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“A strategy may well be revised over time. What is the right decision for outsourcing today may need to be revisited in the future”

 

Mats Alerius, Country Head Sweden at PA Consulting Group

What drives organisations to outsource?

Mats Alerius

Dagens Industri

9 November 2012

 

Mats Alerius, Country Head Sweden, recently had an article published in ‘Dagens Industri’ contributing to the debate about what drives organisations to outsource some processes or functions.

“A recent survey from PA Consulting Group shows that, increased efficiency and cost reduction are the most important drivers for organisations to outsource. Flexibility is another strong contributing factor.”

Mats Alerius’ recommendation to businesses is to define a strategy for what they want to achieve with the outsourcing. Is it about cost reduction, efficiency gains or to refine the business operations?

“A strategy may well be revised over time. What is the right decision for outsourcing today may need to be revisited in the future”

Call centres are a good example of a function which several organisations today consider to take back in-house. The lack of direct contact with customers has in many cases had a negative effect on the relationship resulting in decreased revenues.

The key question is “What functions can be delivered by an external party at increased quality and/or reduced cost?”

“The answer for many organisations is to outsource pay administration and invoicing whilst maintaining more value add services such as financial control and analysis functions.”

 

Mats Alerius, Country Head Sweden at PA Consulting Group



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