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Firms 'must assess core strengths before outsourcing'
Companies that wish to gain maximum benefit from outsourcing activities have been reminded of the need to first assess their core strengths.
Michael Dominy, research director at analyst firm Gartner, told Supply Management that it is vital for companies to determine what they are able to do best, before outsourcing non-core activities to capable partners.
The expert warned that some companies allow their outsourcing policies to be dictated solely by cost, causing them to delegate functions that they would be better served by managing in-house.
This can lead to quality problems and declining customer service, making it vital that the proper planning and communication goes into managing an outsourced relationship.
"A regular flow of data, information and ideas, including inventory levels and customer orders, should be shared at least weekly," Mr Dominy explained.
Last month, information services company TPI published a report showing that demand for outsourcing rose across Europe in the second quarter of 2011.
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