Simplifying and Demystifying Outsourcing
Outsourcing is defined as the transfer of a process to another company and is not a new business strategy. Outsourcing is about letting experts do what they do best, allowing the business to focus on its core strengths. The most popular outsourced functions are human resources outsourcing (HRO), information technology outsourcing (ITO), business security outsourcing (BSO), technical and management training outsourcing (TMO), finance and accounting outsourcing (FAO) and business coaching outsourcing (BCO).
The advantages are multidimensional and are clear. Outsourcing will likely improve the quality of service since subject matter experts provide their services using specialized talent, systems, processes and knowledge. Outsourcing is about acquiring high-quality services that are predictable and reliable and by leveraging the law of large numbers and as a risk mitigation strategy while getting better value for dollars invested.
Access to technical and service innovation is another outsourcing benefit. Outsource providers have the time, talent, industry expertise and investments to maintain leading edge services. Organizations that outsource, leverage these innovations to grow sustainable enterprise value.
Due Diligence is a key factor for effective outsourcing. The process used by TLS for its customers are:
1- Committed Leadership Support;
2- Outsourcing as a strategy;
3- Decision on what to outsource;
4- Cultural alignment;
5- Protecting intellectual property;
6- Systems security to mitigate cyber attacks;
7- Define Service Level Agreements (SLA) and management and governance practices;
8- Provider selection;
9- Negotiating appropriate service contracts allowing for flexibility;
10- Treat outsourcing provider as a trusted advisor with the same goal of growing enterprise value.
Retain TLS to assist you in selecting the functions to outsource, in defining the statement of work, the RFP, in defining the services level agreement (SLA) and in the selection of a service provider that will best fit your strategic business objectives and Culture.