Topic: The Key to Successful Outsourcing: Integrated Training & Knowledge Transfer
Outlines:
Strategic Outsourcing
• Outsourcing is a management tool for greater efficiency.
• It allows businesses to focus on their core competencies.
• At its best, it is a close partnership between a service provider and a buyer, where;
• the provider can offer at least equal skill and proficiency in the task, as in-house resources, and;
• the buyer has the ability to manage the source as if it were in-house.
The 5 Cs of Successful Outsourcing
Cost – The Great Inducement
• Almost half of the businesses engaged in outsourcing consider cost saving as the primary advantage.
• Almost half of the businesses engaged in outsourcing consider cost saving as the primary advantage.
• BUT…
• There are risks associated with outsourcing which could overshadow the savings;
• Almost half of the businesses engaged in outsourcing consider cost saving as the primary advantage.
• BUT…
• There are risks associated with outsourcing which could overshadow the savings;
• AND …
• Innovation, skills and state-of-the-art technology could bring additional value from outsourcing.
Matching Competencies
Making Outsourcing Work!
The Key to Successful Outsourcing
• Collective and continuous learning is the key to successful outsourcing.
• Sharing knowledge and skills will enhance the effectiveness of the 5 Cs.
• The challenge is to employ a standard training platform for in-house teams as well as outsource providers.
• Latest advances in IT make commitment to share knowhow with multiple outsourcing partners practical and cost efficient.
The Case of Toyota
• Toyota is famously outsourcing up to 70% of its operation in close collaboration with suppliers all around the world.
• This long standing strategy has helped the company to consistently cut cost and improve quality.
• A key element of the strategy is Toyota’s Learning Network – sharing productivity-enhancing knowledge throughout the suppliers network.
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