Five phases for successful outsourcing

After all our experiences, we would like to get your opinion about outsourcing and what kind of lessons learned you might share with us. Outsourcing is a measure, and hence.

most companies do not relate their measures to a problem. So our question always is: What problem do you want to solve? In our opinion businesses and its leader try to react on the following issues and hope to resolve it with outsourcing. That's exactly why most outsourcing endeavours fail, and some even badly. 

A. We have a mess with our processes, let's outsource! The vendor may sort things out.

B. Our profit margin is decreasing, let's save some money! Outsourcing is cheaper.

C. All our competitors have done it, let's do the same, they won't be wrong!

D. Our infrastructure is outdated, let's outsource! Vendors have updated infrastructure.

E. This is anyway not our corp competence, let's get rid of it! 

There are even more more examples why businesses failed in their endeavour.  

Here is our view on what it takes to successfully outsource: 

1. Make or Buy

2. Total Cost of Ownership

3. Vendor Evaluation

4. Transformation

5. Relationship Management