To outsource, or not to outsource? We are increasingly faced with this decision whenever there is the consideration of bringing in external solutions or services.
What to source, when, and from whom
Outsourcing is typically used to pursue cost containment, focusing in-house staff on strategic, high payback, activities. Areas commonly considered for outsourcing include:
- Applications development
- Applications support and maintenance
- Infrastructure management
- Remote systems management
- Technology help desk services
- Business process outsourcing
- Client technology product customer service support
- Internal desktop/end-user applications support
We have created some simple worksheets to assist in the "what if" thought process.
Have an opportunity in mind? Fill out our brief questionnaire to see if you're on the right path. This page will refresh after you submit or reset. Of course, you should considered each case on its individual merits.
We also invite you to use these Excel spreadsheets to work on your "what if" scenarios.
- Outsourcing Qualification Scorecard — this is an Excel version of the scorecard above. If your organization disables macros from external sources, use our web version here.
- Outsourcing ROI Worksheet — this is a two-page worksheet estimating staffing and productivity costs to provide some initial feedback on the costs/benefits of an outsourcing opportunity; it's intended to facilitate an initial "back of the envelope" estimate; note that it includes factors such as desktop support, current staff occupancy costs, and so on. It is important to account for all per-staff costs both onsite and offsite.
These worksheets assist with an initial look at risk, costs, and benefits. While cost is often the initial if not primary consideration, there are others. Before we get into strategy, we offer some brief background on outsourcing and avoiding common pitfalls.