Benchmarking is an established tool for managing outsourcing relationships, traditionally applied to validate and/or improve the value of a contract. Increasingly, benchmarking analyses are becoming integral to the overall sourcing and operational strategies of top-performing organizations. Cost reduction remains a priority, and while many organizations have achieved world-class levels, effective benchmarks continue to identify opportunities even in the tightest-run ships. Benchmark analyses are also proving to be critical to managing broader transformational changes in the way IT services are procured and delivered; specifically, through programs based on demand management and implementation of standard service delivery models.
This ISG white paper discusses how benchmarking analyses of outsourcing contracts can help client organizations and service providers improve performance and develop more effective relationships. Specific points discussed include:
1. How benchmarking fits into a portfolio of contract management tools
2. Factors that cause benchmarks to fall short of expectations
3. Key characteristics of effective benchmarks
4. Emerging opportunities to use benchmarks in transformational initiatives
Do you have a question, comment or suggestion?
