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CIO Executive Programs
The Leader in Face-to-Face Education for Senior Executives

Offering regional and national programs, CIO (and CSO) events bring together some of the most respected names and thought leaders in information technology and security. Presented by CIOs and other senior level executives, these invitation-only programs offer timely topics and strong networking. Learn More »

 
CIO Executive Council
A Peer-Advisory Service and Professional Association for CIOs

Public Council Teleconference: Application Rationalization — Hidden Costs and Smart Decisions

November 17 at 11:00 am US/Eastern (GMT-5)

Join Honorio Padrón, of The Hackett Group, who will share the drivers for companies to tackle application rationalization and the results of research that define the hidden cost of complexity. Additionally, we will discuss key decision milestones—to start or not, holding the course steady and fulfilling expectations.

Virtual Desktop Cost-Benefit Analysis — Michael Jacobs, Catlin Group

The analysis contained in this presentation measures the cost of everything from the machines and licenses to the infrastructure for virtual vs. traditional desktop environments.

Honor your best senior team members - Apply for the CIO Ones to Watch Award

Get well-earned public recognition for your top up-and-coming team members, your IT organization and your enterprise. Award winners will be announced, publicized and feted in May 2010, great timing to help attract new IT recruits to your company.

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RESOURCE CENTER
 
 
 
 

Guide to a Perfect Offshore Outsourcing Vendor Deal: The "Do" List

Nine tips for striking a great outsourcing deal with your vendor. For example, did you know you should negotiate key personnel provisions to give you more control over your labor assets?

 

April 30, 2009CIO

Beleaguered companies are seeking new targets to reduce costs, everything from legal and HR services to business processes and R&D are headed the way of the contact center—overseas. "Many C-level executives are in deal fever mode," says Dane Anderson, vice president of IT Services and Sourcing Technology & Service Provider Research at Gartner. "They feel they have to do something so it's Ready-Fire-Aim all the way."

Aiming after the shot usually means missing the target altogether. But failing to define the target has equally disastrous effects.

"You have to look at the 'who, what, why, when, where, how' and drill down from there," says Anderson. "Don't say 'we need to cut costs' think instead 'we need to cut costs by 15 percent in the next three months,' or whatever the case may be, because specific targets will lead you to the specific actions you need to take."

Defining Cheap

"In the current economic environment, companies are increasingly being driven by commercial considerations as opposed to technical factors," says Anupam Govil, chairman of the Global Sourcing Forum + Expo, a large trade show and forum focusing exclusively on outsourcing. "Hence the definition of a good deal has changed over the last 12 months to imply one that provides more value at lower prices."

However, driving the vendor to rock-bottom prices does not a good deal make. If your deal does not sufficiently profit the vendor, the vendor may extract profits in ways that are not in your best interest.

"It is a business reality that vendors that operate on very low margins, and thereby offer the lowest bids, often cut corners in areas that eventually effect quality, scalability and reliability," explains Govil. "A successful outsourcing agreement has to create win-win solutions for both the buyer and vendor."

A good deal then begins by defining cheap as not the lowest cost, but the best bargain for the desired results.

"Companies that are evaluating the concept of business process outsourcing should strategically define the objective to go beyond the 'cost saving' model," advises Anthony Rossabi, vice president of Carrier Services, North America for Tata Communications. "The organizations should take this opportunity to create a cost effective platform which enables them to transform existing business and launch new services. The key to success will be to leverage vendor technical and process skills, productivity improvement by measuring service levels, redefining the processes, automation and effective governance."

Defining a Good Outsourcing Deal Overall

While end-goals differ from company to company and from deal to deal, there are some general guidelines to follow to ensure you are achieving best advantage in outsourcing negotiations. According to Steve Martin, a partner at outsourcing advisory firm Pace Harmon, these are the top elements to look for:

 
 
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WHITE PAPERS

Next Generation Remote Infrastructure Management

Read this paper to see how Genpact helps extract value from RIM engagements through its RIMnexgenSM approach.
 

Upgrading to VMware vSphere with vWire

Learn how vWire can help ensure the success of your upgrade from ESX 3.x to vSphere.
 

Explore the Common Barriers to Virtualization

Discover best practices around furthering virtualization in a secure and compliant environment.
 

Practical Approaches for Securing Web Applications

Enterprises understand the importance of securing web applications to protect critical corporate and customer data. What many don't understand, is how to implement a robust process for integrating security and risk management throughout the web application software development lifecycle.
 

An Executive's Guide to Web Application Security

Since so many Web sites contain vulnerabilities, hackers can leverage a relatively simple exploit to gain access to a wealth of sensitive information, such as credit card data, social security numbers and health records. It's more important than ever to examine your Web application security, assess your vulnerability and take action to protect your business.
 

Web Application Vulnerabilities

Security managers may work for midsize or large organizations; they may operate from anywhere on the globe. But inevitably, they share a common goal: to better manage the risks associated with their business infrastructure. Increasingly, Web application security plays a significant role in achieving that goal.
 

WEBCASTS

Smart techniques for application security: whitebox + blackbox security testing.

Whitebox & blackbox application security testing are two approaches for detecting vulnerabilities in Web-based and ...
 

Lower the Cost and Complexity of a Mobile Workforce through Automation

Lower the Cost and Complexity of a Mobile Workforce
 

Extending Client Refresh - 11 Steps to Maximize Savings

11 Steps to Maximize Savings
 

Consolidate Your Servers and Storage to Lower Costs with Oracle Database 11g

Live Webcast
Tuesday, December 8, 2009
2:00pm ET/ 11:00am PT

Oracle Database 11g and Oracle Real A...
 

The Last Software You'll Ever Buy? The Platform Approach to Development

Torn between "buy" and "build"? There is a third option that can give you the custom fit of an in-house build and t...
 

Profit from Power Savings

Cut Costs & Green Your IT Operations with PC Power Management

Find out how and why 400 organizations have d...
 

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