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January 12, 2006 Adaptive Sourcing: Outsourcing's New ParadigmOutsourcing Needs A New Business Modelby Julie Giera, Andrew Parker with Tom Pohlmann, Caroline Roeleveld-Hoekendijk |
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Executive Summary
Something is wrong with the outsourcing industry. Despite double-digit growth, providers are facing lower profits, shorter contracts, and unhappy customers. And very few $100 million deals signed today will generate the expected revenues five years into the contract. The fundamental problem? A 30-year-old business model based on inflexibility that doesn't account for the predictable patterns of technology adoption and deployment that every company goes through. The solution? Forrester proposes a new outsourcing business model — Adaptive Sourcing — comprised of flexible contracts, pricing, and service delivery that adapts over time to customer needs and expectations. Adaptive Sourcing will transform the entire outsourcing industry — if vendors have the foresight and courage to adopt it.
TABLE OF CONTENTS
- If Outsourcing Stays The Course, It Will Fail As A Business Model
- Adaptive Sourcing Is The Future
- The Onus Is On Service Providers To Get To Adaptive Sourcing
WHAT IT MEANS
- Outsourcing Will Stage A Resurgence Built On Client Satisfaction
- Related Research Documents
This is an excerpt
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