What are common examples of sucessfull outsourcing?
Some examples are listed below – this list is not complete • Organization size advantage faces the threat of growing global competition; small, focused players are able to change their cost structure quickly. Retaining all non-core skills in-house is neither effective nor efficient. • Product and service cycle times are shorter – competitive pressures demand timely, appropriate responses. If organizations are focused on non-core issues, responses may be neither timely nor appropriate. • Improvements in financial and operating performance are essential for success. • Direction of outsourcing tends to evolve starting with activities moving to functions followed by processes • Repetitive, routine tasks • Temporary tasks or those that are performed at certain times during the year • Tasks that are cheaper to outsource than doing them in-house • Shifting services to a vendor makes operating costs less fixed and more variable vs.
