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Outsourcing decisions 'must be based on more than market concerns'

26 April 2012

Companies that are considering outsourcing key functions should make sure that their decision to do so is not motivated purely by a desire to react to market conditions.

Experts have informed attendees of the recent ProcureCon Indirect conference that while current market economics are always a factor when deciding whether to outsource, they cannot be the only factor, reports Supply Management.

Panellist Felix Schoenemann, procurement director for global indirect materials and services at nutritional products company FrieslandCampina, said it is vital that projects of this kind are based on a long-term strategy that has the full support of management.

It is equally vital that companies have the resources necessary to bring any such plans to successful implementation, both in terms of staff and capital.

"An outsourcing project does not stop at the contract: it is a lot more complex. Some of these projects take 12 to 18 months to be implemented," he observed.

Earlier this month, field sales organisation PerDM published a report showing that outsourcing sales and marketing functions is becoming an increasingly popular option for companies that are seeking to make savings in the current business climate.

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Categories: Functional Practices, Program & Project Management

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