Archive for the ‘Transparency in Outsourcing’ Category

Willful Misconduct or Lack of Information?

The other day, we were introduced to a new Enterprise IT prospect.  In our first meeting, they were very upset at their outsourcing service provider, accusing them of willful misconduct. As it turns out, the potential customer was exposed to risk due to a lack of operational coverage – systems that weren’t backed up, no anti-virus on certain machines, etc.  Their compliance requirements mandated that these things happen, and they discovered they hadn’t been happening.

Willful Misconduct? Unlikely.

In our experience, we have never witnessed willful misconduct on the part of a service provider.  In fact, outsourcing service providers usually want to do a good job and have a positive relationship with their client, just as much as the client does.  It’s just good business.  In almost all cases, there is no intentional misrepresentation of information.

The Need For Visibility

We have however seen a lack of visibility and trusted information lead to the kinds of operational risks that this prospect had discussed. For example, using the anti-virus product to report on anti-virus coverage is a common practice that is not accurate. If the anti-virus agent is not installed on a machine, the system doesn’t know it exists, so it doesn’t know that there is no coverage. 

To avoid these issues, both sides of the outsourcing relationship need the kind of accurate and trusted data that is provided by the Blazent Golden Record.

Getting Outsourcing Relationships Back on Track

In the vast majority of outsourcing relationships, both sides are honest. Both sides just want to do business. It’s the tedious outsourcing governance tasks that get in the way and create a lack of transparency, which results in mistrust. Using Blazent helps both sides avoid these issues, focus on their business goals rather than on outsourcing management, and as a result, enables outsourcing relationships to flourish.

Transparency in Outsourcing Relationships

Not surprisingly, the current economic downturn has had a huge impact on businesses worldwide. One of the results of the economic slump is increasing demand by enterprises for increased transparency in their relationships with their outsourcing service providers.

Enterprises have always been worried that they might be spending on outsourcing services they don’t actually get, but now more than ever, with shrinking IT budgets and the need to stretch their IT dollars to the maximum, organizations are demanding full transparency from their service providers.

The fact that most outsourcing clients still use manual processes to attempt outsourcing governance is not very helpful of course, and means that organizations are often unable to figure out if they’re getting the required capabilities from their outsourcing service providers.

The unfortunate result is that the relationship between the service provider and the client is often strained, and characterized by frequent disputes around billing. It’s not that there’s a “good” side and a “bad” side in outsourcing relationships, or that the service provider is deliberately trying to overcharge. But often, and especially in complex IT outsourcing relationships, the service provider itself does not really know how many assets it is managing and whether those assets are compliant.

But outsourcing relationships don’t have to be strained. The data needed for outsourcing governance is there. The problem is, it’s not readily accessible, especially if you try to access it manually. This is where Blazent helps, with tools and technology that can take the raw data and transform it into reliable, usable information.

Blazent aggregates, cleanses, and reconciles multiple sources of IT and financial data to deliver a single, reliable, and trustworthy inventory of IT assets, helping both sides to the outsourcing relationship to reach their mutual goal of increased transparency.

The result is not just business efficiency, with the client getting exactly what they paid for and the service provider getting compensated for the work performed, but also a much smoother outsourcing relationship, freeing both sides to focus on business goals rather than on manually managing their outsourcing relationship.