News @ TPI
TPI Provides Solutions to Top 10 Problems with Outsourcing
- Using industry-leading change management and governance best practices, TPI offers guidance on achieving outsourcing success as part of its Innovation Agenda
HOUSTON, TX., 21 April 2008 – TPI, the largest sourcing data and advisory firm in the world and a unit of Information Services Group Inc. (ISG) (NASDAQ:III), a leader in the information-based services industry, has announced solutions for the top 10 most common problems impeding successful outsourcing implementations. TPI found that the most common problems in outsourcing implementations lie primarily with poor change management and governance.
TPI created an Innovation Agenda to improve the constantly evolving global outsourcing industry by providing practical applications for creating more successful outsourcing transactions and building stronger relationships between client and provider. TPI’s solutions to solving the top 10 problems with outsourcing are part of the Change Management pillar of the Innovation Agenda.
Through interviewing outsourcing providers and client organizations, TPI determined that a lack of understanding of the post-contract processes and decision rights is the number one problem in outsourcing implementations (the first 6-18 months that a change occurs in an outsourcing relationship). Some of the other key issues include little or no support from client leaders who are receiving the services; inability to meet pent-up demand for services; a client team that is not in place, too small or lacks the required skills; a loss of key talent or poor knowledge transfer; and a culture clash between the client and service provider. TPI’s solutions offer guidance to avoid or quickly alleviate these potential problems.
TPI’s solutions are centered on leadership attention, readiness and focus, and the need for both parties to properly plan and prepare for potential issues with outsourcing implementations. By weaving change management drivers such as leadership vision, organizational and procedural alignment, governance readiness and others, these problems can be avoided or overcome.
“TPI created these solutions to help our clients, and the industry as a whole, to have smoother and more successful transition periods and outsourcing relationships,” said Shawn McCray, partner, TPI. “Our findings indicate that unmanaged change and lack of preparation for post-implementation management are the biggest problems clients face as opposed to issues related to specific contract terms, pricing or technology. All of these problems can be overcome with the right leadership utilizing the mitigation practices we recommend, and we fully believe that attention to these issues is the only way for service providers and clients to achieve expected business results.”
The solutions will be presented at TPI’s Sourcing Industry Conference (SIC), a forum for sourcing industry leaders from the service provider and law firm communities to improve existing relationships and build new ones. In addition to gaining insight from TPI on the state of the sourcing industry, including trends and market directions, the conference is a forum for service providers and law firms to learn more about working with TPI and our clients.
Under the theme of this year’s conference, “Tipping Points: Critical Moments in the Sourcing Life Cycle,” TPI will discuss the other pillars of TPI’s Innovation agenda (in addition to Change Management), and provide critical strategies for facilitating successful outsourcing and offshoring relationships throughout the various sessions. In addition, TPI client presenters will walk through best-in-class case studies to demonstrate examples of positive outsourcing transactions that have successfully navigated critical moments within the sourcing cycle.
To read TPI’s paper on Change Management, “The Top 10 Problems with Outsourcing Implementations (And How to Overcome Them)”, please visit http://www.tpi.net/pdf/papers/Top_10_Problems-with_Outsourcing.pdf.
About TPI
TPI, a unit of Information Services Group, Inc. (ISG) (NASDAQ:III) is the founder and innovator of the sourcing advisory industry, and the largest sourcing advisory firm in the world. We are expert at a broad range of business support functions and related research methodologies. Utilizing deep functional domain expertise and extensive practical experience, TPI’s accomplished industry experts collaborate with organizations to help them advance their business operations through the best combination of business process improvement, shared services, outsourcing and offshoring. For additional information, visit www.tpi.net.
About Information Services Group, Inc
Information Services Group, Inc. (ISG) (NASDAQ:III) was founded in 2006 to build an industry-leading, high-growth, information-based services company by acquiring and growing businesses in advisory, data, business and media information services. In November 2007, the company acquired TPI, the largest independent sourcing advisory firm in the world. Based in Stamford, Conn., ISG has a proven leadership team with global experience in information-based services and a track record of creating significant value for shareowners, clients and employees. For more, visit http://www.informationsg.com.