Global Outsourcing

>> Core and Non-core Competencies

If you are thinking about outsourcing as a key part of your business strategy then you need to give careful consideration to exactly what work to outsource.

Going through the process of outsourcing is a great opportunity to create a big picture map of your processes and which ones are most valuable to your clients. Creating awareness and alignment around this and getting all stakeholders to buy-in to it will serve you well throughout the programme. It will help inform decisions such as what to move and what not to move and when to use third parties versus your own captive centres. If you design a programme well the first experience will be positive and this might increase the appetite to do more. At this point knowing what is on or off limits becomes critical.

As you build that big picture of your processes here are some of the factors to consider:

  • How does local knowledge impact your client relationships? Often there is certain knowledge that is critical to the customer experience that only practically comes from living in the same country which can influence what you can move and to where.
  • Do your clients need you to be in certain locations where you do not currently operate.
  • What is the point at which a third party could copy your product or service with the processes you are considering moving? While you can build strong contractual frameworks, the loss of practical knowledge to a third party can be difficult to recover if needed. This maybe of an issue if you want to build a set of new processes and the existing ones are in maintenance mode.
  • Is the process a commodity that many people can do? The inputs and outputs might be very important in your own big picture map but the details might be a distraction.
  • What level of metrics do you have that can support factual decision-making to ensure that you are neither overly optimistic or overly pessimistic in your approach.

Building that big picture map of your processes along with clear criteria for making and assessment of what to move and what not to is an important step in a programme. We would love to work with you to see how we can help.

Latest version updated 16th November 2017

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