Mastering Risk Management

DECIDING TO OUTSOURCE

Benefits of outsourcing

When people are asked in surveys what makes a successful outsourcing deal, it is noticeable that cost savings come below features such as:

• ■concentrating management on core activities
• ■achieving higher activity levels and
• ■improving customer service(s).

All of these features help to improve the buyer’s competitive advantage, something which should be a fundamental test of whether to outsource or not. Outsourcing makes business sense by improving both the speed and quality of customer service. A service supplier may, for instance, be able to handle a variety of resource-consuming compliance tasks more cost-effectively and free the buyer’s staff to concentrate on profit-making opportunities.

Similarly, ...