Successful Outsourcing



Top 10 Reasons Companies Outsource

  1. Reduce and control operating costs
  2. Improve company focus
  3. Gain access to world-class capabilities
  4. Free internal resources for other purposes
  5. Resources are not available internally
  6. Accelerate reengineering benefits
  7. Function difficult to manage/out of control
  8. Make capital funds available
  9. Share risks
  10. Cash infusion

10 Factors for Successful Outsourcing

  1. Understanding company goals and objectives
  2. A strategic vision and plan
  3. Selecting the right vendor
  4. Ongoing management of the relationships
  5. A properly structured contract
  6. Open communication with affected individual/groups
  7. Senior executive support and involvement
  8. Careful attention to personnel issues
  9. Near term financial justification
  10. Use of outside expertise

Top 10 Factors in Vendor Selection

  1. Commitment to quality
  2. Price
  3. References/reputation
  4. Flexible contract terms
  5. Scope of resources
  6. Additional value-added capability
  7. Cultural match
  8. Existing relationship
  9. Location
  10. Other

Source: Survey of Current and Potential Outsourcing End-Users
The Outsourcing Institute Membership, 1998

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