Out-sourcing Programs
What are your core competencies and what should they be? What company operations produce your competitive advantage and what non-core functions could you benefit from outsourcing?
The move to outsourcing and off-shoring business processes, IT services, or portions of your supply chain can be complex. If not carefully managed, such programs could fail to achieve hoped for benefits, or even cripple a successful company and jeopardize its core business. However, cost reductions of 30 to 60 percent over comparable in-sourced operations hold the promise of not only preserving or enhancing profit margins, but may well provide the only way of maintaining competitive pricing.
Some of the difficulties that can be encountered in moving to take advantage of outsource economies, and with which we can assist, include the following:
- Selecting the right services model for a particular business
- Selecting the optimum locale for an outsource service operation
- Selecting the right services partner or alliance, optimum acquisition candidate, or developing the capability to launch your own operation
- Negotiating the best commercial terms and appropriate service level agreements with your outsource services vendor
- Managing a remote service capability in real-time and properly integrating its operations and services with your operations
- Deciding what operations, projects, services, and resources to move to an outsource provider, in what priority order, and how quickly to move them, while continuing to assure continuity of business and service levels to customers
- Containing the investment required to establish an outsourced capability at a level that assures a return on investment at a reasonable level and within an acceptable period of time
Fortunately, the HBV team has significant first-hand experience in building and managing successful vendor relationships in on-shore, near-shore and offshore locations. We maintain close relationships with leading regional and global service providers. These relationships built and nurtured over an extended period of time are available to our clients, providing to them a portfolio of proven, preferred providers. Additionally, our experience in successfully managing such relationships assures that we can help our clients avoid potential pitfalls and obtain the anticipated benefits of outsourcing.