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Outsourcing
Does your organisation Have an outsourcing agreement in place or have plans to outsource functions?
Then Outsourcing Optimisation could help you to create better cost control and an increased value from the outsourcing agreement.
Outsourcing optimisation
What characterise a successful outsourcing agreement is how well the cooperation is handled after that the agreement has been signed.
One important reason to outsource is to reduce and control costs. To be able to achieve lower costs there must be a process in place to handle these questions during the ongoing outsourcing agreement.
Our experience show that there is a big potential for cost reductions even after an outsourcing agreement has been signed. With Waagstein Research method for outsourcing optimisation your organisation can enhance a present outsourcing agreement and/or secure a successful new outsourcing solution.
Method
The project is started with an analysis of the costs associated with the outsourcing agreement. The costs are measured and categorised and are then compared to our benchmark data base. If the analysis identifies areas with high costs these are further analysed and checked with the outsourcing supplier.
The next step is to measure the internal cost control associated with the outsourcing agreement. Based on the result the following questions can be answered:
How is the cost risk handled?
- The size risk: What happens if the size of the organisation is changed considerably?
- The structure risk: How are changes in the organisations requirements on the outsourcing agreement due to large changes in the organisations structure handled?
- The technology risk: How does the organisation secure that it will take advantage of the technology improvements made during the outsourcing agreement? (for example cost reduction potential and new functionality)
Which incentives are there to create good cost control?
- What are the incentives in the agreement?
- How are these followed up?
- What are the consequences if the supplier’s performance not is satisfactory?
- Are innovative solution premiered?
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