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Outsourcing Election 2008 Article

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Concerns About SLA And Value Leakage In Outsourcing

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All businesses are currently attempting to maximize their strategic growth while trying to lower costs and achieve greater efficiency. Managements from the most forward thinking and cutting-edge businesses now consider opting-out their HR operations to third parties. This has been done for a long time now with the Department of Work and Pensions in the UK whose website, The Government Gateway, is administered by Atos Origin, an international IT company. Similarly, Capita Total Solutions provides a storage solutions programme for the DWP and another facet in Capita provides their HR solutions.

Specialised organisations such as Capita are able to focus on the role of specialised HR within an industry which itself is specialised, requiring a certain entry level for staff and ongoing training throughout their careers in order to reach key performance indicators in accordance with compliance targets. A third party taking over this particular function releases the main company to focus on its prime concern, reducing overheads and staffing costs while maintaining an adequate level of service. In order to provide legitimacy to the new outsourcing industry, Business Process Outsourcing sets off on a journey of transformation resulting in a tribunal business model popularised by the Ulrich Model of Business, thereby creating an ‘infusion’. So, if HR infusion fails and outsourcing is not all it’s cracked up to be, the whole BPO is re-transformed and ‘insourced’ back to the main business from where it originated.

Then, of course, we have the acronyms: the KPI’s and the SLA’s, or Key Performance Indicators and the Service Level Agreement respectively, whereby levels of service are appraised. Naturally, if, after a successful evaluation, the third-party delivers, further work will get ‘smart-sourced’ unless, of course, the ‘lift and shift’ fails, in which case the management would prefer to be kept in the loop in case of ‘value leakage’.

Basically, what seems to be happening is that large businesses are contracting out various services such as HR divisions in order to save money. The outsourcing companies quote them a price for the job which is then written into the contract and, to ensure the outsourcing companies deliver, they have to submit to a mutually agreed compliance procedure which is where the Key Performance Indicators come in. Naturally, if the outsourcing companies fail to provide a service in accordance with their contract, the management needs to know about it as soon as they can to minimise any further problems and the outsourced work needs to be returned to the main company and slotted back in somewhere.



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Outsourcing Election 2008 Specific links

Outsourcing Election 2008 News

Obama campaign targeting Romney's record as governor - Reuters


Obama campaign targeting Romney's record as governor
Reuters
By Jeff Mason and Laura MacInnis | CHICAGO/DES MOINES, Iowa (Reuters) - After weeks of painting Republican presidential contender Mitt Romney as a job-slashing corporate raider, President Barack Obama and his re-election campaign are broadening their ...

and more »

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Negative Ads Dominate 2012 Election, Study Shows - Huffington Post


Negative Ads Dominate 2012 Election, Study Shows
Huffington Post
Whereas in 2008, candidate-sponsored ads made up 96.6 percent of total "airings," as of April 22, 2012, that percentage had dropped to 35.8 percent. Campaigns, in short, are outsourcing their airwave operations to allied groups, who in turn are going ...

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HP Beats Expectations; Cuts Underperforming Acquisitions - Forbes


Forbes

HP Beats Expectations; Cuts Underperforming Acquisitions
Forbes
The unit includes former outsourcing giant, EDS, which HP bought in 2008 for $13.5 billion. After successive headcount reductions, the unit is a target for the brunt of the newly announced layoffs. With 140000 people in 2008, it operates as a ...

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Obama Formally Kicks Off Campaign in Ohio and Virginia - New York Times


New York Times

Obama Formally Kicks Off Campaign in Ohio and Virginia
New York Times
COLUMBUS, Ohio — President Obama sought to rekindle the passion of his 2008 victory on Saturday with a pair of huge rallies in battleground states that signaled a new, more politically aggressive phase of the campaign and a sharpened critique of Mitt ...
Obama campaign attacks Romney over outsourcingMarketWatch (blog)
Obama: Focus On The Next 4 Years, Not The Last OnesNPR
Obama kicks off campaign in OhioUSA TODAY
CNN (blog) -Huffington Post
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Obama campaign targets Romney's record as governor - CNN (blog)


Globe and Mail

Obama campaign targets Romney's record as governor
CNN (blog)
Officials with the Obama re-election campaign say they'll keep making the argument that Romney made his millions in the private sector by outsourcing jobs, bankrupting companies and laying off workers, and that he was no better as an elected official ...
Recommended: First Thoughts: Obama unloads on Romneymsnbc.com

all 4,062 news articles »

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