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Benefits
Outsourcing
enables organisations to change their current practices often far more
quickly than internally driving it. A quantum leap in terms of having
technology and skills at the organisation's disposal can be achieved.
The offer of flexibility in delivering the changing outcomes required
over time by the organisation is attractive. Often, the nature of the
outsourced work may be core to the provider's work although non-core to
the organisation. In such circumstances, the expectation is that the provider
will continue to retain and upgrade their skill and knowledge levels as
there is an inherent incentive to do so.
In a nutshell
you get following types of Benefits:
- Gives you fast entry to market
- Gives you ability to focus on gaining market share
- Minimizes your major capital investments in a billing system, training
and work force management.
- No duplication of services
- Allows you to focus on your core business and expertise
- You get the cost effectiveness of Singlepoint's streamlined processes
and investment
- You get industry benchmarked performance standards
- You get customer friendly and knowledgeable human service
The
Proper Approach
Organisations
need to appreciate that outsourcing is often best managed by having a
dedicated position. The role is sometimes described as the Chief Resource
Officer who, ideally, is strategically placed within the organisation.
This is the optimum - organisations that do not have such a position will,
nevertheless, need to establish the outsourcing arrangement that suits
them best.
This
Involves:
Engaging
people with high level and broad ranging skills and capabilities to actively
manage the entire process of outsourcing.
Skills Include:
- Contracting
and contract management expertise, ability to manage multiple projects
simultaneously, negotiation, problem solving,conflict resolution skills,
lateral thinking ability and financial and leadership capabilities.
- Assessing
and determining the nature and extent of the service to be outsourced.
- Determining
the contracting style ie whether the specification is to be performance-based
with emphasis on outcomes.
- Bundling
of services in a logical manner to optimise critical areas and efficiencies.
- Defining
clear processes for evaluation and selection.
- Selecting
the optimum process to attract quality bidders.
- Negotiating
with integrity and professionalism.
- Managing
the relationships and overall risk/reward trade-off and rewards needs.
Developing a
shared vision for the service. This is more likely to happen when the two
parties have the right 'chemistry' as the basis for a relationship. This
takes time and effort which organisations need to see as an important investment.
Allowing for continuous improvement by accommodating a dynamic relationship.
This includes both small enhancements that can be achieved along the way
without costly contract variations and major projects involving significant
changes and improvements.
Conclusion:
Once a service
is outsourced, organisations need to develop and maintain a high level
and professional management of the particular outsourced service. The
professional management will include anticipating and minimising problems
that may arise, and correcting and rectifying problems that occur.
Outsourcing is the clearest manifestation of the creation of a virtual
organisation. To optimise the potential benefits, all activities need
to be in harmony and be strategically aligned
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