According to a survey conducted by EquaTerra’s Advisor and BPO/ITO Service Provider Pulse 2Q08, organizations are increasingly building and utilizing complex services supply chains to lower costs and address the emerging opportunities and perceived threats of globalization. Most organizations are yet to do a good job of arranging relationships with services providers. EquaTerra finds that buyers’ overall skills at developing quality outsourcing business cases are mediocre, particularly when it comes to assessing total costs to achieve desired improvements from outsourcing and attendant indirect or shadow costs. 2Q08 Pulse respondents rate buyers as poor to mediocre across a variety of governance activities, including their ability to measure service level agreements (SLAs) and end-user satisfaction. While these problems are not new, they are exacerbated as organizations do more global sourcing.
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