Finding The Right Outsourcing Partner
A right outsourcing partner can create perfect strategy around your business. Before doing that, it is vital to evaluate & determine the best outsourcing destination. To start off, ineffective strategy is often the reason some of the largest deals fail to achieve their objectives.
An effective strategy needs to take into account the following four key considerations. Why Outsource? What Functions to Outsource? What is the Future Service Delivery Model? How to Select a Supplier?
It is vital to first achieve internal buy-in and broad-based consensus on the way forward within the organization. At the heart of an organization’s sourcing strategy, the firm must understand its motivation for outsourcing and what it would like to achieve.
What Functions to Outsource?
Few would contest the importance of clearly defining what should be outsourced. However, surprisingly and all too often, large deals fall through or the predicted benefits fail to materialize due to incorrect scope.
What is the Future Service Delivery Model?
Defining the optimal future outsourcing delivery model for a service is undoubtedly the most complex of all the four key considerations. Organizations need to robustly analyze options and then select the most appropriate service bundling strategy. Consider whether one vendor should deliver all services, and sub-contract to other companies as required. Deciding an appropriate level of service bundling before engaging the supply market is critical. Getting it wrong can prove detrimental in terms of costs, time and brand reputation.
How to Select a Supplier?
This fourth and final key consideration pertains to the vendor selection process. There are two key approaches typically used. An open competition (known as an RFP) or a noncompetitive approach involving one or more carefully selected suppliers. A second emerging debate revolves around the most appropriate RFP process, namely conventional versus collaborative solutioning.