Buyers are sourcing more operations than ever before, so it is increasingly important that they manage outsourcing initiatives to eliminate issues that can diminish their return on investment and extend the intended value of each outsourcing relationship. This paper discusses targeted considerations in outsourcing readiness and supplier due diligence to avoid common outsourcing pitfalls and position the buyer for outsourcing success.
This white paper first identifies root causes of outsourcing failures and their impact to the buyer. It then discusses three best practices for ensuring the buyer’s readiness for long-term success and proposes a five-stage due-diligence methodology to support the outsourcing strategy.
The paper also includes:
- Checklist of questions for stakeholders regarding readiness
- Warning about a factor that results in creating an inflexible outsourcing arrangement
- Key elements for each progressive stage in the outsourcing relationship maturity model
- Guidance on how the complexity of the deal drives the degree of supplier due diligence
- Best practices in supplier evaluation