- How Deep Should the Relationship Be?
- What is the strategic importance of this process now and in the future?
- How complex is this process?
- How much change do you anticipate in this process over the life of the contract?
- How interdependent is this process with other processes in the firm?
- Is the value in this process created through specialized expertise or through technology and repeatable routines?
- How tightly interconnected are the activities within the process?
- To what extent do you want to change this entire process?
- To what extent does your own firm have the management bandwidth to manage multiple providers?
- To what extent do you need a provider with market power to get the benefits you’re seeking?
To what extent are we seeking each of these objectives:
- Learning from the provider
- Rapid implementation of standardized capabilities
- Redirection of management focus to other areas
- Access to new technology
- Scale-driven cost reduction through standardization and centralization
- A process that operates at the level of best accepted practice, in contrast to a highly customized or leading edge process
Does the organization or the outsourcing provider (OP) have:
- Better access to advantaged assets–lower cost, higher quality, or both
- A lower cost to acquire assets
- Unique expertise in acquiring and managing assets
- More opportunity to share assets with others to improve costs and handle fluctuating demand
- Better ability to invest to maintain or improve asset quality
- In addition, how important and difficult is it to integrate these assets with the organization?
Business Process Outsourcing Big Bang: Creating Value in an Expanding Universe
by Susan Cantrell
Subject: Outsourcing / Offshoring Questions