Outsourcing: the success keys

Extract

[...] Steps There is a general approach to outsource any service in a company. This process comprises 8 stages which are: • Identifying the activities that can be outsourced: this involves listing the services present in the company and listing those that we want to outsource; • The definition of the company's objectives: concerning these services, it is necessary to define the goals of each outsourcing activity and sort them according to their importance; • Economic analysis: since outsourcing serves to reduce costs, it is, therefore, necessary to know the costs of each service that will serve as the maximum budget ceiling for finding suppliers; • The drafting of clear and precise specifications: these specifications must contain information on the missions that the external service provider must carry out; • The choice of the external service provider: two factors of choice are present in this stage. [...]

[...] In other words, it is the action by which a company calls an external entity to perform a specific task or range of tasks. The link between the two parties is therefore not employer- employee but buyer-seller. Therefore, it is not formalised by an employment contract but rather a commercial contract. B. What do we outsource? As we've stated, the reason businesses (or at least most businesses) use outsourcing is to relieve business burdens. Therefore, the activities that will be outsourced are those that will be cheaper if an external company is used. [...]

[...] Tips and Tricks A. Things to do In this part, we will present the tips that will allow you to succeed in your outsourcing exercise. • The company must establish a roadmap to define its needs, objectives, conditions and priorities; • It must determine its responsibilities as well as those of the chosen provider. It is possible to draw inspiration from standard service provider contracts; • The ordering party must choose his service providers carefully by establishing a real stable relationship of trust. [...]

[...] Outsourcing: the success keys Outsourcing has become one of the most strategic tools commonly used in the corporate world. Being a fairly new strategy, many do not yet know how to apply it effectively. Indeed, most companies using this tool have only seen the tip of the iceberg and venture into an area they do not know and do not excel in. The problem we ask ourselves is, therefore, the following: ‘To what extent is the outsourcing of any function successful?' ‘The objective of this work is, therefore, to provide as much information as possible on outsourcing and to present ‘tips,' that will allow it to be successful without any problem, that is to say, the keys to the success of outsourcing. [...]

[...] Indeed, a company can outsource service to enable them to: • Focus on the core functions of the business; • Have a more competent and expert team in the field of activity; • Increase their productivity; • Have greater control over the team because we have more leverage (deadlines and quality) over an external supplier than over an internal unit; • Make it easier to stop the collaboration because it is easier to stop using a supplier than to lay off employees; • No longer worry about managing employee absences due to illness, leave and other circumstances. II. Analyses A. Advantages and disadvantages The factors that motivate leaders to resort to outsourcing are also the benefits it provides. [...]