Comments on: The Two Secrets to Outsourcing Your CRM Functions http://www.estebankolsky.com/2009/08/05/the-two-secrets-to-outsourcing-your-crm-functions/#utm_source=feed&utm_medium=feed&utm_campaign=feed the blog! Sun, 14 Mar 2010 12:46:52 -0700 http://wordpress.org/?v=2.9.2 hourly 1 By: Esteban Kolsky http://www.estebankolsky.com/2009/08/05/the-two-secrets-to-outsourcing-your-crm-functions/comment-page-1/#comment-209 Esteban Kolsky Thu, 13 Aug 2009 20:09:51 +0000 http://ekolsky.wordpress.com/?p=289#comment-209 that is a great point Kate. hidden costs in any project are challenging, but when you are outsourcing your entire costs structure changes dramatically because you are adding at least one or more dimensions of costs to consider. of course, it is not in the benefit of the provider to mention that... for the most part they won't. then you end up with twice or three times the planned cost, no ROI, and (as the post said) worse and slower service. great point, thanks for the comment. that is a great point Kate.

hidden costs in any project are challenging, but when you are outsourcing your entire costs structure changes dramatically because you are adding at least one or more dimensions of costs to consider.

of course, it is not in the benefit of the provider to mention that… for the most part they won’t. then you end up with twice or three times the planned cost, no ROI, and (as the post said) worse and slower service.

great point, thanks for the comment.

]]> By: kate leggett http://www.estebankolsky.com/2009/08/05/the-two-secrets-to-outsourcing-your-crm-functions/comment-page-1/#comment-208 kate leggett Thu, 13 Aug 2009 19:29:03 +0000 http://ekolsky.wordpress.com/?p=289#comment-208 Remember the hidden variable in cost - its just not the outsourcers cost, its the company's cost to manage the outsourcer which can be very large at times. And I know this for managing many software development projects with outsourcers. So, if you are choosing your outsourcer based just on cost, factor in all hidden management costs before comparing vendors. Sometimes inexpensive vendors are not so inexpensive when you do the math. Remember the hidden variable in cost – its just not the outsourcers cost, its the company’s cost to manage the outsourcer which can be very large at times. And I know this for managing many software development projects with outsourcers. So, if you are choosing your outsourcer based just on cost, factor in all hidden management costs before comparing vendors. Sometimes inexpensive vendors are not so inexpensive when you do the math.

]]> By: scorpfromhell http://www.estebankolsky.com/2009/08/05/the-two-secrets-to-outsourcing-your-crm-functions/comment-page-1/#comment-207 scorpfromhell Sat, 08 Aug 2009 19:23:14 +0000 http://ekolsky.wordpress.com/?p=289#comment-207 You are right! One case study is not enough data point to state otherwise. ;) You are right! One case study is not enough data point to state otherwise. ;)

]]> By: Esteban Kolsky http://www.estebankolsky.com/2009/08/05/the-two-secrets-to-outsourcing-your-crm-functions/comment-page-1/#comment-206 Esteban Kolsky Thu, 06 Aug 2009 05:58:44 +0000 http://ekolsky.wordpress.com/?p=289#comment-206 Thanks for reading and commenting. I actually was writing this as pick two, suffer the other one and experience with several clients changed my mind. However, I am going to have to say that you are right when you say that an advanced relationship can move into getting two benefits. I agree with you there. Problem is that since most people just chose the relationship based on costs - they almost never mature to that level (am I right? Or am I right? Or am I right?). Thanks for a good comment and your experience. > Thanks for reading and commenting.

I actually was writing this as pick two, suffer the other one and experience with several clients changed my mind.

However, I am going to have to say that you are right when you say that an advanced relationship can move into getting two benefits. I agree with you there. Problem is that since most people just chose the relationship based on costs – they almost never mature to that level (am I right? Or am I right? Or am I right?).

Thanks for a good comment and your experience.

>

]]> By: scorpfromhell http://www.estebankolsky.com/2009/08/05/the-two-secrets-to-outsourcing-your-crm-functions/comment-page-1/#comment-205 scorpfromhell Thu, 06 Aug 2009 05:45:15 +0000 http://ekolsky.wordpress.com/?p=289#comment-205 Great post & a good graphic Esteban. Actually, in my experience of IT outsourcing (me representing the vendor not the business), we can expect to achieve 2 at the exclusion of the remaining 1. Faster & Better but not Cheaper. Better & Cheaper but not faster. Faster & Cheaper but not Better. But you are right that it is usually how you mention it. 1 at the exclusion of other 2. It is only when the relationship between the business & the outsourcing vendor has matured that they can aspire to achieve the state I have described. Regards, Prem :) Great post & a good graphic Esteban.

Actually, in my experience of IT outsourcing (me representing the vendor not the business), we can expect to achieve 2 at the exclusion of the remaining 1.

Faster & Better but not Cheaper.
Better & Cheaper but not faster.
Faster & Cheaper but not Better.

But you are right that it is usually how you mention it. 1 at the exclusion of other 2.
It is only when the relationship between the business & the outsourcing vendor has matured that they can aspire to achieve the state I have described.

Regards,
Prem :)

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