The question of whether to outsource has become a key part of the strategic thinking process for a growing number of companies across a wide range of industries. They are carefully evaluating what is core to their business and weighing the benefits of turning critical functions such as IT, network management or other specific processes and applications, over to outside vendors. The driving force behind this decision is typically cost reduction and organisational restructuring.
However, choosing the correct outsourcing strategy is complex. It requires a careful balance of short-term needs with a longer-term view and a clear understanding of organizational strengths and capabilities. Our experience has shown that outsourcing decisions driven primarily by short-term conditions and pressures such as cost reduction and capital avoidance almost always creates problems in building a foundation for the longer term.
Cartesian believes the following to be critical success factors in outsourcing: a thorough upfront assessment, the construction of a solid business case, the establishment of meaningful metrics and the development of a realistic transition and ongoing governance plan.
Companies who have ventured into outsourcing arrangements have had both positive and negative experiences. The outcome often depends on how the original contract is structured, how the customer/vendor relationship is managed over time and how the end results are measured. If done correctly, outsourcing can be a win-win situation for both the customer and the outsourcer.
Cartesian with parent company TMNG Global has the necessary experience, objectivity and perspective to help our clients assess the benefits and risks of outsourcing key applications. Cartesian has assisted our clients to develop structured transition plans to successfully move their people, processes and systems from their legacy environments to the target environment and to manage the ongoing relationship with the vendor.
In order to continue sustained performance, your outsourcing initiative requires a sound business foundation fortified with the three main drivers of outsourcing value creation: process optimization, Economies of scale, and labor arbitrage.
Because each driver depends on the right technology deployed in the right way, Cartesian helps you carefully assess each of your underlying processes, technologies, and software. As a result, you are better able to sustain your present requirements and apply innovative solutions to strengthen your future service delivery.
Cartesian's outsourcing advisory services range from:
- Strategy and business case development
- Vendor selection and RFP development
- Contract negotiation
- Development and implementation of transition plans
- Program Management Office (PMO)
- Process development, implementation and training
- SLA, KPI and metrics development
- End-to-end testing
We understand that each outsourcing engagement should begin with an acknowledgement that all organisations are different and make decisions differently depending on a wide range of factors: business strategy, industry dynamics, organisational and community culture, outsourcing experience, and provider capabilities. We also recognize that outsourcing is ultimately a people-centric business and, thus, we pay particular attention to morale, resistance, retention, and cultural evolution. We customize each project to take these differences into account to enable a clear path to success in outsourcing for our clients.
Cartesian and parent company TMNG Global have a superior reputation and documented industry and functional experience in helping our clients find the right path to success in achieving excellence through outsourcing. We have global reach, flexibility, and scale, as well as experience with the world’s most successful companies.
We have helped our clients realize these business benefits from outsourcing:
- Pure Cash Savings – Beginning on Day One, you pay less and achieve more through the reduction of transition, evolution, and ongoing total process expenses, while also lowering the cost of keeping your long-term options open
- Better Risk Management – Improve risk management by reducing your transitional, operational, strategic, financial, and legal risks, from initial transition to contract conclusion to execution
- Improved Process Quality – Improve the quality of processes and services during transition and throughout operations
- Greater Flexibility – Regain time to focus resources on growing your business, marketing, customer care and other key elements of your business
- New Products and Services - With more streamlined and focused operations, you can quickly deliver new products and services to your customers