It's no longer a question of ‘should you outsource’, but why haven’t you outsourced?

Dave HenshallOutsourcingLeave a Comment

Businessmen 6‘Its not should you outsource’ but why haven’t you outsourced?

‘Its not should you outsource’ but why haven’t you outsourced? – CPO’s must have an outsourcing strategy for their company – we provide some pointers to help you develop your outsourcing strategy.

Before outsourcing any part of their organization, companies should answer questions like the following as part of a rigorous evaluation:

  1. What are the goals we want to achieve from outsourcing?
  2. What are our core competencies and will the company lose competitive advantage if the service is outsourced?
  3. Which services or corporate support functions are not integral to or close to our core competencies?
  4. What is the current value contribution of the service to the firm and what is it costing to deliver that value?
  5. Can we fix ourselves internally before we consider outsourcing and what additional impact/cost could it have if world-class practices were achieved?
  6. In what areas could service providers provide these services at a lower cost while increasing the value contribution over time?
  7. What kind of relationship with a vendor is most appropriate?
  8. What are the risks of outsourcing, and how can they be mitigated?
  9. What is the cross-functional impact?
  10. How do we deal with the people and corporate culture issues?

Following a process as described below can help structure the outsourcing evaluation:

Outsourcing Decision Process

Outsourcing Decision Process


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