{"id":1463,"date":"2011-09-21T15:16:00","date_gmt":"2011-09-21T15:16:00","guid":{"rendered":"http:\/\/localhost\/projects\/horsesforsources\/double-dip-part-i_092111\/"},"modified":"2011-09-21T15:16:00","modified_gmt":"2011-09-21T15:16:00","slug":"double-dip-part-i_092111","status":"publish","type":"post","link":"https:\/\/www.horsesforsources.com\/double-dip-part-i_092111\/","title":{"rendered":"Too many providers and advisors are being myopic with their clients and failing to understand their business pressures"},"content":{"rendered":"

Newsflash: \u00a0just because buyers aren’t always in a rush to outsource, doesn’t always mean they are too “short-term focused” or simply “missing the big picture”. <\/strong><\/p>\n

Our latest study<\/a> shows that many buyer executives are, in actuality, in violent disagreement<\/em> with many provider and sourcing advisor executives that their business leaders are too \u201cshort-term focused\u201d:<\/p>\n

\"\"<\/p>\n

When you talk to some (and the operative word being some<\/em>) advisor and provider executives, they are convinced that every company needs to outsource as much of their operations as they can \u2013 and as quickly as they can – so long as they can make the numbers work. It’s this attitude that – in my view – has been holding the outsourcing industry back.\u00a0 Too many provider and advisor executives are overly myopic in their view that business leaders must be “short-term focused”, simply because they don’t pull the trigger on deals fast enough.<\/p>\n

Yes \u2013 corporate politics is a critical component of any outsourcing deal, but today\u2019s smart operations and IT leaders all know that the short-term benefits of outsourcing are \u2013 by and large \u2013 centered on achieving short-term cost-savings from the bottom-line. \u00a0Our recent State of Outsourcing<\/a><\/em> study reveals this dynamic in spades. Moreover, the data also blatantly demonstrates that buyers are yet to be wholly\u00a0convinced<\/em> of the long-term benefits of outsourcing beyond <\/em>cost-reduction:<\/p>\n

\"\"<\/p>\n

What\u2019s more, many business function managers are under intense pressure these days to drive out more tangible cost wherever then can, so their resisting outsourcing (or taking time to do their due diligence) actually implies that many of them are justifiably avoiding rushing into a potentially hazardous irreversible scenario for their organization, if not executed correctly.<\/p>\n

So if a business leader was genuinely short-term focused and had done their homework, they\u2019d already know they could score some points with senior management and save mothership a few shekels by doing some outsourcing.<\/p>\n

Additionally, only 13% of buyers are concerned about the disruption<\/em> caused by outsourcing \u2013 much less than the third of providers and advisors who believe they are – which tells us the issues holding them back are more a lack of conviction<\/em> about the benefits of outsourcing, than the sheer horror of the prospect that their help desk ticketing schedules and accounts receivable remittances are going to disappear down a sewer in Chennai and destroy their company.<\/p>\n

The Bottom-line: Those providers and advisors\u00a0which can demonstrate a genuine understanding of their clients\u2019 business pressures, will win out<\/strong><\/p>\n

You do start to wonder whether many advisors and provider executives really have much understanding of their clients’ business pressures beyond cost-reduction \u2013 and our recent survey data, discussed above, supports this viewpoint.<\/p>\n

When you look at the people some providers employ today, they are often young, hungry sales people who are only focused on \u201cselling cost-reduction\u201d.\u00a0 It\u2019s all they really know and are not experienced enough (or confident enough) to develop and demonstrate a genuine understanding of their clients\u2019 true business pressures. Seeing as many of them previously were trained to sell ERP licenses, or web-development projects, it\u2019s little surprise that they bring this mentality to their clients and end up frustrated that they can\u2019t close deals fast enough.<\/p>\n

What\u2019s more, this also makes you question the mentality of several advisor executives, who clearly are laser-focused on pressuring an outsourcing deal negotiation onto their clients, as opposed to investing time to get closer<\/em> to their overall business dynamics and pressures.<\/p>\n

Providers need to start spending less<\/em> on pointless marketing and investing more<\/em> in hiring and training higher-caliber consultative client-side executives, who can develop much stronger affinities with their clients.\u00a0 Moreover, advisors which want to do more than number-crunch deals, need to hire a balanced team of business consultants, in addition to deal negotiation specialists.<\/p>\n

All-in-all, if buyers only see outsourcing as a cost-reduction lever, they are going to place it in a pecking order of other cost-reduction measures… and it’s not always going to the most effective short-term measure in a tough economy. It’s the job of advisors and providers to educate and demonstrate to buyers the benefits beyond<\/em> cost-reduction, as opposed to sitting back and complaining that most buyers are short-term focused and paranoid about disruption and change.<\/p>\n

Let\u2019s hope this data opens a few eyes before we end up in a depressing race to the bottom, where the lowest cost and very basic operational performance capability, is all that clients can expect from many of today\u2019s providers.<\/p>\n

Thanks to all of you for your contributions to this research \u2013 your views are articulating loudly and clearly what this industry needs to do raise its game,<\/em><\/p>\n

