Over the past few weeks, we have been discussing how procurement functions can best position themselves to contribute to outsourcing initiatives within their organizations. See previous posts here:
- Procurement’s View of Outsourcing (Part 1)
- Procurement’s View of Outsourcing (Part 2)
- Procurement’s View of Outsourcing (Part 3)
We will move on now to some recommendations around the execution of outsourcing projects, divided into three sections – strategy, implementation, and ongoing delivery.
We can’t hope to cover every aspect of outsourcing good practice here, and for many experienced procurement professionals, some of what follows may appear somewhat obvious. But we hope even readers in that category will find something of value – and I can honestly say that after 30 years around the procurement industry, I have seen even the most basic errors outlined here made by organizations engaged in outsourcing projects.
Make sure you have a clear strategy for outsourcing
There are a number of valid reasons why organizations might choose to outsource a function, process, or business activity. Cost savings, improved service, access to external expertise, or entrance into new markets are all possible reasons.
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