We talked with Mr. Dr. Dietz, from aproxito and former Siemens Manager about Market Development in Germany, IT Purchasing, Sourcing Strategies, Readiness of Internal Organization, Risk Evaluation, and Marketing for Service Providers.

Dr. Dietz, you know the perspective of all three sides – the buyer side from a large German concern, Siemens, the consulting side as well as the service provider side. Further you have been responsible for many different areas in IT, such as process management, quality management and strategic purchasing and so on.

Could you please give as your combined perspectives on the development of the market for outsourced services in Germany over the last couple of years?

At the beginning please let me thank you for giving me the opportunity to share some personal views based on my observations and learnings of the past more than fifteen years in the outsourcing and global shoring business.

Before I get into the details to answer your question, please let me remark that there are lots of different definitions of the term outsourcing which sometimes causes confusion. On one side there is “outsourcing” meaning the transfer of assets and own staff of the customer to an external provider, hence including “Transfer of an Undertaking”, in German “Betriebsübergang”. Obviously the staff can legally not be transferred to another country and hence this kind of outsourcing deal needs to be with a local service provider. On the opposite side there is something often called “Offshore Outsourcing” or “Offshore Outtasking” which basically means sourcing services from Offshore, which as per the wording includes as well nearshore and farshore, and is usually called offshoring. I personally like to call this model “Global Shoring” in order to differentiate from Global Sourcing of material goods on one side and from outplacing of own staff on the other side, and keeping in mind that there is – with few exceptions – no general reason to differentiate between nearshore and farshore.

At the end, the sourcing strategy depends on finding the right strategic decision regarding the location of the source which may be in onshore, nearshore or farshore. In the following I would like to focus on the global shoring perspective. …

 

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