Outsourcing is not dead or dying – it just needs to be done properly
Summary
Many outsourcing service providers have contracts in place that lack serious rigour in areas such as scope and timescales, and have misunderstood penalties.But this is the basis on which to achieve economies of scale and is also the failing of a number of business process outsourcing (BPO) organisations.Other points are made, but these are true of many enterprises and are not specifically outsourcing-related: Capita’s lack of strategy, inadequate risk management (taking on too many high-risk contracts), and financing by debt.Outsourcing organisations should have simpler structures, including focused and funded (to have the right tools) internal HR and technology functions.Even Gill Pimmer’s article in the Financial Times on 23 April arrived at conclusions that are a little odd – Capita to compete with consultancies, such as Accenture?