April 15, 2011

Things to Consider when Outsourcing

Some Idea to consider while outsourcing:

1-  Understanding what to outsource depends on understanding where the competitive advantage of the company comes from. the company's competitive advantages should not be outsourced if possible.

2-  Outsourcing is not about cutting costs only. The cost might increase but there will be an increase in the revenue too. Moreover, it might result in cutting some other costs.

3- It is important not to lose complete control over the outsourced activity because the client might not have the ability to control or effectively manage the vendor.

4- When an activity is outsourced, it is important to assign some mangers to handle the vendor.

therefore many researchers suggest that a exiting strategy should be established in the contract to handle any issues with the contract, security, or the quality delivered. this exiting strategy allows the company to switch the vendor without any damage.

- 2 comments by 1 or more people Not publicly viewable

  1. It seems like outsourcing creates more responsibility for a company. Its value in terms of monetray and non-monetary benefits needs to be assessed prior to investing in it.

    17 Apr 2011, 21:36

  2. Sure, I found out that it is a very deep subject were it has to be carefully assessed generally and regarding the outsourced service itself.

    19 Apr 2011, 01:17

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