I am pleased to present the second Norton Rose Group international survey of outsourcing practice. Our 2008 report on international best practice in outsourcing and procurement – A Smart Approach to Sourcing – highlighted the differences in approach to sourcing across various industry sectors. We found that customers needed to improve three areas of their procurement processes if they wanted to achieve the maximum benefit from outsourcing:
- Management buy-in: procurement should be placed firmly at the core of corporate strategy and have proper resources allocated to it.
- Good supplier/customer relationships: if suppliers are to deliver technology and services which meet the needs of business, customers need to be far more open about their objectives with suppliers and to share information with them. Good relationships cannot be built on ignorance and misunderstanding.
- A more sophisticated approach to risk: both customers and suppliers need to take a more considered approach to identifying the risks associated with projects and a more realistic approach to the allocation of risk between supplier and customer.