History of Outsourcing Part-2


-----Outsourcing Strategy----
An "outsourcing strategy-- is the process of determining if and what you should outsource. Once you determine that outsourcing is a good fit for your organization, you need to identify which functions you should outsource.

A multi-step approach, including Planning, Analysis, Design, Implementation and Operations phases along with a contingency exit strategy is required to achieve a successful outsourcing implementation.
 
-----Defining Goals and Objectives---
Before you can determine what processes to outsource, you need a clear understanding of your organization's strategic goals and objectives. Is the sole driver for considering outsourcing cost reduction? Is the objective to increase scalability and flexibility, so that mergers and acquisitions can be better integrated into the organization? Does management hope to drive growth through a redirection of capital and human resources? Is the objective to improve quality, or more efficiently and effectively service customers?

An understanding of the company's objectives provides insight into the type of relationship your company is seeking and how the outsourcing initiative should be managed.
Typically, organizations can expect to realize the following benefits from an effective strategic outsourcing initiative,,,,

Ex topics 

Selecting the Processes to be Outsourced
Processes that are highly transaction and have low strategic value non-core  to your organization are typically good candidates for outsourcing
The definition of a non-core competency is any process that does not generate income or help your organization increase its market share,,, To help identify internal business

Before you can determine what processes to outsource, you need a clear understanding of your organization's strategic goals and objectives. Is the sole driver for considering outsourcing cost reduction? Is the objective to increase availability and flexibility, so that mergers and acquisitions can be better integrated into the organization? Does management hope to drive growth through a redirection of capital and human resources? Is the objective to improve quality, or more efficiently and effectively service customers?


An understanding of the company's objectives provides insight into the type of relationship your company is seeking and how the outsourcing initiative should be managed.
Typically, organizations can expect to realize the following benefits from an effective strategic outsourcing initiative An understanding of the company's objectives provides insight into the type of relationship your company is seeking and how the outsourcing initiative should be managed.
Typically, organizations can expect to realize the following benefits from an effective strategic outsourcing initiative


 

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