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Strategic Outsourcing Assessment
Outsourcing initiatives have evolved
from short-term tactical projects focused on cost savings
to executive-level business strategies that enable companies
to gain and sustain revenues and profits in the competitive
global marketplace. In this first newsletter of a four-part
series, ZSL, an IT outsourcing solution provider, details
the process necessary for organizations to conduct a
Strategic Outsourcing Assessment (SOA).
Why Assess?
The SOA process can be applied to
all IT-centric outsourcing: infrastructure, applications,
and business processes (e.g., Payroll, AP/AR, HR). The
rationale for conducting the assessment is first confirmed
by determining why an organization believes it wants
to outsource. The organization must then identify what
can and cannot be outsourced. The assessment process
puts in place the framework for how to approach outsourcing
and provides a checklist to evaluate the solution providers.
SOA Process
- The business process owners or executives define
company strategies and goals.
- Define the functions, which are core and non-core
to your business.
- Assess the operational and financial risk for each
function and assign the mass value based on risk level.
- Mapping of the internal resources’ expertise,
capacity utilization to align the IT with business
goals.
- Compute the mass value and qualify the functions
with ‘Keep it’, ‘Experiment it’,
’Outsource it’ labels with suitable proximity
factor - Onsite, Offsite, Near shore or Offshore.
Assessment Cycle
ZSL offers a complementary Strategic
Outsourcing Assessment (SOA), resulting in a highly
detailed step-by-step document, or “roadmap”,
which includes:
- High-level overview of core and non-core business
applications/processes
- Evaluation of outsourcing readiness
- Itemized gap analysis of systems/process infrastructure,
complete with roadmap and recommendations
- Summary of optional engagement models with projected
impact analysis
- Summary of short term and long term recommendations
- Detailed solution providers evaluation checklist
- Recommended jump-start pilot outsourcing initiative
to build buy-in and momentum.
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