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Jean Cunningham

Jean Cunningham: Is it part of your strategic value? Is it something you do weekly/daily? Does it require specialist knowledge?

By Jean Cunningham, - Last updated: Tuesday, November 12, 2013 - Save & Share - Leave a comment

In the office functions I feel the first test of outsourcing is three questions: is it part of your strategic value? ( keep it inside) Is it something you do daily/weekly and links with other processes?( keep it inside) Does it require highly technical knowledge and changing laws ( consider outsourcing)

So on a practical level, payroll processing is often outsourced. It is not often strategic, does not tie to many other processes, and has state by state as well as ERISA laws. On the other hand, material procurement is highly strategic, tightly linked to other processes and it is done many times a day.

Overall my experience is that outside services providers can rarely keep pace with the rate of improvement in a good lean company. They become a ball and chain to pull along rather than pulling you into the future.

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