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Resources

Outsourcing

Resources

Outsourcing

This page was last updated on May 19, 2017

Peter Drucker, management consultant and author, calls outsourcing America’s fastest growing industry, as more and more businesses outsource non-core business activities to focus their attention on their core competencies.

When it is done successfully this can save money and help competitiveness, especially when operating in a global market. British Airways for example saves$23m for every 1,000 jobs the airline sends to India.

Many business have a tendency to consider outsourcing for top and basic level support services, such as strategic business advice and premises cleaning services, but not much else in the middle. Certainly the business consultancy industry grew much quicker than many of its clients, with global revenues growing by 7% in 2016 to $133bn

What might be outsourced?

In reality, there are numerous activities for which outsourcing may be appropriate including:

Advantages of outsourcing

When done well, outsourcing offers advantages such as:

Potential disadvantages

Conclusion

In the experience of our guests, outsourcing is most likely to be successful if control is retained by a strong leader who really understands what is being outsourced, who can manage the relationship, share the objectives and success measurements and monitor the work produced/service provided. It’s the solution that needs to be outsourced, not the problem itself. Careful documentation of service standards / expectations and responsibilities is crucial, and this can be very time consuming.

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