Outsourcing has been a strategic management
tool for decades. The driving force behind the decision
to outsource in today's highly competitive and global marketplace
is the advantage organizations get as a result of the ability
to focus on core competencies. In simple terms, outsourcing
allows organizations to be more efficient, more effective,
and to reduce costs by outsourcing critical but non-core
functions and processes.
Given this scenario, it's no surprise that outsourcing is
quickly becoming an accepted business practice for companies.
In fact, Cutter Consortium estimates the outsourcing market
to be $100 billion in 2005, with a 10-15% annual growth
rate.
Outsourcing through a shared vision…
Successful outsourcing usually depends on two fundamental
factors: shared strategic approach and effective relationship
management through cooperation.
At CAEtech, we invest in building relationships right from
the initial dialogue with our customers. We add value to
outsourcing with our emphasis on strong relationships, high-level
strategic reviews and continual improvement guided by performance
and end user satisfaction measurement. When organizations
follow these steps, they achieve higher levels of benefit
and greater cost savings than those who follow a more traditional
approach. We have outlined below four guidelines that are
the hallmarks of successful relationship management.
CAEtech approach…
- Create a shared vision for the outsourcing.
- Alignment with the customer's strategic business objectives
- Continuous improvement through performance and customer
satisfaction measurement
- Clear and consistent communication
- Predefined contingency plan and exit strategy
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