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Sunday, September 25, 2005

eSCM-SP: Threat or Opportunity for Outsourcing?

Who wants to help destroy value in their industry? A recent HBR article sets out a future where almost all processes are outsourced - but also largely commoditized as well. One of the key enablers of commoditization will be the growth of industry standards, which will allow buyers to mix and match more easily.

So you’d be forgiven for groaning at the emergence of eSCM-SP, the global standard designed to help buyers evaluate their service providers.

But as our latest White Paper shows, there are good reasons to think that eSCM-SP is likely to become mainstream quite quickly – it’s not difficult to see that eSCM-SP certification will become a standard RFP question within a year.

The upside is that any service provider at eSCM-SP Levels 4 and 5 is likely to be achieving what every business is striving for: reliable service delivery, relentless pressure on costs, continuing innovation and process improvement, and sound governance.

So, perversely, while taking eSCM-SP seriously may accelerate commoditization, it’s also in the interests of every service provider. Those organizations that achieve Level 5 certification are likely to be the winners in the long term.

Service providers are now working on eSCM-SP, and are using Nimbus control-ES software to achieve certification – as a by-product of a world-class process and performance management environment.