Outsourcing Provider - PowerPoint PPT Presentation
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Outsourcing Provider
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Outsourcing is a business practice used by companies to reduce costs or improve efficiency by shifting tasks, operations, jobs or processes to an external contracted third party for a significant period of time. Outsourcing normally frees up cash, personnel, facilities and time resources for a company. – PowerPoint PPT presentation
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Title: Outsourcing Provider
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- Potentiam
- Published By
- https//potentiam.co.uk/outsourcing
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There is a body of research that suggests many
outsourcing deals are not delivering the benefits
expected by client organisations.Common themes
centre on a mixture of unexpected costs and
issues surrounding the relationship. Yet despite
these well publicised challenges there remains a
significant client investment in outsourcing. In
fact, the move towards outsourcing more core or
strategic elements of the business coupled with
the growing importance of greater collaboration
with outsourcers is viewed as a way to achieve
greater flexibility and agility. These
challenges and developments suggest that
outsourcing continues to be viewed overall as
significant in the realisation of business goals
and strategies although there are many who are
currently in existing outsourcing arrangements
that are failing to deliver the benefits
expected.
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- It is our belief that outsourcing can be an
effective strategy however there are a number of
aspects that have to be understood and actively
managed both from the outset and throughout the
life of the contract to realise the expected
benefit for the clients' business. - The right blend of ingredients
- Having the right ingredients alone is not enough
to form the basis of a successful recipe - Any memorable gastronomic experience has behind
it an exact blend of quality ingredients and
other elements including skills, experience,
preparation, timing, tools and monitoring to
ensure the delivery of a successful outcome for
the customer. At Aurora Partners we believe the
same can be said of outsourcing.
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- The objective of this article is not to describe
an end to end process for outsourcing after all
there are plenty of articles about that. It is
looking to explore, from a client perspective,
those aspects of the "outsourcing recipe" that we
know from experience are often overlooked or
undervalued and yet we believe are critical in
terms of delivering the required value throughout
the term of the contract. - Looking at these aspects in more detail will help
those involved in the procurement and management
of outsourcing to better understand their
existing outsource challenges and provide some
insight into how to improve the successful
prospects of future outsourcing ventures. - Having said this is not an end to end guide to
outsourcing it is important however to provide
some context. The outsourcing process can be
broken down into 3 key stages Business Case
Development, Tendering Selection and Managing
the Contract.
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- Creating the right conditions
- At the outset it is important to ensure the right
"conditions" are created so it's worth recapping
on a few basic outsourcing principles - Understand what your organisation expects to
achieve through outsourcing and what services it
is planning to outsource - Cost saving is one driver for outsourcing but
many organisations also outsource to obtain
access to skills, drive innovation and to manage
complexity/scalability more effectively - Outsourcing is typically more attractive and less
complex for routine/repeatable activities or
commoditised services
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- Outsourcing those aspects of the business that
are considered core, critical or strategic
carries with it a high impact associated with any
failure. This type of outsource requires a higher
risk profile to be understood and managed and
requires a more mature, collaborative based
approach. - Ensure that the business requirements, and how
systems and capabilities can be leveraged, are
clearly understood as this is essential to
defining the service, the appropriate service
levels, contract clauses and ultimately the price
of the contract. - Recognise that the business strategy and
technological developments may change during the
term of the contract and therefore there is a
need to build in the appropriate level of
flexibility and responsiveness into the contract
to avoid excessive cost through subsequent
changes.
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- Summary
- Outsourcing is a business practice used by
companies to reduce costs or improve efficiency
by shifting tasks, operations, jobs or processes
to an external contracted third party for a
significant period of time. Outsourcing normally
frees up cash, personnel, facilities and time
resources for a company. - Visit this site to learn more
- https//potentiam.co.uk/outsourcing
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