Further research on outsourcing

Through continuous research and comparison of the current standards of Outsourcing Management, as well as analysis of the reasons for outsourcing, risks, and failures on the Internet. The following conclusions are drawn: (from the perspective of the employer, only the outline is provided. For the study data, see escm, iso20000, itil cmmi v1.2, and online data)

1 reason

 

1.1 reduce and control costs

 

1.2 Focus on Strategic Affairs

Focus on the high-end value chain

Get rid of low-level repetitive work

Accelerate strategic restructuring

Release internal resources to transfer to high value-added work

1.3 get more professional services

Quality, technology, business, and efficiency

1.4 reduce and share risks

Specialized technology, large-scale

1.5 obtain previously unavailable service capabilities

Technical, personnel, business, and Global Services

2. Risks

 

2.1 Information Security Problems

Leaked to competitors

Leakage

2.2 cost exceeds expectation

In addition to outsourcing costs, it also includes management outsourcing costs, communication costs, and so on; The costs brought about by hidden defects after the outsourcers are delivered.

2.3 lack of flexibility

External regions require a stable and mature service environment. However, the services of the employer often change rapidly, and many other changes are required.

2.4 SPS terminate business or be acquired and merged

 

2.5 service quality could not meet expectations

 

2.6 SPS cannot provide services as agreed in the contract

Personnel, quality, technical capability, performance, response time, etc.

2.7 low service provider performance

 

2.8 Delivery failed

 

2.9 loss of key service provider staff

2.10 knowledge loss

 

3. cause of failure

 

3.1 cultural conflicts

 

Low productivity 3.2

 

3.3 poor communication

 

3.4 demand out of control

 

3.5 loss of key personnel

 

3.6 lack of trust

 

3.7 incorrect Technology Selection

 

3.8 management out of control