Outsourcing Consultancy

What is Outsourcing?

Outsourcing involves the transfer of a service, that one could easily do oneself, to a third party, which then takes responsibility for its delivery, in place of the person that previously performed it. Outsourcing is part of every day life. At its most basic, the transfer of bread-making to a baker or car maintenance to a garage are examples of day to day outsourcing. For most people however, outsourcing is best illustrated by the transfer, on the part of multinational corporations, of their non core operations, leaving them free to focus on their core disciplines.

Why Outsource?

Companies’ reasons for outsourcing vary enormously. For some, outsourcing is a tool for cost control. For others it is an opportunity to transfer of risk and utilise specialist external expertise. For many it is a matter of passing a non core function to a specialist organisation, thus achieving an enhanced service, economies of scale and improved risk management. However, for this to work such relationships have to be carefully implemented, monitored and managed.

Who Outsources?

Most organisations and individuals outsource.

What gets Outsourced?

Whilst it is normally non core functions that are outsourced, it has been known for organisations to outsource core functions as part of a reduced head count policy. In some cases it may only be a small part of a particular department’s work that is transferred, such as the bulk processing of invoices or the second level support of a three tier IT helpdesk. Few functions are immune.

Where is it Outsourced?

Services that are outsourced may be transferred to a number of locations. Those locations will depend on a number of factors, ranging from cost to regulatory compliance, to client requirements and expectations. Outsourcing to organisations in the UK is still very common, even where the main objective is a reduction in cost. However, an increasing amount of outsourcing involves the transfer of services overseas or “off-shoring”. That is not to say that once a service has been transferred overseas it may not subsequently be brought back to the UK. It could also be transferred from one overseas location to another as global forces change. At present most off-shoring involves the transfer of services to India and China, although, due to rising costs of living in those countries, work outsourced to India for example may now involve secondary outsourcing to the cheaper North African region.

Outsourcing Consultancy Services offered by Schrodinger Consulting include:

Informed advice and guidance through the outsourcing maze.
An introduction to the commercial issues associated with commercial outsourcing.
Development of tailored terms and conditions to cover specific outsourcing relationships.
The preparation of tailored Invitation to Tender (ITT) Documentation.
The negotiation of outsourcing deals on a client's behalf and general management consultancy.