* Reduce and control operating costs
* Improve company focus
* Gain access to world-class capabilities
* Free up internal resources for other purposes
* Obtain resources not available internally
* Accelerate re-engineering benefits
* Deal with a function that is difficult to manage/out of control
* Make capital funds available
* Share risks
* Obtain a cash infusion
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Sunday, June 24, 2012
What is co-sourcing?
This describes a relationship where the interaction between the supplier and the host organization is even more intimate than in normal outsourcing. This means that the host organization supplies staff and managers to the outsourcing deal, not as transferred staff but because of their specialist knowledge. Co-sourcing means both organizations having responsibility for the supply of resources to meet the objective. There is, however, some risk since there may be no redress if objectives are not met.
Saturday, June 23, 2012
The market value of outsourcing
More than 90 percent of US companies outsource on or more activities. According to the IDC - the international research organization - worldwide spending on outsourcing reached $99 Billion in 1998.
IDC discovered that, the majority of worldwide spending on outsourcing occurs in the US. In 1998, US organizations spent $51.5 billion on outsourcing, almost 52 percent of global outsourcing expenditure.
The 1999 Outsourcing World Summit confirmed that the fastest growing trends for worldwide outsourcing were:
* human resource management
* media management
* information technology
* customer service
* marketing
Most large companies tend to use other organizations for some services, which may include IT, factoring, debt collection, payroll, claims processing, estate and property maintenance, temporary and contract employees, public relations, cleaning and catering. These arrangements may be informal or formal deals incorporating contracts or service level agreements.
IDC discovered that, the majority of worldwide spending on outsourcing occurs in the US. In 1998, US organizations spent $51.5 billion on outsourcing, almost 52 percent of global outsourcing expenditure.
The 1999 Outsourcing World Summit confirmed that the fastest growing trends for worldwide outsourcing were:
* human resource management
* media management
* information technology
* customer service
* marketing
Most large companies tend to use other organizations for some services, which may include IT, factoring, debt collection, payroll, claims processing, estate and property maintenance, temporary and contract employees, public relations, cleaning and catering. These arrangements may be informal or formal deals incorporating contracts or service level agreements.
Outsourcing make businesses more competitive
Companies are interested in outsourcing because it helps them to be more competitive and has the enormous potential to introduce a remarkable level of streamlining and extra efficiency in industry and commerce. It also enables organizations to attain world-class performance.
Strategic Outsourcing
The adoption of a strategic perspective on outsourcing is regarded as one of the most useful and important business methodologies, allowing organizations the world over the opportunity to liberate their full potential for profitability, efficiency and cost effective operation and ensuring maximum flexibility in terms of retaining and broadening customer franchise.
This strategic approach plays a key role in private and public sectors in developed countries and increasingly in many developing countries like South Africa.
Too many outsourcing initiatives suffer from bad motives from the start and even those who do have good motives suffer from a lack of proper planning. Even those that are planned properly can end up using the wrong service provider and even those that make none of these mistakes are usually badly managed or badly monitored. Billions of allocated funds are wasted each year because outsourcing is not handled properly.
This strategic approach plays a key role in private and public sectors in developed countries and increasingly in many developing countries like South Africa.
Too many outsourcing initiatives suffer from bad motives from the start and even those who do have good motives suffer from a lack of proper planning. Even those that are planned properly can end up using the wrong service provider and even those that make none of these mistakes are usually badly managed or badly monitored. Billions of allocated funds are wasted each year because outsourcing is not handled properly.
Creating right relationships with customers
Our owner sees relationship cultivation from the perspective of a master craftsman, so that the possibilities take her and her group to a level beyond simple jargon masking the mediocre. Customer relationships can be strengthened by communicating skillfully and respectfully checking in on progress, performance and expectations regularly; delivering quality services that match the client's expectations; following through on promises or being upfront about why we can't; providing excellent response when things go wrong and being thoughtful about ways to increase the value of our services to the client without compromising the bottom line.
We focus on respectful interactions and mutually beneficial experiences in creating and maintaining these right relationships with customers. Due to a lack of pressure to view customers as mere commodities the enterprise is focused on deep connection as a pathway to qualitative growth and success.
We focus on respectful interactions and mutually beneficial experiences in creating and maintaining these right relationships with customers. Due to a lack of pressure to view customers as mere commodities the enterprise is focused on deep connection as a pathway to qualitative growth and success.
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