Affiliate Outsourcing Steps and Warnings

Begin with a Shared Vision A shared vision is the first step to managing an outsourcing relationship. In the early days, cost or headcount reductions were the most common reasons to outsource. In today’s world, as explained earlier, the drivers are often more strategic, and focus on carrying out core value-adding activities in-house. These strategic objectives mean that outsourcing initiatives must come from the top. Senior executives must express the purpose and aspirations of the outsourcing initiative and convey how the course will benefit the organization. The goals of the outsourcing initiative have significant consequences for the selection of the outsourcing vendor and the prospective management of the partnership.