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Competitiveness is the goal of organisations when they decide to outsource part of their operations.

During the 1980s, outsourcing was about tactical and immediate solutions. A decision to outsource specific functions such as payroll or food services was about doing the same for less cost. During the 1990s outsourcing became strategic, with supplier becoming business partners. Now we are seeing a move towards combining domain knowledge and outsourcing expertise to bring innovation, business change and improved competitiveness.

Organisations outsource for three main reasons:

• Cost management: Outsourcing provides an opportunity to reduce your costs and improve cost predictability. It allows organisations to concentrate free up key resources such as management and budgets, to concentrate on core competencies.
• Risk management: Not only does outsourcing transfer the risk of capital expenditure to the service provider it also minimises risks involved in staff-reskilling and recruitment, with outsourcing providing guaranteed access to relevant skills and knowledge.
• Business acceleration: Outsourcing is used to accelerate speed to market, through enabling business transformation, providing access to new skills set, improving the quality of service and allowing organisations to focus on their core business.

If outsourcing is to be a successful strategic decision and bring about real benefits in these three areas, then not only does your partner need to have outsourcing expertise, but also industry knowledge. We have both.

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