Buyers must invest in outsourcing skills

12 April 2013

Want the latest procurement and supply chain news delivered straight to your inbox? Sign up for the Supply Management Daily

12 April 2013 | Adam Leach

Buyers and providers of outsourced services want to improve the quality of service but are not investing in the skills required to deliver the transformation.

A report, Is good enough really good enough?, published this week by HfS Research and Accenture, found buyers are increasingly looking to get more than just cost savings from outsourcing services to third parties. Of the 282 enterprises that responded, 83 per cent identified business objectives beyond cost cutting as critical or important.

However, while there would appear to be a strong appetite to extract greater strategic value from the buyer/provider relationship, neither side appears to be investing in the skills required to deliver it.

On the purchasing side, only around a third of respondents believe those in charge of managing the relationship with the provider can drive innovation. On the provider side, just around half have formal training programmes in place to give staff relationship management skills.

Mike Salvino, group chief executive – business process outsourcing (BPO) at Accenture, said: “If outsourcing is to deliver on its full potential, buyers as well as providers need to invest in developing the skills and talent to capture the greater levels of value available from fourth and fifth generation BPO solutions. The [study] highlights the growing talent gap between what the industry and its clients aspire to achieve and the lack of sufficient investment in people to make it happen.”

The paper suggested while both sides put time and resources into the early days of the contract, particularly to mitigate risk, there is less focus on continuous improvement through the deal’s lifetime. It called for skills in contract management teams to be revamped.

LATEST
JOBS
Swindon, Wiltshire
upto £40K base (+ Paid overtime and corporate benefits)
Honda Manufacturing Ltd
Kew gardens, Richmond upon Thames, London (Greater)
£37,000 - £42,500 per annum pro rata, depending on skills and experience
Kew Royal Botanic Gardens
SEARCH JOBS
CIPS Knowledge
Find out more with CIPS Knowledge:
  • best practice insights
  • guidance
  • tools and templates
GO TO CIPS KNOWLEDGE