Best Candidates #5: Select work processes that will transform the organization
Selecting best candidates for outsourcing based on where outside providers can provide the most leverage to transform the company represents a more recent approach to using outsourcing. Managers are increasingly looking at the new skills and processes that a world-class outsourcing provider can offer. They are also envisioning their organization's highest goals achieved where internal limitations and constraints previously stood in the way. Mission Foods is a perfect example of a firm reaching for new goals with the assistance of an outsourcing provider. Mission Foods is reaching a national and international market with its products through a partnership with Ryder Logistics.
Best Candidates #6: Select work processes that are discrete and separable
Candidate areas for outsourcing should include activities that are discrete and that are separable parts of the firm. These are areas where an outside organization can manage the process with their own staff and where a great deal of intertwined activities do not take place. For example, a discrete candidate for outsourcing might be a hospital's transcription services. The work of the provider is separate and discrete—it may be time sensitive and important—but as a process it is an independent work activity. By outsourcing activities that are easier to pull out of an organizations' workflow, a firm can use more of its time working on activities that require a continuous interaction, and that are more central to the company's core competencies.
Concluding Tips for Selecting Best Candidates for Outsourcing
· Leverage internal skills and knowledge sets
· Outsource areas where you are weakest
· Look for breakthrough opportunities
· The marketplace is key
· Watch for internal support or resistance
· Create early success