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Outsourcing
Outsourcing
Outsourcing
Outsourcing
Outsourcing
Outsourcing
Outsourcing
Outsourcing
Outsourcing
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Outsourcing

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    • 1. Outsourcing www.inboundoutboundmarketing.com
    • 2. What is Outsourcing? • Outsourcing - ▫ “the strategic use of outside resources to perform activities traditionally handled by internal staff and resources” • Why should you opt in to Outsourcing? ▫ Outsourcing offers services that are scalable, secure, and efficient, while improving overall service and reducing costs 2013 IO Marketing – Proprietary and Confidential
    • 3. Why Do Companies Outsource? 2013 IO Marketing – Proprietary and Confidential
    • 4. Reasons for Outsourcing • Traditional role - reaction to problem ▫ Reduction and control of costs ▫ Avoid large capital investment costs ▫ Insufficient resources available • Modern role – business strategy ▫ Allows company to focus on their core competencies ▫ Keeping up with cutting-edge technology ▫ Creating value for the organization and its customers ▫ Building partnerships 2013 IO Marketing – Proprietary and Confidential
    • 5. What Can be Outsourced? • system integration • data network • mainframe data center • voice network, internet/intranet • maintenance/repair • applications development • e-commerce • end-user support system 2013 IO Marketing – Proprietary and Confidential
    • 6. In-House vs Outsourcing • In-House Activity costs, inclusive of labor and overhead Raw materials, inclusive of shipping, storage, handling and overhead Cost of invested capital + Estimated impact of outsourcing on costs and revenue ---------------------------------------------------------------------- Total cost of performing activity in-house • Outsource Proposal for outsourcing Anticipated future pricing adjustments Additional one time costs of outsourcing + Additional on-going costs of outsourcing -------------------------------------------------------------------- Total cost of outsourcing activity
    • 7. When to Outsource • PricewaterhouseCoopers Model Grey Area Not Outsourced In House if Possible Outsource Competitive Strategic Non-Strategic Non-Competitive 2013 IO Marketing – Proprietary and Confidential
    • 8. How to Implement Outsourcing • Program initiation ▫ Opinions and ideas shared to form draft contract • Program implementation ▫ Transferring staff ▫ Service Level Agreement (SLA) ▫ Establish communications between partners ▫ Actual transfer of the service ▫ Establish management procedures • Contract agreement • Contract fulfillment 2013 IO Marketing – Proprietary and Confidential
    • 9. Problems That May Arise From Outsourcing • Possible loss of Control • Increased cash outflow • Confidentiality and security • Selection of supplier • Too dependent on service provider • Loss of staff or moral problems • Time consuming • Provider may not understand business environment • Provider slow to react to changes in strategy 2013 IO Marketing – Proprietary and Confidential

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