Friday | 9 January, 2009
CIO
Are We Happy Yet?
Despite compliance with the most stringent service level agreements (SLAs) and hard-nosed key performance indicators, there often remains the nagging doubt that you're really not getting everything you really should - or at least wanted - out of the outsourcing relationship.
Tim Mendham 06 August, 2004 09:33:29

Even when an outsourcing project goes as planned, many CIOs still feel like they're not getting everything they paid for.

Everyone has an outsourcing horror story. And whether it is your own or that of the friend of a friend of a colleague, they make you wonder if the course of any outsourcing project runs smoothly. You would be right to wonder.

Opinion varies, but suggestions are that anywhere from 30 to 90 percent of outsourcing relationships are problematical. As far as the issues go, you have probably heard the war stories: constant downtime, unavailable help desks, soaring add-on costs and so on, ad nauseam.

But what happens when things seem to go as planned or, at least, as contracted? Are we happy then? The answer is still no.

Despite compliance with the most stringent service level agreements (SLAs) and hard-nosed key performance indicators, there often remains the nagging doubt that you're really not getting everything you really should - or at least wanted - out of the outsourcing relationship.

A PA Consulting survey last year revealed what it described as a paradox: "companies are satisfied with their outsourcing suppliers' performance, yet there is a feeling that outsourcing is failing to deliver anticipated business benefits".

Jim Longwood, a research director at Gartner, predicts that "50 percent of CXOs will feel that their outsourcing deal hasn't achieved the success/performance they feel it should, while 60 percent of CIOs are happy".

You can dispute the figures, but the fact that PA and Gartner can measure such "feelings" is a sign of things to come.

All of the industry analysts agree that outsourcing is broadening its range from the nuts and bolts of utility or infrastructure practice to more innovation or transformational activities. (The fact that this is where the suppliers' greatest profit margins lie might be purely coincidental. Suggest to most CIOs that utility deals are on the way out and you might understand otherwise.)

Presuming this shift is real, then the relationships, the outcomes and associated metrics to judge success or otherwise by necessity become increasingly intangible. How do you measure innovation? By the number of new products or processes implemented; the shifts in market share? How do you measure transformation? By the number of people replaced; new markets entered?

Welcome to the age of measuring the unmeasurable.

Featured Whitepaper Sponsors
Market Place
 

Smart SOA World Tour

Discover how SOA can create smarter outcomes for your business.

Attend and learn:

  • How SOA is helping leading companies to become more agile
  • Where you should be applying SOA processes in your company
  • The top SOA implementation mistakes to avoid

Click here for more information.
  • +

    CIO Live Podcast #79: Brent D Taylor, author of The Outsider's Edge: The Making of Self-Made Billionaires Part II 05 October, 2007 06:00:00

    For his new book, The Outsider's Edge: The Making of Self-Made Billionaires, social researcher Brent D Taylor spent four years of intensive research investigating the psychological make-up and backgrounds of some of the world's richest men and women, including IT luminaries Bill Gates, Larry Ellison and Steve Jobs. Taylor discovered that, despite working in different industries and coming from different upbringings, they all have one thing in common -- they are all outsiders.
  • +

    CIO Live Podcast #78: Brent D Taylor, author of The Outsider's Edge: The Making of Self-Made Billionaires 28 September, 2007 17:34:25

    For his new book, The Outsider's Edge: The Making of Self-Made Billionaires, social researcher Brent D Taylor spent four years of intensive research investigating the psychological make-up and backgrounds of some of the world's richest men and women, including IT luminaries Bill Gates, Larry Ellison and Steve Jobs. Taylor discovered that, despite working in different industries and coming from different upbringings, they all have one thing in common -- they are all outsiders.
  • +

    CIO Live Podcast #77: Panasonic Speeds Up Trans-Pacific File Transfers, Part III 21 September, 2007 07:00:00

