NEWS Companies using Agile principles for outsourcing strategy Outsourcing selection processes can be a particularly tough job for any business, given the often lengthy process that it entails.
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Clients issue RFPs which are highly detailed, covering everything from service descriptions to performance indicators to penalty structures. Choosing the right organisation comes down to those who you believe can deliver on their agenda.
Once a relationship has been established between the contracting company and the supplier, a multi-year relationship develops.
The issue arises when the results delivered are not what was p romised. It is for this reason that a handful of companies have begun using agile principles in their selection process. Agile is a software development method derived from Scrum in the s.
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It emphasises a far more adaptive approach to the development process. Its principles can be applied to any field provided it consists of project-based teamwork. The Agile Manifesto details some of its core tenets, including adaptive change management, cross-disciplinary teams, interaction over processes, objective-based work, working services over documentation and record-keeping, and a flexible attitude as the default.
Agile was developed in acceptance of the changeable nature of IT software development more generally.
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Applied to the outsourcing process, a European telecommunications company used agile for its negotiation methodology. Rather than reading through thousands of pages of documentation trying to find the perfect partner, they contacted the individuals directly and had more direct discussions about what they could bring to the table.
Discussion groups were formed from multiple disciplines including finance, HR, IT and other areas. An insurance company did something similar, inviting all of the potential candidates to a makeshift speed dating sessions, narrowing down the choices quickly and in a low-pressure environment.
Issues that affected the business could then be addressed more directly.
The use of Agile is applicable in cases where quality of service is somewhat lacking and core issues affecting a process need re-assessment. This is often the case with complex IT solutions.
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To effectively use Agile, companies need to form multi-disciplinary teams, ensure proper alignment between teams, make decisions more efficiently and document any planning points agreed upon. If all of these are put into practice, then the Agile approach can bring lasting benefits to the outsourcing process.
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