Pervasive Outsourcing™ Rebranded, Reflecting Outsourcing's Accelerating Use by Market Leaders

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Pervasive Outsourcing™ announces rebranding campaign, responding to outsourcing's accelerating penetration as a strategic practice by the world's most innovative companies.

Pervasive Outsourcing™, a breakthrough approach to enterprise agility, has been rebranded as Transourcing™ due to the rapid growth of outsourcing as a strategic business practice by global enterprises. Christopher Rollyson, who created and launched the offering in stealth mode in March 2006, responded to the fact that outsourcing was becoming pervasive much more quickly than initial studies had anticipated.

"The Pervasive Outsourcing name denoted a stage of adoption at which outsourcing would become pervasive—so common that it would cease to exist as a distinct business activity. For market leaders, that point is approaching much more rapidly than we thought it would. The rebranding will keep Transourcing™ aligned with its market position at the leading edge of business and operations strategy."

Rollyson cited several trends that indicated outsourcing's acceptance as an emerging strategic practice. It has been used very successfully to enhance the time to value for mergers and acquisitions. The inability to integrate IT has scuttled the value of many mergers; now, the IT of both partners can be ITOed to an outsourcing partner who will inject structure and discipline into the process. Moreover, the partner can transfer the IT operation back to the client once the combined organization has stabilized. Already, merger partners' outsourcing track records are starting to be priced into mergers and acquisitions deals.

Outsourcing deals have become increasingly sophisticated in 2006, often combining ITO (IT outsourcing), BPO (business process outsourcing) and professional services that directly impact the buyer's financial performance. For instance, many providers are specializing in niches such as revenue enhancement for hospitals in which they will operate the entire accounts receivable and collections process and share risk and reward with their clients. These developments give organizations many more options in how to execute their operations.

"Transourcing™ denotes the real-time networked organization and the shift to the Knowledge Economy," Rollyson added. "Commercial and government organizations are under extreme pressure from their customers and constituents to introduce new products and services that enhance experience. Rapidly configurable networks are far more responsive than the hard-coded, inflexible enterprises that were built to deliver economies of scale during the Industrial Economy. In the Knowledge Economy, innovation, novelty and responsiveness will produce the most value."

Transourcing™ was designed as a pragmatic way for organizations to transition from the Industrial Economy, in which value was largely encapsulated in products and driven by economies of scale, to the Knowledge Economy, where knowledge-derived innovation produces most of the differentiation and value. Transourcing™ features a two-fold value proposition: tactically, it develops enterprise-wide strategic outsourcing competencies that maximize the ROI on existing outsourcing initiatives in the short-term. Strategically, it reuses strategic outsourcing competencies to build organizations' ability to connect and disconnect with partners to execute rapid-cycle innovation initiatives.

"Transourcing also means 'beyond sourcing to innovation.' The time has come for market leaders to recognize that competency in outsourcing is strategic: collaboration is the future of the enterprise that drives value through innovation, and enterprises can develop their ability to collaborate while outsourcing to drive efficiency and performance," Rollyson stated. "Orchestrating the talents of diverse networks of innovation partners will be vital to thrive in the Knowledge Economy."

Transourcing™ is comprised of several tools that practitioners use to advise enterprises to deliver on its two-fold value proposition: the Transourcing Enterprise Roadmap™, the Transourcing Diagnostic™, the Transourcing Transformation Framework™ and the Transourcing Adoption Curve™.

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Christopher Rollyson




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