2. Levels of Outsourcing
Tactical Outsourcing
Strategic Outsourcing
(purchasing e.g.)
Transformational
Specific Problem
(Lack of Fin Resources,
inadequate managerial
Desire to reduce headcount
Corporate restructuring
Immediate cost savings
Eliminate need for future investment
Cash Infusion by sale of assets
Relives burden of staffing
Contract
Broader control by
focusing on core areas
And giving operation to vendor
Redefining the business-Innovation
That outside specialists bring to
their customer’s business
3. Scope of Global Sourcing
Finance and
Accounts
Customer Service Transaction Process Human resource Content Development Financial Research
•Transaction Mgt
•Billing
•Taxing
•Financial Risk
•Financial Reprting
Inbound Calles
1. Outbound calls
2. Telemarketing
3. E-Mail
4. Market survey
Claim Processing
Credit Card Processing
loan Processing
Cheuue processing
Collection
Payroll
Benefit admin.
Recruiting Traing
E-Learning
Record Mgt
Animation
Graphics
Data Processing
DSS
Data Mining
Asset Mgt
Market Research
4. Model of successful sourcing
Phases
Strategy Scope of work Scope Implementation
Planning transition
Budgeting & forecasting
Launching Project
Management Completion
Completing contract
Delivering results
support
Maintaining
and supporting
Cost/Budget
Estimation
Managing
partnership
Integrating delivery
Monitoring performance
Negotiating Agreement
Signing of contract
Defining the scope
of work
Decision to Outsource
5. Monitoring The Evolving
Outsourcing Environment
• As outsourcing environment evolves, conflicting
information surfaces and decision becomes complicated.
so companies must be able to identify their reasons for
outsourcing their reasons for outsourcing ,then specify
cost and benefit of the process. the possibilities are,
Needs should be matched between correct service and
correct service supplier, the possibilities are
• Outsourcing VS supplier relationships (internal to
external linking)
• Outsourcing Vs. consulting (to do /how to do)
• Outsourcing Vs. out tasking (broad value added
concept/narrowly defined segment of business i.e.short
contract)
6. Facing the challenges of GO
• Choosing the right partner
• Establishing effective governance of
relationship
• Managing employee transition with
sensitivity
7. Facing the challenges of GO
• Choosing the right partner
• Establishing effective governance of
relationship
• Managing employee transition with
sensitivity
