Outsourcing Organizational Capability Assessment

On November 3, 2011, in Outsourcing, by Business Development Group

It is important that the business assess its capability to manage the outsourcing – from outsourcing through governance.As a part of developing strategy for the sourcing process and before initiating the outsourcing initiative, it is important that the business assess its capability to manage the outsourcing initiative – from outsourcing through governance. As cited by the International Association of Outsourcing Professionals (IAOP) organizational assessment is just as important as assessing the maturity and stability of the process.

The following factors are important to consider when assessing the organizational ability to manage outsourcing:

Outsourcing Competency

Understanding the end-to-end outsourcing process, tools and techniques (ideally, having “Certified Outsourcing Professionals” on staff to help in this area) and be able to utilize it effectively.

Related article: Call Center as a Marketing Channel

Strategic Coalition

Ability to create a strategy and creating alignment around the strategy from the top of the organization to the management level that would be directly impacted by outsourcing.

Related article: Outsourcing Trend: Customer Satisfaction to Customer Loyalty

Customer Impact

Knowledge of customer impact on various processes and the sensitivity the customers will have for outsourcing of process that impacts them.

Read related article: Drafting Outsourcing Agreements

Process Expertise

Knowledge and understanding of the processes, metrics and drivers.

Read related article: How to Outsource Services Effectively.

Governance Style

Ability to manage the service provider without being involved in their day-to-day management. This is generally described as being able to manage “what” versus “how”.

Related article: Cost Benefits – Why Lawyers Should Consider Outsourcing

Relationship Management

Ability to create and sustain relationship with an outside organization such that the governance process is effective.


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12 Responses to “Outsourcing Organizational Capability Assessment”

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