Sourcing Strategy Drivers: Three Big Questions

By Peter Allen, Partner & Managing Director, TPI

I tend to spend a good amount of my time helping organizations think through whether or not to offshore or outsource some of their business processes. It’s always an invigorating experience to help dig into the opportunities and risks associated with such significant changes to how business functions are organized and delivered. 
Some of the more common questions that arise with regard to sourcing strategy include:

• Should we fix and ship or ship and fix?  This question relates to the adequacy of a process’ operation and whether or not that process should be remediated prior to altering its delivery model.
• Is there significant value in IT-BPO synergy?  This topic is especially sensitive as companies look to gain benefits beyond wage arbitrage. The answer will steer the consideration of internal/external sourcing options and the candidacy of the providers. 
• What is the incentive for a service provider to automate/improve?  This is linked to the lingering issue of “innovation” (or lack thereof) in outsourcing.  It’s more acute for considering the outsourcing option, but I also hear it in the context of moving a process to a captive offshore location.

I’ll be sharing my views on these three strategy-driving questions in coming blog postings, but would welcome your thoughts.  Are there other drivers of strategy that you see of equal emphasis?  Let me know!

Comments

[shubh]

Indeed crucial issues. Zero gap communication, complete knowledge about the project and requirements and dedication to provide bests outsourcing services etc are the key to retain off-shoring customers for longer period.

[payment processing]

Good questions and appropriate answer....
Regards,
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