|
  Business Imperatives of ( Not ? ) Offsourcing.  A Kaytek Offsourcing Consulting Perspective |
Consulting
Offshoring
Organizations
Business Imperatives..
|
Business Imperatives of ( Not ? ) Offsourcing. A Kaytek Offsourcing Consulting Perspective |
|
In my last article, I had mentioned about the Key Questions that Organizations should ask themselves. The first of these questions was about whether an organization should or should not start offsourcing.  Business Imperatives are the drivers to Offsourcing. What are the Business Imperatives ?
Let us start with an Organization's Income Statement or an
Organization's Profit & Loss Account. An Organization's Profit is the difference between it's Sales Revenues and Expenses. Business Imperatives for Offsourcing have to be aimed at increasing the Organization's Profit. That means, Offsourcing has to either Increase Revenues Directly or Indirectly. And/Or decrease Expenses directly or Indirectly. Both these Impacts, of either Increased Revenues or Decreased Expenses will increase profits. The most simplistic approach taken by organizations is on the expense side. The maths is simple. People Expenses (Direct and Indirect) are amongst some of the biggest items here. At first glance, it appears fairly straightforward that getting work done with people in low-cost countries will reduce people related Expenses on the Income Statement. Usually, when properly managed, it does. Very rarely, do people look at leveraging Offsourcing for increasing Sales Revenues. How ? Identify the Key people in your company whose work productivity can be increased to help the organization increase Sales Revenues. Prepare not only a Return-On-Investment (ROI) for the proposed Offsourcing Initiative. Also prepare a RTI (Return-To-Individual) Statement. 'Better Planning ensures that Plans Work Better.'
|
|
|
|
|
|
|
|
|