Strategic Outsourcing

Strategic outsourcing

 

Strategic outsourcing is the process of engaging the services of a provider to manage essential tasks that would otherwise be managed by in-house personnel. This is often done to allow a business to arrange the use of its assets to best advantage, and allow the company to move closer to the achievement of its goals. An outsourcing strategy of this type may be employed by businesses and other organizations of any size, and normally helps to reduce the cost of operations as well as allow available resources to be allocated to the other necessary functions that are still managed within the organization proper.

 

          Many people tend to associate outsourcing with small companies that operate with limited budgets. This is often true, since a smaller business enterprise is likely to have limited resources. When this is the case, a strategic outsourcing effort may involve contracting with a provider to manage the process of generating invoices to customers, receiving those payments, and paying any outstanding debts using the proceeds from those payments. Thus, the outsourcing allows the small company to divert resources that would normally go to supporting an accounting department into other important areas, such as product development, marketing, or sales.

         

 

IT Strategic Outsourcing Services

IT and business process sophistication are well recognized indicators of a company’s competitiveness and potential for superior performance when compared with industry peers. However, maintaining a state-of-the-art IT infrastructure is an expensive proposition that triggers many corporations to out-source their information systems. According to an AMR research study, over half of large enterprises are considering out-sourcing as a vehicle for reengineering their business process. Many firms have used the uncertainty in the market environment as an opportunity to focus heavily on eliminating waste and streamlining poor process flows. In addition, enterprises are often able to use outsourcing initiatives to free up resources to focus on core business value drivers, gain from economies of scale, liberate cash to be used for additional investments, and mitigate business and IT risk.

Pairing the industry’s most extensive portfolio of services, hardware and software solutions with our global network of IT, industry and business process experts, IBM optimizes your IT infrastructure to support today’s business requirements while charting a path to transformation across your enterprise