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Whitepaper download - Out-tasking
Outsourcing vs.Out-tasking: Practical Advice by Roger Davies, Peter Brudenall & Jon Aries. December 2008
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Executive summary:
Why should I consider out-tasking right now in my business?
The economic outlook is bleak: rising fuel prices, domestic inflation, currency fluctuations and falling capital investment. As business struggles to re-adjust and cut operating costs outsourcing (and in particular offshore outsourcing) has perhaps predictably been cited as part of the solution. Indeed, it is clear that companies who already source externally for either business processing or IT want to increase the scale or scope of their agreements. Additionally, companies currently not using offshore outsourcing seem more likely to consider doing so given both the relative ease afforded by improved and lower cost communication networks; and the external pressures exerted by a genuinely flattening and inter-connected global economy. So with offshoring back in fashion surely we can expect more global outsourcing industry mega-deals? Perhaps, but certainly not exclusively.
In 2007, practically all the outsourcing advisory firms predicted that the £ billions worth of contracts up for renewal in the next year would be broken up from big, high-value outsourcing deals and distributed among smaller suppliers. In fact, an earlier study by Gartner highlighted initial traces of a falling number of megadeals in 2006. But why are megadeals fading away when global outsourcing demands are at an all-time high? Poor performance of many large-scale outsourcing agreements is one reason. Another is that the new wave offshoring includes Small & Medium-sized Enterprises (SME) who do not have the scale to outsource that much work and cannot fund the high upfront costs or absorb the disruption to business as usual often associated with traditional outsourcing deals.
These reasons and others explored in this whitepaper are out-tasking, is attracting serious interest as an alternative or complement to traditional outsourcing. Out-tasking, a quick and effective cost-saving activity is where easily defined and measurable activities or processes are contracted out whilst the main function is kept in-house. Instead of divesting their back-office functions as a whole, companies’ contract out in an incremental and manageable way. Out-tasking helps cut costs quickly without loss of control or high set-up costs.
This whitepaper, written by authors with many years industry experience explores the real motivations and concerns faced by executives tasked with finding alternative, flexible and cost-effective ways of running their business operations. It aims to give pragmatic insight to out-tasking.
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