Build your professional network on facebook via our app Go to app
 
<< Prev  4 of 5 in Topic  Next >>
Posted in Community :

IT Offshoring strategies

 
Outsourcing for Value by Karthik, Consultant

Outsourcing for Value

By : Karthik, Consultant
Industry : Management & Strategy Consulting Functional Area : Outsourcing
Keywords :

strategy

outsourcing

performance

value

Activity:  1 comments  278 views  last activity : 07 06 2010 20:18:04 +0000
Share
 
 
 

In assessing strategically whether to outsource or offshore and continue operating within, it is critical to focus on value. The driver for choosing to outsource/offshore or not to do so should directly stem from value drivers of the organization.

Some questions that need to be answered while considering outsourcing/offshoring would be:

1. Will outsourcing improve the performance of the process/task/activity?

2. Will outsourcing result in losing inhouse talent?

3. Will outsourcing result in offering existing talent with more value-addition job responsibilities?

4. Have we explored all other performance benefits that accrue by outsourcing other than cost minimization and time-based delivery optimization?

The outsourced business process must nevertheless be fully integrated with the performance management system. While most organizations drive outsourcing agreements through the SLAs with specific metrics, assessing critical metrics that can readily translate to value creation for the organizations should precede the signing of SLA.

 

go to top
 
1 comments on "Outsourcing for Value"
Sort by: Most Recent Top Rated
  Commented by  Surendra Sinha, Senior Consultant, Tata Administration Services (TAS)    | 02 20 2009 10:01:01 +0000 
Few more questions to be addressed...

* WHY – Why should the company outsource? For cost cutting or to improve or change business processes? 

* WHAT- What should be outsourced? back office operations, the customer service interactions, or other processes those are strategic to the business?

* WHO – Who should you choose to entrust with a part of your business? 

* HOW – The how relates indirectly to the WHO. You have to decide if you are going for customized, high-value solutions, or standardized, cost-effective ones. You also have to coordinate how your internal and external personnel work together, and set a standard to monitor and evaluate performance.

* WHERE – Where should you send your operation? closer to home ? This depends on the complexity and range of the operations you are outsourcing, and the control you would like to maintain over them. 

Thanks
Add your comment on "Outsourcing for Value"

Rate:
Submit
 Found the article "Outsourcing for Value"  interesting ?  Share with your connections and communities  
Leading Recruitment Firm.
Leading Recruitment Firm.
Viewers also viewed
Indian MBA vs International MBA
 
452 referals 18 arguments, 223 views
In todays rapidly changing scenario companies are attracted to those guys who are presentable...
 
1411 referals 38 arguments, 568 views
Danger to India's BPOs and Call Centres? vs No danger to Indian economy!
 
381 referals 10 arguments, 405 views
more...  
Recent Knowledge (76)
Hi All, Came across a nice artical, thought beneficial for all HR professionals : What else does...
 
30 referals 26 comments, 1802 views
In many ways, a manager has to be a leader, so therefore a manager will have many of the traits...
 
58 referals 24 comments, 319 views
A Sufi Story Once upon a time, a fox that lost its legs lived in a forest. A forester who used...
 
294 referals 8 comments, 168 views
more...  
Sponsored Jobs
More From Author
India, in fact, has been a democratic country in most of its history, albeit, not in the form that is widely held as democratic in the contemporary context. If democracy refers to deriving governing power from the people, citizens of India have...
While passion is central to entrepreneurship of this kind, when it comes to taking the jump it would hold the entrepreneur in good stead to evaluate his readiness and assess the support/advise he would require in various areas. Having a business idea...
A boss can be jealous when he feels threatened by his sub-ords' progress/popularity. However, it can go to levels of becoming an issue if the boss feels its likely that his sub-ord is going to grow faster than him. In case of most organizations the...
more...