Outsourcing Provider

1

• Potentiam
• Published By
• https//potentiam.co.uk/outsourcing

2
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.
3

• 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.

4

• 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.

5

• 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

6

• 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.

7

• 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