PF.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Newsflash: \u00a0just because buyers aren’t always in a rush to outsource, doesn’t always mean they are too “short-term focused” or…<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[48,847,81,86,832,830,837],"tags":[286],"organization":[],"ppma_author":[19],"class_list":["post-1463","post","type-post","status-publish","format-standard","hentry","category-business-process-outsourcing-bpo","category-hfs-2011-double-dip-recession-study","category-it-outsourcing-it-services","category-outsourcing-advisors","category-sourcing-best-practises","category-sourcing-change","category-the-industry-speaks","tag-economics"],"yoast_head":"\nToo many providers and advisors are being myopic with their clients and failing to understand their business pressures - Horses for Sources | No Boundaries<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.horsesforsources.com\/double-dip-part-i_092111\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Too many providers and advisors are being myopic with their clients and failing to understand their business pressures - Horses for Sources | No Boundaries\" \/>\n<meta property=\"og:description\" content=\"Newsflash: \u00a0just because buyers aren’t always in a rush to outsource, doesn’t always mean they are too “short-term focused” or...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.horsesforsources.com\/double-dip-part-i_092111\/\" \/>\n<meta property=\"og:site_name\" content=\"Horses for Sources | No Boundaries\" \/>\n<meta property=\"article:published_time\" content=\"2011-09-21T15:16:00+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/www.horsesforsources.com\/wp-content\/uploads\/2011\/09\/Doubledip-part-i-short-termism.png\" \/>\n<meta name=\"author\" content=\"Phil Fersht\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@pfersht\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Phil Fersht\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.horsesforsources.com\/double-dip-part-i_092111\/\",\"url\":\"https:\/\/www.horsesforsources.com\/double-dip-part-i_092111\/\",\"name\":\"Too many providers and advisors are being myopic with their clients and failing to understand their business pressures - Horses for Sources | No Boundaries\",\"isPartOf\":{\"@id\":\"https:\/\/www.horsesforsources.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.horsesforsources.com\/double-dip-part-i_092111\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.horsesforsources.com\/double-dip-part-i_092111\/#primaryimage\"},\"thumbnailUrl\":\"http:\/\/www.horsesforsources.com\/wp-content\/uploads\/2011\/09\/Doubledip-part-i-short-termism.png\",\"datePublished\":\"2011-09-21T15:16:00+00:00\",\"author\":{\"@id\":\"https:\/\/www.horsesforsources.com\/#\/schema\/person\/c4f084ff7ad43632f537b3b30918e69f\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.horsesforsources.com\/double-dip-part-i_092111\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.horsesforsources.com\/double-dip-part-i_092111\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.horsesforsources.com\/double-dip-part-i_092111\/#primaryimage\",\"url\":\"http:\/\/www.horsesforsources.com\/wp-content\/uploads\/2011\/09\/Doubledip-part-i-short-termism.png\",\"contentUrl\":\"http:\/\/www.horsesforsources.com\/wp-content\/uploads\/2011\/09\/Doubledip-part-i-short-termism.png\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.horsesforsources.com\/double-dip-part-i_092111\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.horsesforsources.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Too many providers and advisors are being myopic with their clients and failing to understand their business pressures\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.horsesforsources.com\/#website\",\"url\":\"https:\/\/www.horsesforsources.com\/\",\"name\":\"Horses for Sources | No Boundaries\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.horsesforsources.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.horsesforsources.com\/#\/schema\/person\/c4f084ff7ad43632f537b3b30918e69f\",\"name\":\"Phil Fersht\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.horsesforsources.com\/#\/schema\/person\/image\/86ee0c0ac2d033eed87f327162eb27f7\",\"url\":\"https:\/\/www.horsesforsources.com\/wp-content\/uploads\/2020\/11\/phill-150x150.png\",\"contentUrl\":\"https:\/\/www.horsesforsources.com\/wp-content\/uploads\/2020\/11\/phill-150x150.png\",\"caption\":\"Phil Fersht\"},\"description\":\"Phil Fersht is\u00a0a world-renowned analyst, writer and visionary in\u00a0emerging technologies, automation, digital business models, and the alignment of\u00a0enterprise operations to\u00a0drive customer impact and competitive advantage\",\"sameAs\":[\"http:\/\/hfsresearch.com\/team\/phil-fersht\",\"https:\/\/www.linkedin.com\/in\/pfersht\/\",\"https:\/\/x.com\/pfersht\"],\"url\":\"https:\/\/www.horsesforsources.com\/author\/phil-fherst\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Too many providers and advisors are being myopic with their clients and failing to understand their business pressures - Horses for Sources | No Boundaries","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.horsesforsources.com\/double-dip-part-i_092111\/","og_locale":"en_US","og_type":"article","og_title":"Too many providers and advisors are being myopic with their clients and failing to understand their business