Out Sourcing: Third Parties to the rescue
Continued from Vol II. Issue 14, MArch 2006
The decision-maker
59 percent of companies that outsource IT services have their CIO's calling the shots on outsourcing.In 35 percent of the cases, the CEO takes the final decision.
Selecting the partner
The responsibility of selecting the appropriate outsourcing service provider is as important as managing a company's core activity.
The IS survey reports that technical competence along with service and support capabilities were the evaluation parameters ( both 73 percent ) that organisations used when selecting an outsourcing partner.
At 48 percent, price was a laggard among evaluation parameters. Only 41 percent rely on a vendor's understanding of a company's strategy needs. 88 percent of pharmaceutical/chemical companies and 80 percent of companues in the services vertical rely on technical competence levels of the partner, and 92 percent of FMCG/retail organisations look for acceptable service levels when choosing an outsourcing partner.62 percent of companies in the auto and auto component vertical look at price as the most important parameter for selecting an outsourcing service provider.
Geographical location doesn't seem to be important for many (18 percent) , and few ( 6 percent) depend on a consultant's recommendation while deciding to outsource.
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