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Outsourcing
Avoiding common outsourcing
mistakes
Geneva, 2013
Maksym Dovgopoly for 1
What DO NOT Outsource
• Core business competencies;
• Legal right to make business judgments;
• Knowledge-based functions dependent on
proprietary company information;
• Interdepartmental or multidisciplinary functionality;
• Critical business functions subject.
Maksym Dovgopoly for 2
When DO NOT Outsource
• If you want to escape dealing with normal
operational dilemmas;
• If you are not prepared “to get down and dirty” with
the details;
• If you want to turn over a project you have been
managing poorly;
• During the period prior to a shift in senior
management;
• During a major restructuring without an outsourcing
orientation.
Maksym Dovgopoly for 3
Cover Your Business Back
• Uncover hidden costs;
• Verify data security/protection measures;
• Evaluate company expertise;
• Plan for contingencies;
• Monitor scope creep;
• Care about cultural differences;
• Account for knowledge transfer costs.
Maksym Dovgopoly for 4
Instead of Epilogue
•Establish an objectives scorecard in advance and
use it as an foundation in your outsourcing
projects;
•Define the process for addressing problems and
changes;
•Put qualified people in place to manage the
relationship.
Maksym Dovgopoly for 5

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Outsourcing. avoiding common outsourcing mistakes

  • 2. What DO NOT Outsource • Core business competencies; • Legal right to make business judgments; • Knowledge-based functions dependent on proprietary company information; • Interdepartmental or multidisciplinary functionality; • Critical business functions subject. Maksym Dovgopoly for 2
  • 3. When DO NOT Outsource • If you want to escape dealing with normal operational dilemmas; • If you are not prepared “to get down and dirty” with the details; • If you want to turn over a project you have been managing poorly; • During the period prior to a shift in senior management; • During a major restructuring without an outsourcing orientation. Maksym Dovgopoly for 3
  • 4. Cover Your Business Back • Uncover hidden costs; • Verify data security/protection measures; • Evaluate company expertise; • Plan for contingencies; • Monitor scope creep; • Care about cultural differences; • Account for knowledge transfer costs. Maksym Dovgopoly for 4
  • 5. Instead of Epilogue •Establish an objectives scorecard in advance and use it as an foundation in your outsourcing projects; •Define the process for addressing problems and changes; •Put qualified people in place to manage the relationship. Maksym Dovgopoly for 5