Outsourcing can be complicated to handle. Henrik Ringgaard, an outsourcing expert at PA Consulting Group, offers a six-step guide to help companies lay the foundations for a successful outsourcing process.
First, Henrik advises that companies lay the groundwork for their decision-making. This decision analysis needs to answer a number of questions - not only what to outsource, but also why you want to outsource in the first place, and how to proceed with it.
"Once you have your goal and strategy in place,” Henrik advises, “the second step is to specify and develop the detailed solution. To Management, this is about specifying the business case further to evaluate the effect on both employees and operating model. It’s also about finding the right external solution, partner and commercial model".
The third step is communication. If employees don’t buy into the solution from the outset, they won't collaborate, which underlines the need for straight-forward communication and arguments that offer clear answers to the "what?" and "how?".
The fourth step is starting up non-critical pilot projects that will allow for testing of the new set-up and the actual solution, for example with a partner or an outsourcing company.
Fifth is the actual implementation that should be carefully planned not to get in the way of the daily business. This should be integrated into the operating model, keeping in mind that this is the phase when the solution should lay the foundation for an ongoing value realisation.
Finally, you need to evaluate and adapt the outsourced services on an ongoing basis.