Assessing the Operational Efficiency of Outsourcing Governance

by Mike Beals and Stan Lepeak

The value and importance of outsourcing governance in an outsourcing effort is in many ways self-evident and intuitive. Outsourcing governance is the vehicle through which buyers can ensure the benefit is achieved. Given the increasingly complex nature (e.g., multi-sourced, multi-tower, multi-geography) of outsourcing today, good governance is more important than ever. EquaSiis continues to find, however, that many buyers struggle with their outsourcing governance efforts. This is due to inadequate resources, skills, processes and tools. It is also due to the lack of information or inability to build a solid business case required to make the investment to improve these capabilities. One aspect of developing such a business case is clearly assessing and understanding current state governance capabilities and efficiencies or inefficiencies as the case may be. This Perspective paper reviews the results from EquaTerra and EquaSiis research that assesses and measures the operational performance characteristics of buyers managing major outsourcing efforts.

EQS Market Assessment E2002 OG Ops Efficiency