This is part 2 our EkaLore’s series about Outsourcing Challenges in 2022 and beyond.
Global enterprises need to refine and distill actions from ‘vision statements’ and ‘management initiatives’ into metric-driven operational implementations and deployments. Overloaded senior managements and their direct reports are charged with making transformations and adding compliance functions while making measured objectives in tough times. Operational and technology managers can turn for help to outsourcers and outside assistance, or higher qualitied talent. Current searches for the hiring the ‘right talent’ (see our series The Hunt for Talent) can be time consuming and arduous. Managers will often seek answers and plans for outside providers (often first in the form of proposals). These enterprise needs are clear opportunities for outsource providers with related demands. The demands of customers drive the needs of outsource providers for different talent at different stages of transforming enterprises and operations.
Global enterprises, even in a sector like finance or compliance, have requirements to understand complex landscapes. The complexities are driven by globalization, legal and regulatory compliance, standards conformance, and emerging industries (like Greentech and transformations of the energy sector). Such complexity drives first movers, and followers, to seek risk reduction and new approaches. By their business nature, outsourcers are highly qualified to provide legacy and traditional solutions with repeated approaches. Demands are made on outsourcers by potential customers to absorb capital-level risks, reduce re-capture of front-end costs, and minimize project risks. Outsource providers are ill-equipped to absorb the risks of implementing new technologies (with project failure rates above 50%), transforming business processes (with losses until operational metrics improve), or leading changes where the outsourcer has very little control with lots of accountability. The complexities thus challenge the business models of outsourcers at critical points while providing only high risk paths.
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