Build Vs. Buy – Outsourcing The Training

0 Comment

Does it make more sense to develop the solution internally or use outside resources? While much has been written regarding the build vs. buy decision for technology solutions, there is little literature regarding learning solutions or the training function as a whole. While we believe that build vs. buy is a good question to ask, it is not necessarily the first, only, or best question to ask. In order to determine what makes sense for your specific situation, we recommend considering the following questions and reviewing the enclosed articles on outsourcing. 5 Key Business Questions to Consider before Outsourcing Key Cost, Quality, and Time Questions Regarding Outsourcing Outsourcing for Cost Savings, Speed, and Strategic Growth Top 10 Reasons Companies Outsource Top 10 Factors for Successful Outsourcing Top 10 Factors in Vendor Selection With LSA vs. Without LSA 5 Key Business Questions to Consider before Outsourcing Before speaking with a potential outsourcing partner or finalizing your decision to outsource a function, program, or project, we recommend that you review the following questions. At a minimum, your potential vendor or partner should be asking these questions to ensure that they are adding clear value. 1. Do you understand all of the symptoms? What is the context of the issue? What are the facts and the technical issues? What pain is the problem causing? How is it felt specifically? How does the problem manifest itself in your organization? How bad is the pain? How big is the problem? What is the value of solving the problem? What is the value of not achieving your desired result? What are the consequences to you? Your boss? Your organization? Who/what else is affected? Is that important? 2. Do you understand the key causes and constraints? How did the problem come about? What has stopped it from being resolved before now? 3. Do you understand the business objectives? What are the positive desired results? What are the benefits of solving the problem or fulfilling an opportunity? How will you know success has been achieved? 4. Do you understand the benefits? What is the payoff from each outcome? 5. Do you understand the bigger picture? If you were the CEO (or General Manager) of your company, would you care about this problem? Why? What about the solution would be valuable to you? Is there anything else to consider? Has anything been left out? Is there anything or anyone that would inhibit the successful implementation of a solution? Key Cost, Quality, and Time Questions Regarding Outsourcing We believe that the outsourcing of a function, program, or project should provide clear cost, quality, and time benefits to an organization. Here is a list of typical questions that we believe should be addressed. Cost Will outsourcing reduce costs? Short term? Long term? Have you compared Build vs. Buy return on investment scenarios? Do you want to invest internally in hiring, managing, firing, researching, assessing, designing, marketing, delivering, and evaluating solutions? Quality Do you have the internal resources to effectively meet the objectives? Is this the best use of these resources vis- vis other strategic priorities? How can you most effectively deliver and scale up or down with changing and anticipated business needs? Would you benefit from access to best practices and world class quality outside the organization? Should you outsource some or all of the function/project? Is this your core competence? Should it be? Will it help you develop one? Would you gain valuable partnership benefits and contacts? What would work best in your culture? Time Will outsourcing increase speed to better results? Do you have the time to build it internally? Outsourcing for Cost Savings, Speed, and Strategic Growth A recent Outsourcing Institute study found that while most enterprises try to survive, the outsourcing industry continues to thrive. A decade ago, cost reduction took center stage as companies sought short-term, band aid solutions from outsourcing and received equivalent tactical benefits. But, the market has turned. Its do or die and outsourcing is no longer about cost savings. Now its an essential revenue and growth strategy for every corporation. In this unpredictableand mostly downeconomy where most companies struggle to do more with less,outsourcing is not only a clever alternative to hiring, but also a means to turn big picture goals into reality faster and more effectively than everwith measurable returns. Now everybody wants to plug into OPRother peoples resourcesand strategically focus internal resources towards doing what they do best. No more, no less. Top 10 Reasons Companies Outsource 1. Reduce and control operating costs 2. Improve company focus 3. Gain access to world-class capabilities 4. Free internal resources for other purposes 5. Resources are not available internally 6. Accelerate reengineering benefits 7. Function difficult to manage/out of control 8. Make capital funds available 9. Share risks 10. Cash infusion Source: Survey of Current and Potential Outsourcing End-Users The Outsourcing Institute Membership, 1998 Top 10 Factors for Successful Outsourcing 1. Understanding company goals and objectives 2. A strategic vision and plan 3. Selecting the right vendor 4. Ongoing management of the relationships 5. A properly structured contract 6. Open communication with affected individual/groups 7. Senior executive support and involvement 8. Careful attention to personnel issues 9. Near term financial justification 10. Use of outside expertise Top 10 Factors in Vendor Selection The factors listed below are relevant to both our partners and clients. We find that the ranking of the various factors shifts with specific business situations, philosophies, and industries. In addition to the factors listed below, our clients typically use Speed to Results as a key criteria in selecting an outsourcing partner or vendor. 