Outsourcing Journal interviewed Mr. Albrecht, IT and Sourcing Consulting Expert, Germany on Project Management, Provider Selection, Decision Hurdles and Business Relationships
Mr. Albrecht, during your roles in leading consulting companies, like e&Co AG, Gartner and now your own company OrgSource you have accompanied many companies in their endeavors to implement changes in various areas. Can you share some of your experience regarding the role of outsourcing in corporate change initiatives and the development of the market over the last couple of years in Germany?
Outsourcing appears to have arrived in the middle of major business initiatives. Whilst some organization do now benefit from their learnings from 1st and 2nd generation contracts, others start initiatives to generate value from next generation offerings, like as-a-service or cloud offerings and near- and offshore sourcing of manpower intensive services.
The market has seen new providers entering with new offerings, whilst the traditional outsourcing market is further consolidating to generate the required economies of scale.
Within the IT departments the love to outsourcing initiatives is not too intensive, since the risk of job-loss becomes present. This continuously leads to internal initiatives, which definitively meet business requirements for the sake of very high levels of customization. So, the hurdle for providers to increase their position remains high.
If a German buyer organization is looking into implementing or optimizing sourcing strategies, specifically the co-operations with external service providers, what are the core areas to focus on and where do you see the best opportunities in terms of cost saving and acquisition of additional skills?
The question requires a differentiated answer. The best cost-saving opportunities start with a more rigid requirements management, typically ways before sourcing is considered an alternative. Here, rigid requirements does not mean to disrespect business needs. It simply means to stay tuned.