Pressures to reduce costs, improve performance, challenges of managing skilled resources, complex market dynamics and the infinite choice of services have forced corporate companies and SME's the world over to focus on core competencies .
Large business houses and conglomerates have adopted best practices to create concentrated global efficiencies. Clearly, the merits of outsourcing have long been established, eliminating any doubts raised by corporate executives, analyst and critics.
While the benefits of this strategy are a given, the many pitfalls of outsourcing have warranted the need to outline the drivers in each business process. At the onset of any outsourcing exercise, it would help to answer some of these questions:
Is this a core or non core business?
Is this a category spend function, strategic allied function or a non strategic function?
Is it a discrete business function? Can it be ring fenced and out-tasked?
Do we have the specific skills for this task?
Can we specify the desired results?
Will we need to maintain this function to sustain our main business?
Do we really understand how much it cost our business to handle this work ourselves?
What are the recurring skills, hiring & training costs, operating costs?
Does it help improve our asset utilization?
What would be our lead time to market if outsourced and otherwise?
Can there any threat of technology obsolescence?
Does the outsourcing supplier have a credible track record and specialist expertise?
Are we happy with the SLA the external supplier can offer our users?
The list of questions could go on at length. Healthcare, Banking & Finance and Government services, each industry could have their own questions based on the complexities that stem from privacy laws, legalities, constraints and risks, which would otherwise go unnoticed.
∑Vision can help analyze these business processes and identify the potential business streams that are appropriate candidates for outsourcing.
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