Outsourcing at the heart of the corporate strategy
To be a success, this decision must be taken in full consultation with the various parties involved.
When should a company outsource?
This question usually arises when a company looks for economical solutions to produce a good and / or a service. However, there are many others reasons that justify this choice.
What are the elements justifying an outsourcing?
In addition to economic reasons, there could be the following: obtaining a benchmark for internal performance, quick access to a foreign market
or to specialists, little or no knowledge in a specific area within the company, gain in flexibly with market fluctuations or share a significant investment in a specific project or structure.
Should a company systematically outsource?
For companies that are asking the question, it is essential to understand the financial consequences of the outsourced product / service as well as evaluating the different possible partners. The decision to outsource must be collegial in most cases and very carefully taken.
Can an outsourcing go wrong?
Yes, indeed, there are five main reasons for a failure. The first one occurs when the “client” expectations and goals are not sufficiently clear, measured and understood by the outsourcing supplier. Second is a price model often imposed by the client. The third cause of failure results from unstructured communication between the client and the supplier. When communication between the parties is poor and conflicting, the level of service decreases. Finally, if mutual interests are ignored, outsourcing advantages are fading.
Which are the main sectors concerned?
They are quite numerous: finance, operational functions, IT, technical maintenance, procurement, infrastructure, etc.
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