1. Commitment to quality 2. Price 3. References/reputation 4. Flexible contract terms 5. Scope of resources 6. Additional value-added capability 7. Cultural match 8. Existing relationship 9. Location 10. Other With LSA vs. Without LSA Since 1995, we have focused on adding clear value to our clients. The list below represents the top 10 areas that our customers tell us that they appreciate about outsourcing functions, programs, and projects to LSA. With LSA Without LSA 1. Guaranteed results Inconsistent quality, pricing, and results 2. Focus on partnering with business units to drive meaningful results Tie up valuable resources on administration and non value-added activities to your customers 3. Select from pre-qualified, proven world-class experts, approaches, and practices Invest resources reinventing the wheel, sourcing, qualifying, managing, and auditing multiple unproven vendors and cumbersome RFPs 4. Receive a 24+% ROI and clear business cases supporting each project based upon best practices Forego discounts across multiple vendors and projects and spend time creating internal Justification 5. Have one point of contact, one invoice, and one contract Deal with multiple contacts, relationships, invoices, purchase orders, and negotiations 6. Leave the logistics to us Invest in managing scheduling, marketing, registration, materials, changes, etc 7. Access to the LSA Success Cycle’ used to measure results (levels 1-5) and prioritize next steps Invest in collecting, summarizing, and analyzing individual results and evaluations and determining next steps 8. Access to objective Industry-wide options designed for your specific business, culture, industry, and budget Sort through multiple vendors selling isolated, one-off, off-the-shelf training events based upon what they have available 9. Have an objective Account Consultant assigned to your account at no cost Use only internal resources and paid vendors to drive success 10. Utilize integrated solutions across multiple vendors, content areas, and Processes Invest time and money "patching" together independent vendor solutions Specialist Procurement Research Providers Can Add Significant Value To Procurement Departments By: Pure Research – Businesses that have their own procurement departments are starting to realise the importance of shifting from cost to value, with a ‘need to know’ attitude. Tags: How Customised Outsourced Investment Research Can Be Useful For Buy-side Firms By: Pure Research – Customised research can be valuable to buy-side firms that require timely insights and professional views that can help meet their needs. Tags: 2016 New Year"��s Sales Management Resolutions By: Tony Cole – Here we are, once again at the start of a new year. As you look ahead, what are your goals? What are the goals for your team and what concerns you most? Here are my 6 suggestions for New Years Resolutions that, if imple … Tags: Understanding The Details Of Intellectual Property By: david grow – Intellectual Property has a vast domain and protects any form of work which is an invention or a creation of an individuals mind. Patents, trademarks and industrial designs are few of the other types of intellectual pro … Tags: Top 9 Questions To Ask A Property Management Company By: smartweb – Walters Management offers community management in San Diego. Walters Management provides the essential services to maintain, protect and enhance the value of your home and community. Tags: Hire Salespeople Who Sell By: Tony Cole – At my keynotes, the question is always How do I hire better salespeople? Unfortunately, there is no simple answer to this question. One thing you must recognize is that your recruiting process is perfectly designed f … Tags: Control Areas Of Iso 27001 Internet Security Management Systems: By: iso27001 – ISO/IEC 27001 is the best-known standard in the family providing requirements for an information security management system (ISMS). Tags: Where Procrastination Comes From By: sinuse – There’s no doubt about it: for so many of us, procrastination is an absolute scourge of our lives. It’s one of the biggest motivating factors behind the enquiries that we receive about our time management training here at … Tags: Are You A ‘listening’ Leader… Or Just Faking It? By: sinuse – Given our own extensive leadership training, we are always interested in the latest thoughts on leadership here at Cerulean, and our attention couldn’t help but be captured by one recent article that appeared on the Traini … Tags: The Strengths Of Extrovert And Introvert Workers By: sinuse – A recent blog here at Cerulean focused on ‘introverts’ and ‘extroverts’ and how these different personality types express themselves in the workplace, which made us think… well, why not go into a bit more detail on their … Tags: 相关的主题文章: