Outsourcing & Offshoring

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Outsourcing and offshoring are common types of Transformation initiative. As well as requiring the same level of rigour and professionalism as other transformation activities, these also bring some unique challenges.  So, for example:

• You need to be absolutely clear about your objectives and whether you are setting out to reduce costs, reduce headcount, reduce dependency on contractors, create a scalable resourcing model etc.

• You need to consider wisely what functions and activities are suitable for outsourcing/offshoring. IT support & maintenance functions are a definite and proven ‘sweet spot’; whereas development projects and activities are likely to be much higher risk.

• The number of vendors to be involved in the model is another important consideration. One vendor might render better rates but increases operational risk.

• Outsourcing and offshoring do not mean client abdication. The model must be closely managed and governed from concept and throughout the life of the operation. This means creating new client roles and accountabilities.

• An outsourced or offshored model will definitely mean changes to client staff roles and responsibilities. This will require careful handling supported by HR – reskilling, retraining, staff attrition – this is likely to be a significant change programme for the client teams.

At Transformosys we have deep expertise in these types of initiatives from hands-on involvement in a number of successful outsourcing/offshoring implementations.