Is transformational outsourcing the right response to changing market requirements?
Transformational outsourcing refers to consulting-led contracts where management consultants work with a customer to improve the performance of a business process or area of business functionality. The redesigned business process then requires redesigned or new systems, and so another part of the service provider company (the systems integrators) comes in and performs this work. Finally, the outsourcing arm of the service provider business comes in and runs the system, with an up-front contractual agreement that during the life of the outsourcing contract the improved system will yield an agreed business outcome that is based upon the benefits bestowed by the process and system redesign. With a finance & accounting (F&A) process that outcome could be an agreed improved time, from booking orders to billing for them; within a customer call centre solution the business outcome may be, say, a 20% reduction in customer churn. Clearly no outsourcing provider could enter such an agreement wit
