Outsourcing.

Today we will look at how to create a highly successful outsourced project team, whether it is for a personal, business  or client’s project.

Effective outsourcing doesn’t just happen by chance. Support and leadership is required from the top of the organisation. You also need capable people for planning and implementation.

5 Stages of Outsourcing

Outsourcing an be represented as a 5-stage process, with each stage centered around a business question.

  1. Is the opportunity appropriate? Will this outsourcing opportunity make us more competitive in the marketplace, or will it dilute our uniqueness?
  2. Is this opportunity real? Can we develop a business case which will confirm quantitatively that genuine benefits will be delivered.
  3. Can we craft a good deal with a qualified provider? That is, can we reach an agreement with a good service provider that will be consistent with the benefits we anticipate will come?
  4. Can we execute? Will we be able to modify our internal processes to integrate this outsourcing arrangement beneficially?
  5. Can we provide ongoing management for this agreement? Once the outsourcing arrangement is in place, will be able to keep it moving forward or will it stagnate?

Outsourcing Teams

Most outsourcing projects require a series of teams, which will evolve over the life of the agreement.

  • Early business planning and evaluation is typically handled by an ideas team.
  • As the project moves toward implementation, more operational people usually get drafted in.
  • A transition team may be required, followed by an assessment and management team who will analyse and adjust the project long term.
  • External advisors and consultants may also be called on as required.

Project Leader

As with most business activities, the role of the team leader is critical. What are the characteristics of strong outsourcing project leaders? They need to have:

  • the ability to embrace and champion change
  • previously earned credibility within the organization
  • a desire to manage others, not simply do things
  • the ability to build trust in others
  • good communication and negotiation skills and aptitudes
  • good strategic management skills
  • knowledge of how to manage and market new processes
  • good process expertise and know-how.