The latest edition of our outsourcing FAQ has been published, and includes the following additional frequently asked questions:
1) What is Outsourcing?
There are a number of definitions, but essentially outsourcing is the passing of service provision or production to another internal or external party.
2) What are the benefits of outsourcing?
The benefits of outsourcing are wide and varied, and tend to be specific to individual situations. However, generally, the following are usaully amongst them:
The ability to concentrate on the businesses own core functions
Delivery of lower costs due to economies of scale
The potential freeing of resources for other purposes and tasts
Higher quality service delivery due to the focus of the supplier
Less dependency upon internal resources
Increased flexibility to meet changing business and commercial conditions
Tighter control of budget
Likelihood of lower ongoing investment required in internal infrastructure
Potential acquisition of innovative ideas
Potential improvement of credibility due to association with superior providers
Potential new market access through the suppliers network
Potential cash influx resulting from transfer of assets to the new provider
Possible lower ongoing internal infrastructure investment required
3) When considering transition issues, what factors broadly need to be considered?
In identifying the possible transition issues, it is advisable to concentrate on the factors of production and how the internal unit fits into the organization:
People
Facilities (space and related services)
Equipment
Hardware/software
Third-party contracts
Processes, functions, and activities, processing inputs and producing outputs
