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Golden rules of outsourcing

A.Yong | Feb. 28, 2011
Moving up the outsourcing learning curve.

Ultimately, successful outsourcing boils down to providing good service. “Service is not what we do, not what we provide, but what the customer experiences. And what the customer wants is reliability, accuracy and dependability.”

It's All About Partnership

Poised to provide such good service is SingTel, Asia’s leading communications group, with over 25 years’ experience in serving large organisations and government agencies in the region. SingTel’s IT and Managed services team brings to the table a formidable combination skilled personnel, extensive infrastructure, and industry best practices.

Bill Chang, Executive Vice President at SingTel, concurred with Willcocks, that outsourcing is about a partnership, in his presentation on “Outsourcing for High Performance”.

“It is a commonly held myth that outsourcing is about transferring pain points to another party. The reality is that outsourcing is a partnership with the objectives to not only lower costs, but also to enhance business performance and deliver specific business outcomes,” said Chang.

He noted that the trend of IT outsourcing can be traced back to the 80’s when large-scale outsourcing deals saw organisations outsource data centres and desktops in an attempt to cut operational costs and focus on

core competencies.

With outsourcing now in the third generation of contracts, there has been a shift away from the traditional focus on cost reduction, measurement by performance results and KPIs, and the relationship being a client versus vendor one. The contracts were also more rigid and of longer duration.

In contrast, the third-generation approach to IT outsourcing has organisations seeking both cost reduction and value creation, while the goal is business transformation through innovation, and the relationship has the risk shared by client and provider. The lengths of the contracts are also of shorter duration, with flexible terms and the option to renegotiate at the key project milestones, noted Chang.

“It is all about value creation at the end of the day, how to help clients to differentiate themselves,” said Chang.

Today, SingTel has moved beyond its telecommunications connectivity roots, having emerged as a multi-award winning ICT service provider in the Asia Pacific region.

With the outsourcing market being transformed as delivery models and customer demands change, SingTel has continuously innovated and expanded its ICT managed services portfolio, to provide Enterprise Wide Outsourcing (EWO). Through EWO, SingTel provides the support and expertise to manage the infrastructure and operations of a customer’s information system based on service level agreements.

EWO includes the following comprehensive services offerings (as seen in Table 1). These services are delivered consistently and efficiently, guided by standards-based methodologies and a common governance of framework.

 

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