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


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
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