Why Should We Outsource?

Many reasons exist to engage in outsourcing. When to outsource will depend on the severity of existing problems or challenges, as well as the ready availability of an outsourced solution.

Taking information technology (IT) as an example, there could be one or more of the following circumstances favoring an outsourcing solution:

• CEO and/or CFO are being "held hostage" by a non-responsive IT department.
• Compared to competitors, the enterprise is not keeping pace with changes in technology.
• High inventory costs.
• High personnel turnover.
• IT budget is not predictable or affordable.
• IT organization does not have a strong grasp of company's objectives, critical success factors and/or bottom line.
• IT organization does not provide industry best practices, processes and/or services to internal/external customers.
• IT strategy not consistent with business strategy.
• Loss of senior IT management.
• Missed delivery dates.
• Multi-IT vendor environment/data centers.
• Need to focus on core business(es),.
• Need to increase earnings, growth, ROI, and/or shareholder value.
• No business continuity/recovery plan.
• No documented, measurable, and/or repeatable IT strategy.
• Not ready for eBusiness (e.g., eCommerce, eProcurement),.
• Poort internal and/or external customer service.
• Post-M&A - redundant or mismatched IT infrastructure.
• Runaway IT projects.

Similar considerations might apply to other business processes eligible for outsourcing.

Additional Resources

Benefits of Outsourcing

When not to Outsource