The Three Dimensions Of Value-How Different Levels Of Outsourcing Impact Buyer Results
- Topics:
- Evaluation,
- Growth
- Source:
- Everest Group
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Overview: The primary benefit of outsourcing is creating value. The knowledge of which kind of value the outsourcing relationship is creating is mission critical information because the impact on the organization differs wildly. Everest consultants are closely examining the outsourcing process to understand how and where outsourcing creates value. It has been analyzed that most buyers initially decide to outsource an important but non-core process to save money. The value outsourcing creates is relatively easy to quantify when all are concerned about is cutting costs. A company that outsource a data center and achieves a 15 percent cost reduction can identify a 15 percent creation of value. Value creation is possible because suppliers use leverage. Once you understand how to reduce costs through outsourcing, you can see how outsourcing also impacts other services, related processes, and different constituencies within the company.
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Format: HTML | Date: Apr 2002 | Pages: 1
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