BOMs rain down on outsourcing
By The National Outsourcing Association (NOA) in Industry
Posted in BPO on
Industry chat is awash with talk of how organisations can actually measure the impact of outsourcing on their bottom line. Outsourcing is all well and good and everyone knows that it’s supposed to cut costs and improve quality. But unless the results are carefully assessed, claims like that are spurious.
The NOA has just completed a piece of research on Business Orientated Metrics, otherwise knows as BOMs. They are real measures of the business impact of outsourcing, as opposed to what we call “output orientated metrics” which measure the operational efficiency of outsourcing. Typical BOMs might include: reductions in error rates; employee satisfaction; levels of absenteeism etc.
The NOA research, which was conducted by outsourcing analyst firm, NelsonHall, found that only 18 percent of organisations use BOMs, as opposed to 70 percent that use output metrics. But the number using BOMs is due to double in the next two years, as organisations wake up to the benefits of considering outsourcing in the wider respect of the business.
Whilst in the early days of outsourcing, companies were blinded by cost savings, they seemed to lose track of how it should be measured. BOMs are the industry’s answer. It will be interesting to see how outsourcing measures up.
As industry goes green, outsourcing will benefit
By The National Outsourcing Association (NOA) in Industry
Posted in Green on
New research from Datamonitor has found that Green IT has moved to the forefront of the corporate agenda. The adoption of eco-friendly computing is fast emerging as a priority for technology decision makers and this will only rise further as the government considers implementing legislation to make going green an obligation.
Once legislation is put in place (and even in the interim period) the increase in green focus will lead to a spate of outsourcings. End users will outsource in order to gain access to more efficient datacentre technology and make the most of economies of scale not available to individual organisations (this is why companies outsource now, of course). The end user will also outsource because of the reduction in risk due to the speeding up of compliance with incoming regulations.
And with the focus on green increased, end users will look to suppliers’ green credentials when deciding who to outsource to. Suppliers are eventually going to have to meet a Green Benchmark (GB), alternatively known as a sustainability benchmark. From your GB, an end user can establish a baseline on which suppliers can improve their green performance.

