Outsourcing

Overview

Outsourcing is the practice of contracting a business function to a third party. Outsourcing often, but not always, involves offshore parties. There are many reasons to consider outsourcing, for example, to:

• Have the business function performed at a higher quality level
• Have the business function performed at lower cost
• Preserve time and attention for the “core work” of the company
• Achieve rapid scalability
• Achieve tax or capital benefits
• Reduce time to market 

Today, many companies outsource one or more business functions, including call centres, manufacturing, distribution and fulfillment, customer service, payroll, accounting, IT, and other functions.

Yet despite the significant benefits, there are substantial risks. Underestimating or failing to plan for these risk scenarios can literally destroy an otherwise healthy business. Yet, managed well, outsourcing has brought considerable competitive advantage to many businesses. 

Topics Covered

• Definitions
• The good news/bad news based on real experiences
• Cost-benefit-risk analysis
• Making the decision
• Choosing an outsourcing partner
• Country and culture considerations
• Negotiating and building alignment
• Contracting and service level agreements
• Making the transition
• What to do when things go wrong
• Breaking trends – crowd sourcing, online outsourcing

Who should attend

This Short Course is ideal for owners, executives, and managers of companies that currently outsource one or more business functions, or who would like to explore the possibility of outsourcing before making a commitment. The course content will be relevant to all types of businesses, including agricultural, manufacturing, and high-tech.

Outcomes

You will learn to assess the benefits and risks of outsourcing for your particular business, and make a yes/no decision about going further into the process toward commitment. At each stage, from cost-benefit-risk analysis through to contract negotiation, implementation, and problem solving, you will be provided with practical tools, case studies and best practices.