"They have to change the incentive structure for sales staff, and think about whether it cannibalises a service they already provide."
JONATHAN COOPER-BAGNALL, SHARED SERVICES CONSULTING, PA CONSULTING GROUPFinancial TimesJane Bird7 December 2011
PA Consulting Group is quoted in the Financial Times The Connected Business special report. PA gives its view on the attraction of outsourcing and how customers can get better value for money from their provider.
PA points out that customers can often get better value by focusing on how the outsourcing provider can make them more competitive or help to bring out products faster: “That might mean switching some services off or scaling them back, or shifting the speed of transition from legacy infrastructure to new customer-focused applications.” Jonathan also says that they could also request fewer estimates for new applications, which are expensive.
PA also comments that, for outsourcing providers, moving away from guaranteed returns and minimum commitments is a big step: “It fundamentally changes the way they can sell, because it’s not about length of contract. They have to change the incentive structure for sales staff, and think about whether it cannibalises a service they already provide.”
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