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Consider all outsourcing options 'carefully'

27 June 2013

Identifying which parts of a business to outsource is an issue facing many businesses. 

Senior executives have so many options in front of them that Johnny Hewett - chief executive of private equity firm Smedvig Capital - thinks organisations have to think carefully before making any decisions. 

Writing in Growth Business, Mr Hewett stated the first step is to identify the 'core business' and from here firms can establish what areas can be performed "better and/or cheaper than it can be done internally".

He added groups need to run through a checklist - factoring in issues such as ease of integration - before signing any projects off. 

While overall strategic or operational leadership will always be in-house, Mr Hewett said this does not mean certain aspects of its execution cannot be outsourced. 

For example, senior executives can get other firms to gather critical data, but still retain the 'so what' element from the detailed analysis.

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Categories: Commercial, Procurement & Supply Chain

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