SOURCE: Aberdeen Group

July 09, 2008 14:14 ET

Reduce Time-to-Market Through Innovation in Outsourcing

Partnering With R&D Providers to Achieve Innovation, Decrease Cycle-Time, and Significantly Reduce the Time It Takes to Get Your Products to the Market

BOSTON, MA--(Marketwire - July 9, 2008) - In the newly released benchmark report, "Software Development and Innovation: Speeding 'Time-to-Market,'" Aberdeen Group, a Harte-Hanks Company (NYSE: HHS), found that Best-in-Class organizations realized an 18% decrease in time-to-market as a result of their R&D / Engineering Outsourcing engagement -- a rate that is over 26x greater than Industry Average organizations.

This report examined and analyzed organizations' planning, deployment, use, and management of Research and Development (R&D) and Engineering Outsourcing to provide a roadmap for constructing the internal framework necessary for a successful outsourcing relationship. As part of their outsourcing strategy, Best-in-Class organizations determined and allocated the proper amount of internal resources, incorporated clearly defined Service Level Agreements (SLAs), utilized a variety of analysis and measuring tools, and essentially viewed their outsourcing partner as an extension of their internal R&D team to achieve product differentiation and expedited time-to-market. In fact, Best-in-Class organizations are 123% more likely than Laggards to ensure their outsourcing provider has "skin in the game." By viewing the outsourcing engagement as a value partnership rather than merely and employee-contractor relationship, most often accomplished by contractually stipulating that both the outsourcer and outsourcing provider have a financial stake in meeting and exceeding project objectives, Best-in-Class organizations experienced an 18% increase in research productivity / efficiency, as well as a 13% increase in customer satisfaction.

"R&D and engineering outsourcing is most effective when organizations choose partners that share the business-critical mindset about the work they are performing," said Ralph Rodriguez, Senior Vice-President of Research, Technology Markets group. "In R&D it is especially relevant that delivery teams leverage deep knowledge to develop insights and find new ways to add continually value through the communication and application of their professional expertise."

The report educates end users on how Best-in-Class organizations are developing and managing their outsourcing initiatives as compared to others, and recommends clear actions to improve end user satisfaction and increase their ROI through the correct blend of capabilities, policies, and procedures. SLA management, internal structuring, monitoring and optimization tools, as well as other key performance indicators are reviewed.

A complimentary copy of this report is made available due in part by the following underwriters: Achievo, iSoftstone, Dextra Technologies, and Ramco. To obtain a complimentary copy of the report, visit: http://www.aberdeen.com/link/sponsor.asp?cid=4898.

About Aberdeen Group, a Harte-Hanks Company

Aberdeen is a leading provider of fact-based research and market intelligence that delivers demonstrable results. Having benchmarked more than 30,000 companies in the past two years, Aberdeen is uniquely positioned to educate users to action: driving market awareness, creating demand, enabling sales, and delivering meaningful return-on-investment analysis. As the trusted advisor to the global technology markets, corporations turn to Aberdeen™ for insights that drive decisions.

As a Harte-Hanks Company, Aberdeen plays a key role of putting content in context for the global direct and targeted marketing company. Aberdeen's analytical and independent view of the "customer optimization" process of Harte-Hanks (Information - Opportunity - Insight - Engagement - Interaction) extends the client value and accentuates the strategic role Harte-Hanks brings to the market. For additional information, visit Aberdeen http://www.aberdeen.com or call (617) 723-7890, or to learn more about Harte-Hanks, call (800) 456-9748 or go to http://www.harte-hanks.com.

© 2008 Aberdeen Group, Inc., a Harte-Hanks Company
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