ARTICLE: NEVER OUTSOURCE YOUR USP, ONE OF OUR EXPERT TIPS TO MAXIMISE VALUE FROM OUTSOURCING

THE OUTSOURCING MARKET IS WORTH OVER A TRILLON POUNDS PER ANNUM AND GROWING AT NEARLY 10% PER ANNUM SO IS IT A GURANTEED WINNER?

NO! But with the right help it can be a great tool for solving your challenges

 

   1. DON’T OUTSOURCE YOUR USP 

 

If something gives you a unique edge over your competitors, don’t outsource it. Invest in nurturing this unique capability to make it really sing for customers.

Outsourcers mimic the best of the knowledge gained from clients and apply it universally, this is one of the key benefits they offer. Don’t let that differentiator become knowledge to transfer.

 

   2. KNOW THE PROBLEM

Muddled goals confuse prospective partners. If you don’t know what represents success what chance do others have? Prospective suppliers regularly pitch outsourcing as the complete solution to solve cost, service, resilience and flexibility challenges and whilst it can improve all of these drivers being clear where your priorities lie is critical.

Your priorities need to be weaved into every conversation, right from engagement, into the contracting process and ultimately oversight of the ongoing performance.

 

   3. KNOW THE REAL COST 

When you’re assessing bids for your project, keep the bigger picture in mind. The cheapest bid is likely to have a more rigid cost base and that means any future changes are likely to come at a new cost. 

Set up flexible contracts from the start to allow for innovation. That way, both companies benefit. The cheapest bid at the outset doesn’t necessarily make for the cheapest project delivered overall. 

 

   4. Be REAlistic

Don’t ignore those warning signs! Delve deep to assess capability and sign up to the reality not the sales pitch. Don’t forget if TUPE applies then it is likely to be the same people executing the work on day one as it is today.

Outsourcing arrangements are complex to unwind and so knowing what to expect from day one is critical. Everyone is set up to fail if we all buy a dream that can’t exist.

 

   5. MICROMANAGEMENT OR TOAL FREEDOM?

 

As a guiding principle if you feel the need to micromanage an arrangement then either you have outsourced the wrong scope or have the wrong partner. Equally been entirely hands off starves your partner of the connection to your business and customers and likely won’t meet your regulatory or business needs.

Our experience tells us that after the deal making interest fades and value leakage starts. The world is constantly changing, and your partnership needs to move with the times. Great oversight will markedly improve a bad deal.

READY TO TAKE YOUR OUTSOURCING TO THE NEXT LEVEL? our outsourcing assessment toolkit CAN help solve your challenges.

Download our FREE Cost Optimisation Framework.

OR TALK TO OUR team.