Outsourcing

Outsourcing can be a useful approach for reducing cost and allowing your company to focus on core competencies. The problem is that making the wrong decisions can have exactly the reverse effect, tying up time you don't have and deflecting key resources to sort out things out.

Outsourcing is rarely a silver bullet and taking the right approach is vital. This takes deep experience and strong business oversight, as well as solid transition and operations management. Industry is littered with outsourcing deals that have failed to meet expectations and as a result many subsequently seek to bring outsourced services back in-house. This just serves to show that outsourcing is a difficult and sometimes complex decision that benefits from expertise in outsource change management.

 

We focus on the things that are critical to successful outsourcing, for example:

 

  • Ensuring clear understanding of the business problem you are seeking to solve by outsourcing
  • Clarifying the vision - the type of outsource and relationship you seek, the scope and how success will be judged
  • Developing a business case which acknowledges the cost of change and the cost of ownership
  • Selecting outsource partner(s) and developing an effective relationship, with commercial arrangements that are fair to both parties
  • Defining the services and service management processes so that everyone is clear on how the outsource will work
  • Establishing the ‘retained organisation' to manage the service and the relationship, utilising a new skill set
  • Managing the people implications and motivating people through this difficult period of change
  • Managing the transition from the business/function to the outsource partner while maintaining business/service performance and minimising risk to the business
  • Communicating with the stakeholders throughout to set the right expectations
  • Ensuring that both parties are set up for ongoing management and continued success

 

 

In addition to new outsource arrangements, Project One is experienced in improving an existing outsource arrangement or resolving issues in a failing service. We work with both parties in a constructive manner to bring clarity and direction, and to agree action plans. We also have experience of working directly with outsource partners to help them deliver on their commitments.