Vested outsourcing
Contents |
[edit] Introduction
Vested outsourcing is a form of business process outsourcing (BPO) in which the client and the service provider appointed to deliver non-primary business activities develop shared business models and goals. Instead of traditional arrangements where clients and third-party suppliers work in silos to achieve results for different business entities, vested outsourcing aims to create a partnership that is mutually beneficial.
[edit] History
Vested outsourcing has existed for several decades, but it formally emerged in the United States as an alternative business model in the mid- to late-2000s as a response to Lean thinking and Lean Six Sigma. Research conducted at the University of Tennessee by Kate Vitasek resulted in the development of the approach and established the five differences between conventional outsourcing and vested outsourcing:
- Concentrate on results, not tasks.
- Look at what happens and not how it happens.
- Set mutual goals and concrete results.
- Establish a fee structure that includes incentives that benefit the client and the service provider.
- Use insight instead of oversight when dealing with the relationship.
In addition to Vitasek, the development of vested outsourcing has been explored by Ken Ackerman, Jim Eckler, D. Michael Ledyard. Daniel Logan, Karl Manrodt, Art Van Bodegraven and others in the field of strategic business management.
[edit] Building a partnership
Creating a shared value proposition or solutions concept is at the core of vested outsourcing, and this separates it from standard contractual arrangements. Both parties must agree to the terms of the arrangement and decide upon a desired outcome together. The outcome should be measurable through a set of objective benchmarks such as:
Vested outsourcing can result in aligned business strategies that can build more collaborative partnerships between clients and service providers. However, as with traditional business process outsourcing, vested outsourcing can also create an over-dependence on service providers and risk the creation of data privacy breaches.
[edit] Related articles on Designing Buildings Wiki
- Benchmark
- Benchmarking as business tool
- BS EN 15221.
- Business administration.
- Business process outsourcing (BPO).
- Facilities management.
- Hard facilities management.
- Insourcing.
- Joint venture.
- Lean Six Sigma.
- Outsourcing playbook.
- Partnering.
- Relationship management in construction.
- Soft facilities management.
Featured articles and news
UK Construction Week, London is here !
Debuting major international pavilions and much more.
Getting the most out of heat pumps and heating
How heat pumps work and how they work best.
Plumbing and heating for successful retrofit and renovation
Low temperature underfloor systems and heat pumps.
Cost-of-living crisis and home improvement plans
Starting on the right footing and top tips for projects.
Delays on construction projects
Types, mitigation and the acceleration of works.
From Chaucer to Fawlty Towers.
Electrotechnical excellence, now open for entries.
Net zero electricity grids BSRIA guide NZG 5/2024
Outlining the changes needed to transition to net zero.
CIOB Global Student Challenge 2024
Universitas Indonesia wins for second year running.
New project and cultural district described in detail.
The nature of EPCs, crticism and inaccuracies.
History, issues and redesign.
From waste recycling to energy performance the hierchy.
ECA 2024 Apprentice of the Year Award
Entries open for submission until May 31.
UK gov apprenticeship funding from April 2024
Brief summary the policy paper updated in March.