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August 2007

Online Version of This Newsletter

Welcome
 
Process Improvement before or after Outsourcing? If yes, how would you do it? This issue has a few articles that address these questions. Process Improvement is fast becoming one of the major value-adds in an outsourcing/off-shoring context. With costs rising, and intense competition, many BPOs are using Process Improvement as a key service differentiator. Six Sigma and Lean are some of the techniques that deliver this promise and there are a number of articles and case studies in this issue that show how it is done. 

Knowledge Process Outsourcing (KPO) is fast becoming a very lucrative area for BPOs that set up a KPO division or KPO-only companies. They provide services like Market Research. Analytics, and Legal Process Outsourcing. A number of articles analyze Market and Pricing Trends in this fast growing area.

Your suggestions for other topics, articles and news to be covered are always welcome. Please send them to newsletter@ajira.com. Please forward this to others in your organization and elsewhere, if you feel this newsletter may be of interest. We value your privacy and for any reason if you wish to unsubscribe, the instructions are at the end of this newsletter.

Thanks for your time and attention,

Anil Rewari
President
Ajira Technologies, Inc.

www.ajira.com

____________________________________________________________________________________


Business Process Management Articles


The Process Advisor's Role

Daniel J. Madison,Value Creation Partners, BPM Institute Website and Newsletter, June 25, 2007.
In most organizations no one oversees the performance and improvement of cross-departmental processes. Management books often assign the title "process owner" to this role. However, "owner" implies authority, which is usually missing in organizations that include this position. "Process advisor" or "process consultant" are more accurate, in that they reflect this reality. Usually, authority pertains to resources, staffing, and prioritizing projects.

Key Success Factors for a Performance Dashboard
Tom Kawamato, Bob Mathers, Compass Management Consultants, BIReview Newsletter and Website, July 26, 2007.
Performance dashboards are a commonly used management tool to gauge performance and progress toward business goals. Dashboards can be designed and developed to address a wide range of objectives, from monitoring the viability of a global organization's business strategy, to keeping a check on a department's ability to achieve service-level targets. Despite their ubiquitous presence in business, dashboards can be difficult to design and implement, and often fail to achieve their objectives. Common problems include misalignment of dashboards with business goals, unrealistic or poorly defined objectives and organizational issues affecting design and implementation.

The Conflict Between Six Sigma and Innovation
John Parkinson, CIO Insight Newsletter and Website, July 23, 2007.
When devout adherents use the process improvement method as a be-all, it ceases to be a valuable tool and turns into a religion.

Making Agility an Ability
Allen E. Alter
, CIO Insight Website and Newsletter, July 24,  2007.
Organizational and technological ability is a top priority for CIOs. Leaders from the Advanced Practices Council of the Society for Information Management weigh in on the discussion.

ABC: An Introduction to Balanced Scorecard
Karen D. Schwartz, CIO Magazine Website and Newsletter, July 13,  2007.
Most organizations can benefit from a balanced scorecard approach, which can raise the profile of key projects, increase functionality, and predict future performance—and it often leads to greater financial return.

Understanding Distributions for Six Sigma
J.DeLayne Stroud, DeLeeuw Associates, iSixSigma Financial Website and Newsletter, July 25, 2007.
In order to not only look at data, but also interpret it, consultants need to understand distributions. This article discusses how to understand different types of statistical distributions, understand the uses of different distributions, and make assumptions given a known distribution.

Consider Kaizen and the Art of Motorcycle Maintenance
Pete Kastner, Volt Workforce Solutions, iSixSigma Website and Newsletter, July 23, 2007.
iSix Sigma, when properly used and maintained, is the vehicle of choice - the motorcycle. Lean and fast, blazing along the highway of product cycles and deficiency, a set of tools strapped under the seat as one breezes from root cause to root cause. A recent Six Sigma trip was a cross-country journey across the end-to-end recruitment process outsourcing (RPO) process for a Fortune 100 company. During the weeks on this winding RPO road, the project team crossed through a number small process towns, found itself stranded between hypothesis and solution and enjoyed some truly incredible vistas that come only at dawn as one looks out from the top of a mountain of data.

Business Process Decisions Require Executive Involvement, Not Just Support
James Champy, Perot Systems Corporation, SearchCIO.com Newsletter and Website, July 17, 2007.
Business process success depends on much more than just technology. In his latest column, James Champy explains why CIOs need to ensure executives are actively involved when it comes to business process decisions.

 


Business Process Outsourcing Articles



Offshoring: Improved Processes Now More of a Draw Than Cost Savings
Shamus McGillicuddy, SearchCIO Newsletter and Website, July 5, 2007.
At the CTO Leadership Forum held recently in New York, CIT Group CIO Michael Baresich said wage savings is less of a driver in off-shoring than it used to be. Maturing markets are offering CIOs other opportunities

When to Fix a Broken Process: Before or After Outsourcing?
Bart Perkins, Computerworld Magazine Newsletter and Website, July 23, 2007.
Fixing a broken process is often difficult, expensive and thankless. IT executives are divided on whether to outsource a broken process (e.g., payroll, help desk, accounting) or fix it in-house first. Some feel that outsourcers specialize in specific processes and therefore prefer to let the outsourcer fix what’s broken. Others claim that after a broken process is outsourced, it often remains broken.  This view advocates fixing processes before outsourcing. There are good arguments on both sides.


