© 2004 Sixhills Consulting Perspectives on Technology OutsourcingAn aggressive decision framework changes the burden of proof in outsourcing discussions – if a function is in principle outsourceable, it would be evaluated for outsourcing, unless it could be demonstrated that direct control was critical to competitivenessRe-engineer In-HouseRe-engineer In-HouseRe-engineer In-HouseNoYesNoYesOutsourceCore Competenceand ControlIs direct control of the function crucial to competitiveness? (If we could save 50% by outsourcing, would we do it?)• Is it (or do we desire it to be) a core competence of the company?• Would indirect control erode or jeopardise this competence?• Would indirect control create significant unmanageable risk?OpportunityYesOutsourceabilityIs it possible to outsource the function?• Has the function been defined at the right level?• Can the relevant infrastructure be detached?• Can sufficiently precise specifications be created?• Do qualified vendors exist?NoOutsourcing Decision ScreensIs there an opportunity to improve flexibility, quality, service and/or reduce cost by outsourcing?• Business Case• RFP• Negotiations• Deal structureP7
< Page 7 | Page 9 >