The Types of Outsourcing Clients: Which Type Are You?

On June 20, 2012, in Outsourcing, by Business Development Group
Outsourcing has so much more to offer than simply “cutting costs”. By finding the right outsourcing service provider with the right skills and talent that works for you, you secure both cost benefits and business value for your organization.

Outsourcing has so much more to offer than simply “cutting costs”. By finding the right outsourcing service provider with the right skills and talent that works for you, you secure both cost benefits and business value for your organization.

In their article “Time to ring-fence “Lights On Outsourcing” and focus on “Business Transformation Services”, Horses for Sources (HfS) categorized outsourcing clients into three “camps” according to their use of the outsourcing initiative in alignment to their business objectives.

Type 1

The first group, labeled as the “Lights On Camp”, describes those organizations that outsource simply for the cost advantages. These are the companies that do not view outsourcing as a strategy or a long-term solution. For them, outsourcing is simply a way to cut costs, handing over a business process to an outsourcing service provider who does it better, quicker, and cheaper.

Related Article: Demand for Outsourcing Consultants Increasing

Type 2

The second group, labeled as the “Efficiency Camp”, describes those organizations that recognize outsourcing, if implemented wisely, as a strategy for process improvement.

“We don’t see a hell of a lot of competitive differentiation in these processes, but we do recognize that there’s more than an initial 30% we can lop off the budget if we’re smart about this. So let’s plan for phased process improvement and additional layers of processes to externalize in the future.”

Related Article: Hiring the Right KPO Consultant

Type 3

The third group, labeled as the “Transform Camp”, describes those organizations that are aware that simply outsourcing certain business processes does not solve the problem, and even runs the risk of function stagnation. For them, investing in process improvement is a vital part in outsourcing, as well as the role of the outsourcing provider in improving the overall business function.

“They [outsourcing providers] need to understand how to help us improve our business outcomes, based on the combination of our in-house teams, our shared services and what we have externalized to third parties.”

In comparing these three groups, it’s pretty much obvious which group is more ambitious in delivering business value and leveraging the outsourcing initiative to its full potential. Outsourcing has so much more to offer than simply “cutting costs”. By finding the right outsourcing service provider with the right skills and talent that works for you, you secure both cost benefits and business value for your organization.

Related Article: Time to ring-fence “Lights On Outsourcing” and focus on “Business Transformation Services

 

Casey Answers to Outsourcing Questions!

Meet outsourcing Casey!

2 Responses to “The Types of Outsourcing Clients: Which Type Are You?”

  1. Marineide says:

    I wish to show my many thanks to the wrteir for rescuing me from this challenge. As a result of surfing by means of the the web and obtaining notions which are not practical, I figured my entire life was gone. Living devoid of the approaches towards the problems you've got sorted out all through your very good post is usually a critical case, and ones that could have in a wrong way affected my entire career if I hadnt arrive across your website. Your own knowledge and kindness in controlling every item was tremendous. Im unsure what I would have done if I hadnt encountered these a level like this. Im able to at this time appear ahead to my foreseeable future. Thanks very much for this high top quality and results-oriented guide. I'll not hesitate to propose your internet site to anyone who will will need hints about this matter.

  2. I simply want to say I'm all new to blogging and truly enjoyed this website. Likely I’m likely to bookmark your blog post . You really have superb well written articles. Thank you for sharing with us your web page.

Leave a Reply

WordPress主题



WordPress Themes