In our September article “Strategic Advantages of Outsourcing”, we outlined several benefits typically incurred by outsourcing processes within your business. We found the greatest benefits were cost reduction, improved services, increased service offerings, and greater operational flexibility. While outsourcing initiatives do provide organizations with many benefits, outsourcing isn’t for everyone. Every company operates differently. In [...]

In our article “Preparing for Outsourcing: How to Build Your Base Case for a Cost/Benefit Analysis“, we showed you how to create a base case cost scenario that could be used to support a decision to outsource. In the article, we cited that most P&L decision makers in the U.S. (approximately 72%) already outsourced one [...]

Is your company considering outsourcing? There are a number of benefits that can justify outsourcing and most organizations in the United States outsource at least one of their non-core business functions. Approximately 72% of top decision makers in the U.S. said their companies have already outsourced one or more business processes to external service providers [...]

In Part 1 of “What to Outsource?“, we outlined a simple process for identifying your organization’s core competencies using Michael Porter’s Value Chain Analysis. Once you’ve determined the processes and services within your company that make up your core competencies, you can review and assess the leftover processes to determine whether it makes sense to [...]

Outsourcing isn’t for everyone. Every company’s situation is unique. Even company’s from the same industry can operate so differently that outsourcing may make sense for one but not another. Before your company considers outsourcing, consider the following advantages: Labor arbitrage – Reduced labor costs is one of the most common reasons companies cite for outsourcing. [...]

Before making an outsourcing decision, one of the most important analyses you need to conduct is determining your core competencies, i.e. what your company does well. Guiding principles say that you should retain the activities that are your organizations core competencies and outsource ALL the rest. You or your organization might not want to outsource [...]