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Evaluation of Outsourcing as a Strategy 



You have reached this page, because you have decided that your organisation may want to benefit from outsourcing and offshoring.

Your answers to the following questions will allow our high level assessment tool to determine your readiness for outsourcing and enable you to determine at a high level if outsourcing and in particular offshoring may be an appropriate strategy for your organisation.



Q1. What do you believe outsourcing and offshoring will allow your company to do and what will that mean for your business? - select 1 or 2 answers only.

Survive
Increase revenues
Reduce costs
Increase profitability
Lower costs of customer acquisition
Lower costs of customer retention
Enable us to target different markets and customers
Keep our existing customers happy
Improve efficiencies
Improve cash-flow
Extend our business operation (hours of operation etc)
Something else not identified above


Q2. What would you say is your firm's leading core competence and competitive advantage?



Q3. What would be your top 3 drivers for outsourcing / offshoring? - tick up to three that apply.

Strategic
Transform the business
Focus on our core competences
Financial
Lower costs of operation
Convert fixed costs to variable costs
Operational
Provide better flexibility
Achieve greater productivity
Increase capacity
Increase quality
HR related
Access specialist skills and experience
Help re-align internal culture
Technology / Innovation related
Benefit from vendor investments and innovation
Enable business process re-engineering
None of the above options


Q4. What type of function / process are you looking to Outsource?



Q5. Where would you want the outsourcing activity to be based?



Q6. What would the value of the outsourced activity be, based on current costs per annum?



Q7. How would you rate the following statements for your company?
1 = Stongly Disagree, 2 = Disagree, 3 = Ambivalent, 4 = Agree, 5 = Strongly Agree

We have previous experience of outsourcing

We have sufficient internal project management capability

We have sufficient skills in developing and managing Service Level Agreements (SLAs)

We have a good track record in contract management

We have significant experience in governance

We have significant experience working across cultures

We have seen that employee morale gets affected severely from any change

We have real concerns about data protection and theft of our IPR

It is likely that there will be an adverse reaction from our employees and stakeholders over news that we are offshoring


Q8. How would you rate the following statements for your company?
1 = Stongly Disagree, 2 = Disagree, 3 = Ambivalent, 4 = Agree, 5 = Strongly Agree

We have very good communications infrastructure

We have good IT systems and infrastructure

We have board level commitment for outsourcing

We have good internal systems for process and service measurement

We have good internal stakeholder alignment (Finance, HR, operations, Marketing etc) in terms of using outsourcing as a strategy


Q9. How would you rate the following statements for your company?
1 = Stongly Disagree, 2 = Disagree, 3 = Ambivalent, 4 = Agree, 5 = Strongly Agree

We have very limited availability of seed money.

We currently have sufficient internal resources available to drive the change in a timely fashion.

We believe the internal organisation can absorb this change right now.

It is very difficult to measure the performance of the process.

There are some company specific skills which will be necessary to adequately perform this function.

I would say the function is specialised and that only one or two vendors can perform it with the necessary competence.

Necessary work manuals and operating procedures exist and are right up to date.

The performance of the process may well be affected to a great extent when there is employee turnover.

It takes a relatively long time to train employees to execute the process effectively.

The nature of the process means that personnel executing this process have to be in constant touch with personnel executing other linked processes.

Changes to this process will in all likelihood lead to many changes in several of the linked processes.

Performing this process is time-sensitive to performing other related processes.


Q10. Finally, realistically, in what timeframe would you expect to achieve payback from your outsourcing initiative?



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End of Assessment Questions. Send to Evaluate >>

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