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BUSINESS CASE DEVELOPMENT |
The logic behind business process outsourcing is simple: identify
the "core" competencies, focus on them, and "get
rid" of everything else. The logic behind offshore outsourcing
is likewise simple: choose
(among the processes up for outsourcing) the processes that are
transaction-type, labour-intensive, and comparatively "insulatable".
But what does this mean in practice?
Which functions are "non core" and which ones "core"? And
among the "non
core's" which have
"transaction-type, labor-intensive, and comparatively insulatable"
processes?
And, once identified such processes,
where can one find a realistic preliminary evaluation for the potential
suppliers from
the standpoints of (leaving aside cost) service, quality, reliability,
security, etc?
To develop the business case, in essence, is to answer these questions.
The starting point for case development is the presentation and discussion
of instances of
offshore outsourcing involving problems similar to the customer's (Nunki
has a good and up-to-date collection of material).
The presentation is followed by a "creative phase" where ideas are
floated and by a "consolidation phase" where the projects' feasibility
is considered. Slowly a consensus takes shape for one or more projects
potentially of interest to the customer.
The case development ending point is a business plan containing the description
of processes and solutions and the quantitative estimation and timing
for investiment and cash flow.
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