Outsourcing Evaluation & Implementation
Outsourcing has been a much talked about
topic recently. It has become especially interesting to companies
as they attempt to find ways to decrease costs and focus on core
competencies. Key functions that are frequently considered for
outsourcing include, but are not limited to, customer service,
fulfillment, IT infrastructure, and applications. While fraught
with challenges, outsourcing initiatives can result in significant
payoffs. These challenges include:
-
Determining if outsourcing is a viable
option
-
Determining how to collect the
requirements, design the RFP, and handle the submission and
evaluation process
-
Determining which vendor is best suited to
meet your current and future needs
-
Determining what you will save by going
with an outsourced solution
-
Ensuring that you actually receive the
anticipated savings and level of service you expected
-
Identifying opportunities for improvement
Customer Centricity has a prove methodology
to ensure a successful outsourcing initiative enabling our clients
to achieve the anticipated results.
Outsourcing:
From Evaluation Through Implementation
Customer Centricity works with its clients to
ensure the effective and efficient evaluation of outsourcing
opportunities. And, if outsourcing a particular business function
is feasible, we ensure our clients experience the best possible
outcome during the implementation through ongoing management of
the outsourcing relationship. Our outsourcing evaluation and
implementation methodology consists of 4 steps:
Step 1) Top-level Outsourcing Analysis
The first step is to perform a top-level
analysis to determine if outsourcing is a viable option to enable
your company to more effectively meet gols and objectives. The
objective is to validate the core competencies of the firm and
confirm or identify the function(s) to consider for outsourcing.
Finally, top-level research is performed, where necessary, to
determine if service providers exist with capabilities to
outsource the targeted function.
Step 2) Detail-level Service Provider
Evaluation and Recommendation
If the top-level analysis confirms that
outsourcing “may” be a viable option, the next step is to solicit
proposals from outsourcers that focus, as a core competency, on
the area(s) of business under consideration for outsourcing. The
objective of this step is to obtain information from outsourcers
that enable the final determination of the cost benefit of
outsourcing, including recommended vendor(s) that can meet
price/performance requirements.
Step 3) Implementation
Assuming that an outsourced service provider
has been chosen, implementation can now commence. The outsourcer
(per the RFP) should be expected to manage the entire process of
implementing the outsourced solution. However, there are several
considerations during this phase of the project, including impact
on existing staff (both in terms of their direct participation in
the implementation and the long-term impacts on their jobs),
changes to existing practices and procedures that need to be
documented under the new outsourced relationship, and when old
“services” can be turned off or let go.
Step 4) Ongoing Management / Continuous
Improvement
A key requirement for the ongoing management
and continuous improvement of the outsourcer is the client putting
into place a single point of accountability for managing the
entire relationship. This ensures that all commitments and
expectations are centrally managed and achieved (or exceeded),
that there is focus on a daily basis on continuously improving
performance, and, most importantly, that the client manages the
outsourcer vs. the outsourcer managing the client.
Customer Centricity’s Project Management
Customer Centricity manages the whole
process, providing objective analysis and recommendations leaving
your resources free to spend the time and thought necessary when
considering outsourcing, without worrying about the mechanics of
the process for information gathering and service provider
selection. We have helped many companies across a variety of
industries successfully evaluate and implement outsourcing
relationships – faster and more efficiently than they could have
on their own.
If you are considering outsourcing, we can
help. Contact us to discuss your specific situation and
requirements and put a plan into place to help determine if it is
right for your organization.
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