In today’s competitive world, it is essential to identifying the business processes that can be outsourced. A company should always follow the methodical approach for evaluating each business process and identifying the ones which can be outsourced. By following the methodical approach enforced by overall corporate strategy, company can ensure that would be a consistent evaluation method which avoids erratic decisions if left to teams and individuals to decide.
The key principle is simple, the process of determining WHAT to move offshore or outsource, one must consider all and any parts of the value chain if it is a non-core business process and can be done faster, cheaper, etc. by an external partner. To help the customer, here is one method customers can use to have a clear view on the process candidates to move offshore. We are aware that there may be other variants of this method, so one should adapt this method before adopting it. And they are like,
Most of the times even the customers will not have the overall, documented perspective of their own business processes. It is critical to capture and consolidate business processes so that customer’s key stakeholders understand the processes. One should look at the common processes in the same industry, which are often candidates for offshore model. Review your processes and make the first selection of candidates based on if the process is core to the company or not. Core business functions that enable the competitive advantage for the company so they may not be good candidates. If one is outsourcing its business processes, it should be able to measure the results. Sometimes the business process is not big enough to deliver clearly measurable benefits.
In every organization, there are business processes that are subject to internal corporate politics and emotions, so preventing them to move them offshore. Sometimes business processes are hardly based on the physical infrastructure, which cannot be moved to ensure compliance. The business process benchmarking is going to leave a reference point, which measures and manage the outsourcing engagement, contracts, SLAs and relationships with outsourcing partners.
One may consider complexity, criticality to business continuity, risks involved, benefits to move offshore, and penalties not to move offshore.
