Profit Through Change

Outsourcing Management

What can be Outsourced?

The elements and services of a business that can be outsourced are far too numerous to list exhaustively, but can be categorised as being either:

  • Mission critical functions
    Manufacturing processes, product development, maintenance, etc
  • Support functions
    HR, Legal services, Logistics, IT support, etc
  • Tertiary activities
    Cleaning, parcel delivery, plant-watering and rubbish collection

However, in summary, with vision, planning and organisation, almost any part of an organisation can be outsourced if required. Some of the key question's to ask therefore are:

  • What are the benefits/disadvantages of outsourcing a particular function ?
  • What is the total and true cost including aspects like personnel costs, legal fees, OPEX and CAPEX changes, etc ?
  • What is the impact likely to be on the overall business ?
  • Is there someone who could undertake the process better ?
  • Can I revert back "in-house" if it all goes wrong ?

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