Methodology:OutsourcingOverviewOutsourcingisapotentiallypowerfulstrategyforacompany.Thecosttomakeamistakeinoutsourcingcanbeenormousandsometimesimpossibletoreverse.Therefore,outsourcingdecisionsmustbemadeonaprofessional/strategicbasis-notreactivetoshort-termsituations.TheContractServicesgroupisaleadproviderofinnovativeoutsourcingsolutions.Theseoutsourcedservicesareextensionsofourcoreskills/competencies.Wehavetheflexibilitytomeetnewanduniqueclientneeds.Wecanhelpclientsachieverealcostcontroland,perhapscostreduction.Weachievethisthroughconvertingfixedcoststovariablecosts.Thisapproachbringstherightresourcestobearonproblemsattherighttime,andthroughpredictablecontractpricing.Theoverallobjectivesoftheoutsourcingmethodologyareto:-Provideamethodologywhichcanbeusedbyanycompanytoimplementanyoutsourcingsolution.-ProvideenoughbackgroundontheAAoutsourcingmethodologytoallowsomeonewithnoprioroutsourcingexperiencetoconsultwithaclientonthismatter.-DemonstrateAA'sexpertiseinthefieldofoutsourcing.Questions1.Whatarethecompany’scoreactivities/competencies?2.Whatarethecompany’sbiggestbusinesschallenges?Howdoesitplantoaddressthosechallenges?3.Whatarethecompany’sgoalsandplansforthefuture?Growthplans?4.Whatisthestrategyofthecompanyrelatedtooutsourcing?5.Whatfunctionsdoesthecompanycurrentlyoutsource?6.Whattypesoffunctionswouldthecompanyconsideroutsourcing?Hints-Obtainbuy-infromseniormanagementthroughouttheprocess.Determinewhothestrategicdecisionmakersareandtheirviewsonoutsourcing.Methodology:Outsourcing1-UtilizeGlobalBestPracticesforbenchmarking,bestpractices,performancemeasuresanddiagnosticreviews.-Identifyhumanresource/changemanagementissuesearlyintheprocess,andensuretheoutsourcerandcompanyHRProfessionalsareinvolvedthroughouttheentireprocess.Issues-AreoneoftheArthurAndersenBusinessUnitsgoingtobeinterestedinprovidingtheoutsourcedfunction?Arethererelatedindependenceissues?Dothenecessaryoutsourcingskillsexistwithintheperformingoffice?Aretheappropriateexpertsinvolved?-Determinecommunicationplanasearlyasfeasibletopreventleakageofinformationandmixedmessagestoemployees.-Itisimportantforthecompanyandtheprovidertohaveamutualunderstandingofoutsourcingprinciples,benefits,risksetc.ThisissueshouldbeaddressedinPhaseItomanagetheclient'sexpectations.-Thecompanymayperceiveoutsourcingasadecreaseorlossofcontrol.Properinternalcontrolmechanismsmustbeestablishedandenactedascontrolremainsafiduciaryresponsibilityofmanagement;itisnotoutsourced.-Itisimportanttomanagetheclientexpectationsrelativetothepaceofchangewhichwillbemadebytheoutsourcer.Additionally,acontinuousimprovementmindsetiscriticaltoensurefutureprocessimprovements(IftheclientperceivesAAtobeinamaintenancemode,theymayfeeltheycouldlowercostsbyterminatingtheoutsourcingarrangement).OtherA.Keyelementsofoutsourcing-ThroughoutthefivePhaseoutsourcingmethodology,fourkeyelementsmustbeconsidered:scope,relationship,economics,andperformancemeasurement.Abriefdescriptionofthesefourelementsfollows:-Scope-depth,breadthandnatureofoutsourcingopportunities(processfunction,location,etc.).-Relationship-theproviderrelationshipcanrangefromthatofavendortothatofapartner.-Economics-thecostoftheoutsourcingsolutionwillvarybasedontheelementsdiscussedaboveandotherissues.Methodology:Outsourcing2-PerformanceMeasurement-howwilloutsourcer’sperformancebeevaluatedandmonitored.B.TypesofOutsour...
