By Andy McCue, 12 October 2005 11:55
NEWS Two UK universities are in talks with an IT industry body about launching a new specialist MBA course in outsourcing from next year in an attempt to reduce the risk of failed contracts.
The course has been proposed by the National Outsourcing Association (NOA), which claims current MBA and project management qualifications don't equip executives to deal with increasingly complex outsourcing arrangements.
Martyn Hart, NOA chairman, said businesses are struggling to manage portfolios that include a range of best of breed outsourcing service providers and often an offshore element as well.
He told silicon.com: "There's another skill in managing outsourcing contracts. It's not just project management."
The NOA is hoping the as yet unnamed universities will be able to offer an accredited outsourcing MBA from next October, using a combination of existing MBA modules and ones developed with the NOA.
Hart said: "It might help to reduce the risk of outsourcing failure and that's good for UK Plc."
Figures provided to silicon.com earlier this year showed two out of three outsourcing deals fail because organisations are only paying lip service to the contractual details in the rush to make cost savings.
Comments
There are 6 comments. Join the discussion
1. Joe Buckley (MBA)
Interesting Idea, But I don't see how anything with this degree of specialisation can really call itself an MBA
An MBA is a general qualification, which should deal more with the long-term basics of people, organizations and finance. The current state of outsourcing, and certainly the consensus on whats 'best practice' is evolving too fast.
It seems to me that a specialist course on top of (or even without) an MBA would be more whats needed
Is it just that people won't pay for a business-related course unless it calls itself an MBA? - Things were different when I were a lad...
2. Tony Sygrove
I welcome the proposal for this MBA, as I have been involved in several outsourcing contracts which I have to say I was not in favour of, due mainly to the fact that my peers were more involved in the hype rather than the real issues of why would we need to outsource? In most cases companies believe that outsourcing will save them the resonsibility of managing what in is seen to be none core business, that is technically seen as being in the 'too hard' box and a drain on their financial resources. What they don't realise is that unless the SoR, SLA'S and SLG's are not 'water tight' they are potentially heading for far greater service issues that those already being experienced. They are also not aware that the management of an outsourced service requires a total new mind set and management skills.
It will be extremely interesting to see how these University's tackling this very complex issue.
My main concern as with most other acedemic qualifications is that a piece of paper does not solve the problem, it is the manner in which the qualification is applied in the 'real world' and a lot of that depends on the course material and the way the student applies what they have learnt.
Interesting times indeed, and the proof will be in the pudding as they say, when in years to come we see a down-turn in the number of companies migrating back to in-house solutions.
3. Drew Edgar
The accredited MBA is the paramount qualification in general & strategic management.
This idea is fatally flawed in that the concept is fundamentally at odds with the principles & purpose of the MBA.
A specialist BA or MA in the various aspects of outsourcing, along the lines of those in say finance/accounting or marketing is the appropriate channel to address the idea
4. Guy Kirkwood
Nothing beats experience. Drew Edgar is absolutely right. I believe that this has more to do with falling numbers taking (mostly discredited) MBAs than any desire to raise the standard of outsourcing deals.
My recommendation is to use the experts - those people who have been through this process a number of times. Call TPI, Morgan Chambers, Orbys or EquaTerra. Don't waste time on an "outsourcing" MBA.
5. anonymous
Good afternoon Sir,
Can you keeo me informed on the universities that will develope these new MBA's. I am seeking to gain this qualification.
Thanks
Femi Hezekiah
Telewest Broadband Plc. UK
6. Mohan
This is a great move. MBA's and managers need a strong handle on the workings of Offshoring and Outsourcing.
- Mohan; Author:" Offshoring IT Services"
http://www.offshoringmanagement.com/theBook.htm