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Steven Skinner, Managing Director"Our Reports, eNews and Blog are here to keep you focused on developing better people, processes and systems."

Steven Skinner
Managing Director

When you shouldn’t outsource

Monday, January 11, 2010

Outsourcing isn’t always the right answer, in fact it may create more problems than it solves.

Reasons for not outsourcing include:

Your business personality does not suit outsourcing

  1. You like to micromanage
  2. Your impatient
  3. You don’t like to commit
  4. You have data privacy and confidentiality issues
  5. You avoid confrontation
  6. You think outsourcing will solve everything
  7. Your not flexible
  8. Your want someone else to take responsibility

The function is not suitable for outsourcing

  1. Some functions are too complex to outsource
  2. The return on investment is not adequate
  3. You already have the resources
  4. Perception problem with your customers and employees
  5. You haven’t established a business case

Problem with the service provider

  1. High fees
  2. You don’t trust the service provider
  3. The relationship is not mutually beneficial
  4. You can’t agree on deliverables
  5. You don’t make the right decision

Your customers and employees do not support the idea

  1. Your customers demand you
  2. You don’t have management buy-in
  3. Doesn’t agreed with your culture