What are the key criteria for determining which functions and which processes should be outsourced?
Outsourcing is a complex decision driven by many different potential motivations, and there are many different outsourcing solutions with the range increasing as outsourcing becomes more sophisticated. There are very few activities that cannot be outsourced but there is no simple magic formula or equation for deciding whether and what to outsource. The conventional wisdom that outsourcing is appropriate for non-core, support activities-only is outdated. Managers take strategic decisions around making the most of their businesss core competencies leveraging those privileged assets that enable them to provide unique value to their customers. They now seriously consider outsourcing anything in which they do not have, or do not want to have, a unique or privileged position; and which a third-party supplier or partner could provide more cheaply, faster or better. Outsourcing a problem is acceptable; outsourcing for rapid growth or development is valid; outsourcing to change the business sho
