services research from Canada, and developing a solid reputation in the industry as one of the industry analysts who "gets it". So I thought it...

Mystery Governance Predictions

2009-12-15T11:27:30-05:00

Remember our mystery blogger who evangelizes on best practices for vendor management? Well that mysterious individual has challenged me to a predictions dual this morning (gasp), where he /she said "I'd be willing to wager a drink on who gets a higher percentage right. After all, I didn't bet on England in the World Cup, so I'm pretty optimistic :)" We'll see about that sunshine... In any case, our friend has come up with some pretty eye-catching and profound statements, for example: "After testing outsourcing’s shallow waters, companies new to outsourcing will cliff dive into the deep end without further...

Simply Lowell (Part II)

2009-12-11T08:54:11-05:00

So here's the eagerly-awaited second part of the Lowell Williams experience, where we decided to give him 30 minutes of fame. Over to Equattera's HRO mega-star with the handbrake firmly in the off position...

2010 Predictions for the Outsourcing Industry

2009-12-05T14:52:09-05:00

Firstly: my apologies to everyone for hopping on the perennial "Predictions Bandwagon". One may as well say "Stop press everyone, I'm just such an important smarty-pants you should listen to ME ME ME!" As Newt Gingrich told us earlier this year: "There is not one living being that can accurately predict the outcome of this crisis, all we can do is continue the dialog and the answers will slowly unravel". Secondly: we've conducted two major studies with outsourcing buyers globally this year (and am currently sifting through 800 responses - and counting - from our current industry study). While we...

Are prices really dropping, or are services merely being disaggregated?

2009-12-04T11:19:40-05:00

One of the advisors which has really made a strong move in the sourcing business this year is Alsbridge. Much of that has been down to its strong track record with clients, but its also made some canny investments to augment its advisory services. One of these I've had some exposure to is ProBenchmark, which has been running some excellent webcasts looking into how pricing trends and dynamics in IT services. I caught up with CEO Ben Trowbridge the other day, and he wanted to let us know about a webcast ProBenchmark is running next week - you can register...

Simply Lowell (Part I)

2009-12-01T20:01:36-05:00

Lowell, quite simply, is the most respected practitioner in HR Outsourcing. Not only has he spent many years as an actual HR leader, he also worked for the "original" HRO provider Exult, moved into the sourcing world with TPI, before joining Equaterra in 2004 to head their HRO advisory practice. He has been responsible for many HRO engagements - and he has somehow survived to tell the tale.

Complete our survey. Now

2009-11-25T14:29:27-05:00

Before you tuck into your Thanksgiving turkey and guzzle a gallon of bad quality Chardonnay, please take 10 minutes to complete our industry-wide study entitled "The New Normal in Outsourcing Delivery". And if you're in Asia or Europe, currently giving thanks for US declaring itself independent from everyone else, this includes you too. Anyhow, we are actively seeking the collective opinions and experiences of services customers, providers, and advisors and need 10 minutes of your time to complete this quick survey, designed especially for the patience-challenged, attention-deficit-inclined executive. Simply click on the following link: Click here to complete our survey...

Can IT overcome its credibility crisis?

2009-11-21T16:13:55-05:00

There's little doubt about what's been providing the rocket-fuel behind the rebounding services business: IT outsourcing. Simply put, there are plenty of eager providers to choose between, they have access to most of the technical skills companies need, and their rates are far cheaper than retaining or hiring staff inhouse. Some are also getting pretty handy at becoming consultative business partners, and not simply low-cost body shops. Our recent study tells the real story - 50% of enterprises are either kick-starting, or scaling-up, their ITO right now. "So tell us something new", I hear you groan into your laptop screen......

Xerox-ACS: Cloud Services Potential, or Dinosaurs Huddling Together for Warmth?

2009-11-18T14:28:03-05:00

Our recent discussion on Xerox's acquisition of ACS certainly served up some meaty discussion, and even got picked up by CIO.com, among other media. My dear friend, and former colleague at AMR Research, Dana Stiffler(pictured), recently sent us in some of her views on the merger. Dana actually got promoted today to VP and Head of Research for AMR's services research, where she will be offering clients "cashable benefits, or your money back" with her group's output. Anyhow, thought this a good time to showcase her talent... Over to you, Dana: Xerox-ACS: Cloud Services Potential, or Dinosaurs Huddling Together for...

Eulogizing on the Eurozone with Principal Euan

2009-11-13T15:11:04-05:00

Attend any European analyst meeting and there’s one character guaranteed to be propping up the bar. Scratch that, there are normally about 50 analysts propping up the bar. But in the midst of the throng you will undoubtedly find the stolid Euan Davis of Forrester Research. I recall a conversation with Euan back in '95 when I told him “you should give this analyst lark a try” (If you want to know what he working on in those days, drop me a note…). Anyhow, the story began from there, with Euan rising through the ranks at IDC’s European operation, making...

The "new normal" in the outsourcing delivery business

2009-11-07T13:17:26-05:00

This truly has been a pivotal quarter for the outsourcing business. As we've discussed several times here, many services contract decisions have been delayed during the economic crisis while organizations worked out the best course of action to get through the downturn. In Q3 we've started to see definitive action, with many service providers meeting, and some even beating, Wall St. expectations. But while some providers are clearly delivering, others are struggling to compete in this "new normal". So what is this "new normal"? Operational service provision is commoditizing and leveling the playing field. Coming out of the recession, there...