Steps to Take Before Outsourcing

On November 14, 2011, in Outsourcing, by Business Development Group

The foundation for a successful transition to an outsourced environment is built-in throughout the outsourcing process itself; in selecting the scope of the process to be outsourced; in developing the process diagram; selecting the provider; building the key performance indicators; and pricing; contracting, and negotiating the relationship.

The foundation for successful outsourcing is to understanding your organization and your needs.  Here are the key steps before you start:

1) Selecting

Upon selecting the scope of the process to be outsourced, the first stage answers the essential questions: is outsourcing this business process or function appropriate for this organization at this time? What are the specific requirements?

2) Developing

It is the development of the business case and the analysis of the provider marketplace to confirm that the anticipated benefits are, indeed real.

Related article: Philippine Outsourcing: What is a BPO Virtual Captive?

3) Choosing

Establishes and gain organizational agreement on an objective and consistent process for reviewing, assessing, weighting, and scoring potential outsourcing services providers, factors such as competencies, capabilities and relationship dynamics.

Related article: How to Lead an Outsourcing Project

4) Building

Goals or targets that measure how well an organization is doing on achieving its overall operational objectives or critical success factors for a particular project. Key Performance Indicators must be objectively specified in order to provide a quantifiable and measurable indication of the organizations progress towards achieving its goals.

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5) Pricing and Contracting

Because every company and every outsourcing deal is different, it is the understanding and ability to apply the most appropriate pricing model and then structure the contract and its unique commercial terms for each situation that leads to successful outsourcing outcomes.

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