Keys to successful outsourcing

Outsourcing is one of the changes that has most affected company operations in recent years. At first limited to production, outsourcing now concerns all facets of a company’s business, such as logistics, IT, customer relations, human resources, finance, sales, etc. In addition, outsourcing initially concerned only the provision of specific services, but has now moved toward the complete delegation of entire functions. We are now seeing the emergence of "virtual" companies that serve merely as structures to orchestrate outsourced services.

Outsourcing has many advantages: it can help reduce costs, turn fixed expenses into variable costs, enable the company to focus on its core business, give the company an opportunity to access the best expertise in every domain, etc. Yet, the resulting transformation is far from trivial. Poorly managed, these changes may disrupt company operations and demoralize employees. Worse yet, the company may discover too late that it no longer masters a critical function and has become excessively dependent on an underperforming vendor.

The publications that we have selected analyze best practices that can help companies avoid such unpleasant surprises:

– Do not overestimate the potential benefits: before making any decision, carefully identify the corresponding hidden risks and costs.

– Be aware that the transition phase is critical: make sure that the transition is well prepared and receives ongoing support.

– Maintain the skills required to judge the work of outsourcing partners and take things back into hand, if need be.