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Forward planning 'essential for outsourcing success'

13 June 2011

Companies that are planning to outsource elements of their business have been reminded of the need to ensure the process is properly planned.

A new report from procurement consultants Efficio has suggested that a lack of upfront planning is a common flaw among businesses, one that can severely undermine the transition phase of an outsourcing project.

Efficio principal Julian Catchick stated that planning for such a move should be initiated as soon as the basic strategy has been developed, with the transition to be considered at the same time as the commercial process itself.

He explained that this will allow companies to allocate the right amount of resources, as well as helping them to clearly define their relationship with the outsource provider.

"It is necessary to build transition into an organisation's outsourcing programme plan, not as an afterthought but at the outset, noting it is an integral part of the mix and the negotiations," Mr Catchick added.

Last month, Saurabh Gupta of global advisory service Everest Group told Procurement Leaders that a growing number of firms are turning to procurement outsourcing due to the savings it delivers.

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Categories: Program & Project Management

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