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Strategy 'a critical phase of any outsourcing project'

12 September 2011

Creating a sound outsourcing strategy is the key to unlocking the benefits of delegating business functions to external providers.

This is according to a report from industry analyst Gartner, which notes that the strategising phase sets out the direction, pitfalls and overall business case for any outsourcing cycle.

As such, this stage is vital in calculating costs and benefits associated with the process, as well as which functions should be outsourced and who the best partners could be.

Issues such as scenario planning, risk assessment and action plans are also central to the foundation of an outsourcing programme, with the consequences of rushing these processes noted as being potentially harmful.

Claudio Da Rold, vice president and distinguished analyst at Gartner, said: "Organisations that fail to master this initial phase ... are subsequently less likely to select appropriate providers, negotiate a sound contract and effectively manage the deal."

Earlier this month, a report from TPI noted that demand for outsourcing among global companies has risen in the last year.

Odgers Interim are UK leaders in Interim Management solutions for the Commercial Sector. We have offices in London, Birmingham, Leeds, Manchester, Glasgow, Aberdeen and Cardiff as well as over 50 offices globally. We are the only Interim Management providers who are part of a top tier international executive search firm. We work closely with our executive search colleagues to find candidates who can offer short term solutions with long term benefits.

Categories: Functional Practices


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