Delivery
Apr 06,2008 00:00 by admin

Delivery

Accenture's work with Sainsbury's begins with a consulting premise - how best to improve business performance - and translates this into practical changes to systems and processes. While advising its client on how to achieve those improvements, it is also responsible for making them happen. Thus, while PA's role was to develop a commercial framework within which other suppliers could work, Accenture's work with Sainsbury's includes implementing new systems, exploring the use of new technology, and re-engineering the way Sainsbury's and its suppliers work collaboratively. Atos Origin, too, was responsible for the delivery of the outsourced service, working side by side with
VOSA's own staff across a wide range of operational areas.

Clearly, both firms' track record in delivery is fundamental to their success here, but it was the use to which this experience was put that makes these projects outstanding examples of this kind of work. Neither firm was satisfied with the conventional relationship between client and outsourcing supplier: both set out to create environments in which more time would be focused on achieving the client's business objectives, and less on debating the minutiae of the contract. Success in this sector of the outsourcing market will primarily stem from the supplier's attitude.

That advice and delivery are being undertaken by different firms is significant. While 10 years ago it might have been possible for a single supplier to fulfil both of these functions, to give advice and to be involved in delivering the service, most clients now see the two roles as mutually exclusive. A firm that sells delivery services cannot be expected to offer independent advice on who is best positioned to deliver a service, because it has a vested interest in the outcome. By contrast, a firm that focuses on delivery is likely to be better positioned when it comes to offering in-depth knowledge about a particular technology. Both roles have their place in the market, but clients want suppliers to be clear about their position.

However, both models illustrate the extent to which organizational boundaries are changing - and this is one of the reasons why a more open, collaborative and flexible relationship is so critical. To be effective, outsourcing advisers and suppliers have to function as though they were part of their client's organization, sharing common objectives, making decisions on their behalf, and developing a similar culture.

Ironically, the greatest measure of successful outsourcing is the extent to which a process appears to be in-sourced.