Realising the benefits from outsourcing

  • The challenges
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    Outsourcing involves the delegation of non-core operations or jobs from internal production within a business to an external entity that specialises in that operation.  It is typically a business decision that is made to reduce cost or focus on core competencies and can also deliver wider business benefits such as:

    • Transfer of risk away from the central business 
    • Improved quality of service due from low (or variable) service levels
    • Acquisition of capabilities and skill-sets that are not in-house
    • Flexibility and scalability of service and ability to adapt to business change
       

    In our experience, these benefits, are typically only achieved if focus is provided in the following areas:

    • The outsourcing programme is an integral part of a coherent sourcing vision and strategy that is central to coordinating effective use of global resources and underpins the overall business strategy
    • Aligning the outsourced service to the organisation so that the services are utilised across the business – unlocking the benefits of consolidation and standardisation
    • Creating a repeatable model and common processes to simplify delivery
    • Shifting to a managed service delivery model to encourage delivery and share risk with the outsource provider
    • Approaching contracting with a set strategy and plan that can realise savings throughout the life of the contract
    • Consolidating the supplier base to achieve economies of scale and benefits from supplier competitive advantage
    • Rationalising and simplifying the required support to drive synergies
    • Focusing on defining outputs and service levels, rather than “How” service is delivered – this will allow the outsource provider with greater flexibility to create an efficient and cost effective service delivery model.
     
  • Our approach
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    Our approach which has been developed through practical experience of supporting large organisations such as BT successfully deliver outsourcing initiatives.  The approach is based on a comprehensive stage gate lifecycle that is rich in outsourcing content.  The lifecycle stages define the key phases of development and the stage gates provide a robust but flexible governance framework to ensure that key decisions are made in a timely manner.  The lifecycle is underpinned by eight outsourcing themes which contain guidance documents and templates for each stage of delivery.

    Moorhouse outsourcing lifecycle
     
    Our approach can be tailored to specific business models or industry sectors and is available online through our fully client configurable programme delivery tool mapp™.
     
    We do appreciate that our framework, whilst pragmatically capturing best practice, is only as good as the effectiveness of its application.  Our consultants work with our clients to ensure that the approach is fit for purpose, effective and fully embedded into new ways of working so that they deliver measurable benefits. 
  • Proof of what we can do
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  • Services we offer
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