Transcript Outsourcing Services
The future shape of business is being redefined through outsourcing
What is Outsourcing
Outsourcing means finding better ways of doing business.
It helps companies to look to the value chain for
high leverage areas
and helps them to
better utilise
their
resources
to exploit these areas. Outsourcing is a means to achieve competitive advantage by focusing on core competencies.
What to Outsource
CRM (Customer Relationship Management)
SCM (Supply Chain Management)
Back Office
–
Payroll
– – –
Billing Accounting Investor Relationship Management – Share Transfer & Fixed Deposit Accounting
Why Outsource
Use the specialised services and skills of the Outsourcing partner
Better utilise internal resources
Increased responsiveness to customer needs
Decrease financial risks by reducing capital investments
In-house Vs. Outsourcing – Key Questions
Speed and cost for transformation – how long will it take to transform the function or process internally vs. externally?
Management attention – should management devote a significant amount of time and energy to this process?
Talent – are we putting our best people, with the appropriate skill sets, into these processes?
In-house Vs. Outsourcing – Key Questions
Capital – does the function win (or lose) the war for capital within the corporation?
Track record – does the function have a track record for meeting or beating its commitments?
Accountability accountable?
– if the transformation is NOT successful, who will be held Culture – does the function have the right culture to operate the future state model?
Motivators for Outsourcing
The followings are the major reasons given for taking outsourcing decisions
Difficulty of hiring skilled professionals (28.8 percent), Lack of in-house skills to deliver the desired levels of quality (20.3 percent), Budgetary considerations (13.6 percent), Mandate from the management (11.9 percent).
Risks in Outsourcing
Information Security
Loss of control
Compromising confidentiality
Monitoring costs
Minimising Risks
Choose a service provider that has a proven track record - talk to customers of the service provider Know your requirements, both current and future, and put them in the contract Stay away from variable costs in the contract like communication, travel etc.
Treat the outsourced relationship as a partnership and the employees and extended team members
Minimizing Risks
Choose a service provider who provides you with value adds, services or products that may not be in the contract.
Develop a strong partnership with the vendor
Secure a confidentiality agreement
Simplify the interface between the two organisations
Focus communications
The Key Layers in Outsourcing
Strategy Process Design Operations Systems
The Key Layers in Outsourcing
Retain in-house
Strategy - governance, policy setting, decision-making and direction Process Design - design, and “consultative” activities The Strategy and Process Design layers are typically retained with the management to ensure overall control of the activity
The Key Layers in Outsourcing
Outsource
Operations - administration, clerical activities and day-to-day execution System - technology, infrastructure and transactional processing It is these two bottom layers combined - Systems and Administration layers that are most appropriate for Business Process Outsourcing (BPO)
Benefits
Service
Industry knowledge and expertise of the vendor
Quick response time Function Difficult to Manage or Out of Control They are great in a pinch – ability to increase resources whenever required
Benefits
Costs
Pay only for what you need
The infrastructure is of the vendor
Economies of scale with the vendor Reduce or Control Operating Costs Outsourcing is a cost-effective way to increase your resources.
Why Us
Quality and Confidentiality
Highest levels of service
– –
Accuracy Investor Relationship Management Technology Edge
– –
Real time enquiry/feedback management Web interface for better communication Complete confidentiality and reliability of information Dedicated support systems for investor interface with real time information