CEO, Optimization, Outsourcing
Optimization Improves Outsourcing
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The only way to truly benefit from outsourcing is to optimise your business process first. SharedXpertise's president and head of global operations, Karsten Soderberg, tells CEO Journal's Jim Banks that outsourcing is not a quick fix.
An emerging concern in the outsourcing market is that many firms are too eager to hand over their processes to service providers, if only to keep in step with their competitors or to realize a short term cost savings.
In choosing this kind of knee-jerk project, companies may be failing to look at all the options available to them and will almost certainly miss out on the true value that a shared service center or outsourcing agreement could yield.
Near-sighted approaches to outsourcing may indeed show a quick cost saving, but they could be storing up problems for later on. The strategic approach certainly requires more effort, but can deliver ongoing returns and reveal hidden value.
Adopting the more sophisticated, long-term approach requires that all options – from shared service centers to offshoring – are on the table. Before any of these options can be considered, however, firms must first look internally at how they can improve their own processes.
Karsten Soderberg, president and head of global operations for SharedXpertise, says: ‘Outsourcing in itself does not build excellence. Process optimization must be incorporated as a vital part of outsourcing projects. This enables them to be set up effectively in a shared service center or an outsourced facility. Business transformation is not an easy job.’ He believes that without process optimization as the first step in business transformation, outsourcing options will only deliver ‘your mess for less’.
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First published in CEO Journal. Click here to visit the CEO site.
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