Brazil Sambas Onto Offshore Outsourcing

Stephanie Overby, CIO Magazine Newsletter and Website, July 3, 2007.
Offshore outsourcing managers used to traveling back and forth to Bangalore may be trading in those frequent flier miles for tickets to São Paulo or Rio. And not for any much-needed R&R.

India Rates Best, Worst in Management Study
Carol Pinchefsky, eWeek Careers Newsletter and Website, July 13, 2007.
Companies in India display some of the best and the worst management practices, according to a joint report from strategic consultants McKinsey and Co. and the London School of Economics.

Outsourcing to India: Smaller Firms Good Bet
Linda Tucci, SearchCIO Newsletter and Website, July 26, 2007.
As the top-tier Indian outsourcing companies continue their march to maturity, smaller clients should consider -- with all due care -- mid-tier providers, Forrester Research says.

Off-Shoring Stars in Financial Services Ramp Up, Clean Up
Linda Tucci, SearchCIO.com Newsletter and Website, July 11, 2007.
The Deloitte & Touche 2007 off-shoring report finds a gulf between the "best and the rest." Size of operations matters. So does quality.

 



Notable News


Offshoring Legal Service to India: Growing at a Rapid Pace!
ValueNotes Database Newsletter and Website, July 02, 2007.
The Indian legal services outsourcing space has changed remarkably since the publication of our report "Offshoring Legal Services to India" in 2005. Newer services have been added to the offshored list, many new vendors have emerged and the existing vendors have developed greater capabilities.

KPO : The Truth Behind High Billing Rates
ValueNotes Database Newsletter and Website, July 6, 2007.
The recent emergence of KPO with the promise of "higher-value" work has helped attract the interest of a horde of vendors, of varying size and shape. Driven by knowledge rather than process-oriented skills, numerous independent KPOs have emerged. The key driver for KPO has been the oft touted - 'high billing rates'. Here's a look at the approximate billing rate ranges within some KPO segments and BPOs:

Click and Save with Our Interactive Global Outsourcing Map
Michael Goldberg, Stephanie Overby, CIO Magazine Newsletter and Website, July 16, 2007.
Explore our interactive map to get insights into what's happening in offshore outsourcing markets around the world.

Tips and Suggestions for Six Sigma Project Success
Simon Bodie, Citibank, iSixSigma Finance Newsletter and Website, July 11,  2007.
A government agency used Lean Six Sigma to streamline a cumbersome reimbursement process for new hire relocation expenses. The changes eliminate the reimbursement bureaucracy for new hires and save the company $185,000 a year.

Work-Out as a Problem-Solving Tool for Healthcare
Susan McGann,Mark Van Kooy, Jane Alyse Van Ohlen, Matt Zuino, Virtua Health, iSixSigma Health Newsletter and Website, July 18,  2007.
Many problems in healthcare involve processes that require analysis and improvement, but do not require detailed statistical study. Work-Out offers a one-day to two-day concentrated problem-solving effort. At a time when healthcare organizations are challenged to find new ways to improve processes and engage employees, Work-Out is an important tool set that should be added to their problem-solving methodologies.

Offshoring 2.0: The Post-India Market
Deborah Perelman, eWeek Newsletter and Website, July 05,  2007.
What will be the next big off-shoring frontier? While the experts don't all have the same locations in mind, they all agree that it will no longer be in India.
 

Insurance Call Centers Lag Behind Other Industries, But The Hartford Is a Diamond in the Rough
Nathan Conz, Insurance & Technology, July 08, 2007.
The Hartford sets call center best practices for the insurance industry, which performed poorly overall in a recent customer satisfaction study by CFI Group.


Six Sigma and Work-Out Reduce Ambulance Diversions
Dave Ingraham, John Kalb,  iSixSigma Healthcare Newsletter and Website, July 18, 2007.
At Providence Alaska Medical Center, change management tools and support from a new emergency department manager helped a Six Sigma team address the hospital's diversion problem and achieve widespread benefits. The results of the initiative led to the implementation of a series of policy and process changes. The hospital also developed a web-based inpatient capacity tool to assist with patient throughput.
 

 


Related Blog

Lean Six Sigma and Continuous Process Improvement in Outsourcing

Nari Kannan, Ajira Technologies, Inc. Sourcingmag.com

Some Recent Entries:
Business Processes Require ITES Provider Involvement not just Transitions As-Is
Process Management Cursed by Functional Approaches
Troubles with Process Measurement Begins With IT
 



Book Reviews

Show Me The Numbers: Designing Tables and Graphs to Enlighten Visualization Stephen Few, Analytics Press, 2004. Reader Reviews in Amazon.com.

Information Visualization : Perception for Design Colin Ware, Morgan Kaufmann, 2004. Reader Reviews in Amazon.com.

The Offshore Nation: Strategies For Success in Global Outsourcing and Off-shoring Atul Vashistha, Avinash Vashistha,  McGraw Hill, 2006. Reader Reviews in Amazon.com.

Multisourcing: Moving Beyond Outsourcing To Achieve Growth and Agility
Linda Cohen, Harvard Business School Press. 2005.
Reader Reviews in Amazon.com.

 


Notable Events
 

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