pressures - Horses for Sources | No Boundaries","og_description":"Newsflash: \u00a0just because buyers aren’t always in a rush to outsource, doesn’t always mean they are too “short-term focused” or...","og_url":"https:\/\/www.horsesforsources.com\/double-dip-part-i_092111\/","og_site_name":"Horses for Sources | No Boundaries","article_published_time":"2011-09-21T15:16:00+00:00","og_image":[{"url":"http:\/\/www.horsesforsources.com\/wp-content\/uploads\/2011\/09\/Doubledip-part-i-short-termism.png","type":"","width":"","height":""}],"author":"Phil Fersht","twitter_card":"summary_large_image","twitter_creator":"@pfersht","twitter_misc":{"Written by":"Phil Fersht","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.horsesforsources.com\/double-dip-part-i_092111\/","url":"https:\/\/www.horsesforsources.com\/double-dip-part-i_092111\/","name":"Too many providers and advisors are being myopic with their clients and failing to understand their business pressures - Horses for Sources | No Boundaries","isPartOf":{"@id":"https:\/\/www.horsesforsources.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.horsesforsources.com\/double-dip-part-i_092111\/#primaryimage"},"image":{"@id":"https:\/\/www.horsesforsources.com\/double-dip-part-i_092111\/#primaryimage"},"thumbnailUrl":"http:\/\/www.horsesforsources.com\/wp-content\/uploads\/2011\/09\/Doubledip-part-i-short-termism.png","datePublished":"2011-09-21T15:16:00+00:00","author":{"@id":"https:\/\/www.horsesforsources.com\/#\/schema\/person\/c4f084ff7ad43632f537b3b30918e69f"},"breadcrumb":{"@id":"https:\/\/www.horsesforsources.com\/double-dip-part-i_092111\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.horsesforsources.com\/double-dip-part-i_092111\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.horsesforsources.com\/double-dip-part-i_092111\/#primaryimage","url":"http:\/\/www.horsesforsources.com\/wp-content\/uploads\/2011\/09\/Doubledip-part-i-short-termism.png","contentUrl":"http:\/\/www.horsesforsources.com\/wp-content\/uploads\/2011\/09\/Doubledip-part-i-short-termism.png"},{"@type":"BreadcrumbList","@id":"https:\/\/www.horsesforsources.com\/double-dip-part-i_092111\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.horsesforsources.com\/"},{"@type":"ListItem","position":2,"name":"Too many providers and advisors are being myopic with their clients and failing to understand their business pressures"}]},{"@type":"WebSite","@id":"https:\/\/www.horsesforsources.com\/#website","url":"https:\/\/www.horsesforsources.com\/","name":"Horses for Sources | No Boundaries","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.horsesforsources.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.horsesforsources.com\/#\/schema\/person\/c4f084ff7ad43632f537b3b30918e69f","name":"Phil Fersht","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.horsesforsources.com\/#\/schema\/person\/image\/86ee0c0ac2d033eed87f327162eb27f7","url":"https:\/\/www.horsesforsources.com\/wp-content\/uploads\/2020\/11\/phill-150x150.png","contentUrl":"https:\/\/www.horsesforsources.com\/wp-content\/uploads\/2020\/11\/phill-150x150.png","caption":"Phil Fersht"},"description":"Phil Fersht is\u00a0a world-renowned analyst, writer and visionary in\u00a0emerging technologies, automation, digital business models, and the alignment of\u00a0enterprise operations to\u00a0drive customer impact and competitive advantage","sameAs":["http:\/\/hfsresearch.com\/team\/phil-fersht","https:\/\/www.linkedin.com\/in\/pfersht\/","https:\/\/x.com\/pfersht"],"url":"https:\/\/www.horsesforsources.com\/author\/phil-fherst\/"}]}},"authors":[{"term_id":19,"user_id":3,"is_guest":0,"slug":"phil-fherst","display_name":"Phil Fersht","avatar_url":{"url":"https:\/\/www.horsesforsources.com\/wp-content\/uploads\/2024\/02\/Phil-Fersht-HFS-Updated.jpg","url2x":"https:\/\/www.horsesforsources.com\/wp-content\/uploads\/2024\/02\/Phil-Fersht-HFS-Updated.jpg"},"job_title":"","first_name":"Phil","last_name":"Fersht","user_url":"http:\/\/hfsresearch.com\/team\/phil-fersht","description":"Phil Fersht is\u00a0a world-renowned analyst, writer and visionary in\u00a0emerging technologies, automation, digital business models, and the alignment of\u00a0enterprise operations to\u00a0drive customer impact and competitive advantage"}],"_links":{"self":[{"href":"https:\/\/www.horsesforsources.com\/wp-json\/wp\/v2\/posts\/1463","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.horsesforsources.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.horsesforsources.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.horsesforsources.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.horsesforsources.com\/wp-json\/wp\/v2\/comments?post=1463"}],"version-history":[{"count":0,"href":"https:\/\/www.horsesforsources.com\/wp-json\/wp\/v2\/posts\/1463\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.horsesforsources.com\/wp-json\/wp\/v2\/media?parent=1463"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.horsesforsources.com\/wp-json\/wp\/v2\/categories?post=1463"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.horsesforsources.com\/wp-json\/wp\/v2\/tags?post=1463"},{"taxonomy":"organization","embeddable":true,"href":"https:\/\/www.horsesforsources.com\/wp-json\/wp\/v2\/organization?post=1463"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.horsesforsources.com\/wp-json\/wp\/v2\/ppma_author?post=1463"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}