    Part three in our three-part special report from CIO's sister publication Network World in the US, as Paul Desmond reports from the Network World IT Roadmap Conference in Santa Clara, California. With development teams in the US and Japan, Panasonic needed a more efficient way to move very large files between the two locations. Iben Rodriguez, IT consultant for Panasonic Research and Development, explains how a storage-area network and virtual server technology helped speed up WAN performance.
  • +

    CIO Live Podcast #76: Panasonic Speeds Up Trans-Pacific File Transfers, Part II 14 September, 2007 07:00:00

    Part two in our three-part special report from CIO's sister publication Network World in the US, as Paul Desmond reports from the Network World IT Roadmap Conference in Santa Clara, California. With development teams in the US and Japan, Panasonic needed a more efficient way to move very large files between the two locations. Iben Rodriguez, IT consultant for Panasonic Research and Development, explains how a storage-area network and virtual server technology helped speed up WAN performance.
  • +

    CIO Live Podcast #75: Panasonic Speeds Up Trans-Pacific File Transfers, Part I 07 September, 2007 07:00:05

    Part one in our three-part special report from CIO's sister publication Network World in the US, as Paul Desmond reports from the Network World IT Roadmap Conference in Santa Clara, California. With development teams in the US and Japan, Panasonic needed a more efficient way to move very large files between the two locations. Iben Rodriguez, IT consultant for Panasonic Research and Development, explains how a storage-area network and virtual server technology helped speed up WAN performance.
  • +

    TJX Maxx hacker banged up for 30 years 09 January, 2009 11:26:00

    Key figure in the infamous TJX Maxx Wi-Fi hack of 2005 has been sentenced to 30-years in prison by a Turkish court.
    Maksym Yastremskiy, the Ukrainian accused of being a key figure in the infamous TJX Maxx Wi-Fi hack of 2005, has been sentenced to 30-years in prison by a Turkish court.
  • +

    Data breaches rose sharply in 2008, says study 08 January, 2009 08:27:00

    More than 35 million data records were breached in 2008, according to the Identity Theft Resource Center.
    More than 35 million data records were breached in 2008 in the U.S., a figure that underscores continuing difficulties in securing information, according to the Identity Theft Resource Center (ITRC).
  • +

    Rogue SSL certificate exploit puts VeriSign on the spot 07 January, 2009 11:04:00

    Wishes "white hat" researchers had notified VeriSign before public demo.
    Following the success of researchers last week in creating a false SSL certificate based on VeriSign's RapidSSL brand, the company is scrambling to explain how it happened, how it's preventing it from reoccurring, and whether its other SSL certificate-generation services are at risk.
  • +

    With Gaza conflict, cyberattacks come too 05 January, 2009 08:03:00

    Pro-Palestinian hackers have defaced thousands of sites following attacks in Gaza.
    The conflict raging in Gaza between Israel and Palestine has spilled over to the Internet.
  • +

    5 ways to secure your Blackberry 18 December, 2008 12:58:00

    What do Tom Cruise and the McCain campaign have in common? They have both been bitten by the loss of a Blackberry. Mobile expert Dan Hoffman gives advice on how to keep your cherished mobile device safe, even if it's out of your hands
    What do Tom Cruise and the McCain campaign have in common? They have both been bitten by the loss of a Blackberry. Mobile expert Dan Hoffman gives advice on how to keep your cherished mobile device safe, even if it's out of your hands.
CIO Webcast Innovation #8 - What are the biggest roadblocks to IT's involvement in innovation at your company?
Watch the latest latest edition of CIO Innovation which is now available for download.
Watch the webcast
Sign up to the CIO Innovation update email


CIO Live Podcast #79: Brent D Taylor, author of The Outsider's Edge: The Making of Self-Made Billionaires Part II
Listen to the latest edition of CIO Live which is now available for download.
Listen to the podcast
Sign up to the CIO Live email
Whitepaper

The IP Storage payoff: Turning your investment into efficient, affordable results

Recent advances in IP-based storage technologies leverage existing technology and staff to easily and cost-effectively build and maintain sophisticated storage networks. Discover the solutions to your data storage challenges with IP storage.