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What should be considered when outsourcing a company function?

Karen Puchalsky EXPERT RESPONSE FROM: Karen Puchalsky

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QUESTION POSED ON: 01 July 2001
What should be considered when outsourcing a company function?

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There are many things to consider, including the outsourcing provider's experience in the application or process you are looking to outsource, their knowledge of your industry, service level agreements, and customer service. The more critical the outsourced application or function, the more crucial is the expertise.

You should not have to train the outsourcing company about your application especially if it is a time-critical application unless it is a unique application within your industry. If this is the case, you may not want to consider outsourcing it.

While most people overlook the value of industry knowledge, this is a major consideration. Within your own origination, you understand the importance and value a knowledgeable employee brings. This same value would apply to an outsourcing company.

Service level agreements are important. Not just the agreement for system support, but application support and customer interface are just as important. Does the outsourcing company understand your customers and how to deal with based on different criteria, (i.e., largest, most difficult, less knowledgeable, etc.)?


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