tag:blogger.com,1999:blog-5972682861284115398.post263025415449784534..comments2023-08-19T02:36:32.774-07:00Comments on Sourcing Realities: Stratifying the Provider WorldPeter Allen in Charlestonhttp://www.blogger.com/profile/13366748628323814438noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5972682861284115398.post-76884242510392263402009-09-05T10:05:28.292-07:002009-09-05T10:05:28.292-07:00Joe;
Great to hear from you.
First, I'd hate...Joe;<br /><br />Great to hear from you.<br /><br />First, I'd hate for my observations to be overly-generalized. They derive from a relatively small number of outsourcing provider firms. And - more importantly - they relate to my candidacy in an executive role and, therefore, could be colored by that situation.<br /><br />That said ... I continue to feel that many provider companies are hamstrung by the same challenges facing their clients - an inability to shed their own legacy business models.<br /><br />If you built a multi-$B business on the back of staff augmentation, then being a transformational partner for your clients is a stretch in a number of dimensions.<br /><br />Having the right aspirations is a start, but being adept at really implementing the changes is quite difficult. The reasons you mention are all evident in the firms I met with. But there's one more factor that's important to note: do the clients of the provider give it "permission" to reach beyond the comfort zone around which the initial relationship was formed?<br /><br />Maybe that falls in the "political" category. Being known by your clients for being really good on one domain does not convey permission to move into an adjacent segment.<br /><br />Bottom line: the industry has a deep roster of very smart executives leading solid companies. But, the acceptance (by the buy side) of transformational relationships is still specious as best. In my view, this is an artifact of the staff augmentation emphasis of the past 5+ years. Clients came to view the industry as bringing value through labor arbitrage and little other levers.<br /><br />So ... how do we change perceptions?? I have some ideas on that which I will post soon.<br /><br />Best regards,<br /><br />PeterPeter Allen in Charlestonhttps://www.blogger.com/profile/13366748628323814438noreply@blogger.comtag:blogger.com,1999:blog-5972682861284115398.post-12677418148327038212009-09-05T08:10:55.378-07:002009-09-05T08:10:55.378-07:00Peter,
Do you think organizational change is cons...Peter,<br /><br />Do you think organizational change is constrained primarily by cultural, financial, or political barriers? Is the industry just not drawing the right leaders to address the changing needs of clients?<br /><br />I am extremely interested in why you think there is strategic latency in the highly competitive managed services industry.<br /><br />JoeJoseph Greinerhttps://www.blogger.com/profile/03191852404163463483noreply@blogger.com