Outsource What Works... | MyVenturePad

This sounds like a contradiction.

Why on earth would you want to outsource something that is already working, rather than outsourcing something that is not working well and driving you mad?

Why outsourcing?

Outsourcing is designed in the main to do the following;

1. To allow a business to focus on its core functions.
2. To reduce costs (direct or indirect).
3. To create ?flex? i.e. to enhance the team when there is a peak in demand.

By its nature, a successful outsource can only be achieved when the business understands what makes up one of more of the above and is in a position to measure same.

1. Outsourcing an element of the business that does not appear to be core but is then determined to be core. If in doubt ? wait until you are sure.
2. If there is not a fundamental understanding of the costs of delivery of a function, then it should not be outsourced. How will determine if you are saving money during the exercise?
3. If you are unclear of your capacity requirements in the future, you should not outsource to create the flex. There is always a minimum charge in an outsourcing agreement that allow the outsource provider to cover their costs and engage correctly. You may end up spending more than you need if you have not correctly assessed your capacity needs.

Outsourcing is a great way of allowing business to develop in an effective and controlled manner. But outsourcing should be approached with with open eyes and an awareness of what the engagement is going to mean to the business.

Outsourcing won?t work if it?s been done out of despair of a poorly performing function or if no measurements are in place for the function being looked at.

What are your thoughts? Have you outsourced elements of your business and regretted it? What worked, what didn?t?

Photo: joachimtraun

Source: http://myventurepad.com/barneyausten/79038/outsource-what-works

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