Oursourcing Due Diligence™
Outsourcing Due Diligence™ (ODD)
is a set of business process metrics to assist you in deciding whether
to outsource infrastructure functions such as accounting, human resources,
call centers, or the help desk.
Is a business process conflicting with your organization's strategic
vision?
With detailed knowledge of the current utilization of available capacity
for the functions being considered for outsourcing, an organization
can first understand how much opportunity exists for internal improvement.
This allows management to know the maximum potential for cycle time
improvement or unit cost reduction. By contrasting current unit costs
and volumes with future state production volumes, you can easily estimate
your peak production performance in the near to mid-term.
Armed with this information, you can seek lower priced and perhaps higher quality alternatives in the marketplace. However, you may find that a business process outsourcing (BPO) provider cannot meet the unit costs you already have. Only then can you understand that your functional units are more efficient and/or have a lower operating cost structure than what the marketplace has to offer.
On the other hand, you may discover BPO vendors offering a similar product or service at a lower cost or with higher quality. You can now pursue an outsourcing strategy with full confidence.
How do you decide if outsourcing makes economic sense?
It is this in-depth knowledge of process metrics, that makes Insight
Analytics' ODD service so valuable to organizations considering outsourcing
solutions. To enter the BPO marketplace with a comprehensive view
of your internal processes, costs and efficiency levels, you are ideally
positioned to make an informed choice on an important strategic decision.
ODD makes getting there easy.
How
Outsourcing Due Diligence™ Works
Outsourcing Due DiligenceTM (ODD) from Insight Analytics accurately
and precisely determines unit costs and unit times at a process driver
level. As little as six weeks produces the high quality and accurate
metrics you need for successful outsourcing negotiations.
ODD delivers detailed documentation derived though Structured Metrics® methodology. Protecting the confidentiality of all participants, the data collection process is painless, unbiased and accurate. Precise unit times and unit costs are aggregated to an industry accepted process driver level.
Know
the details of your business processes.
All current production-related processes in business units earmarked
for outsourcing are rapidly analyzed for resulting efficiency levels.
The ODD model further quantifies each documented process in terms
of statistically valid and sustainable production unit times. From
this detailed activity level analysis, the key drivers of production
are established.
Through a chart-of-accounts level expense analysis, a unit cost is attached to each process driver to create cost drivers. These cost drivers, with unit time and cost metrics, can be used by your organization to comparison shop for BPO vendors.
Make fact-based decisions.
With Insight Analytics' rapid development methodology, you will have
high quality and accurate metrics required for sound business conclusions.
Confidential and effortless data collection results in precise and
statistically valid calculations. And you will have no software to
buy, learn, implement or maintain. Just precise, easy-to-understand,
and unbiased information to help you decide whether outsourcing makes
financial sense for your organization.
Should you outsource or keep business processes internal?
Contact Insight Analytics to get started
now.
