Building value-adding IT outsourcing relationships
A global multinational conglomerate had successfully used its purchasing power, prestige and leadership in IT outsourcing to secure highly beneficial terms with its IT suppliers. However, even after years of working with the client, the suppliers (from India, the Americas and China) did not understand how to perform as partners of the businesses in order to add greater value.
Addressing the fundamentals
GBPA’s identified significant blockers to value creation, which it has addressed through instigating a change programme designed to build relational and collaborative capabilities across both the global organisation and the supplier community.
This has included the definition and development of the core capabilities required for all key individuals involved in managing the outsourcing relationships; clarity about the global CIOs’ needs in support of the requirements for their businesses; the introduction of relational indicators to assess what type of relationships exists, where it needs to be and what must change for the nature of the relationship to travel to the desired state; and a series of collaboration activities to build more effective relationships across all parts of the global organisation and the suppliers.
Increased responsiveness
The suppliers have been able to respond positively to the business’s rapidly changing needs in the downturn, and are better equipped to deliver greater value-add as the global economy picks up.