Transformational Outsourcing is results-oriented, partnering stakeholders to drive innovation and value validation using industry benchmarks. It helps in employee awareness and professional development to exploit perceived benefits of outsourcing. In summary, it is process improvement and enhancement while outsourcing. The outsourced portion of activities are done by an organization which is viewed as an extension of the client organization. Integrated Supplier Management, on the other hand is outsourced managed services of some categories of procurement, which helps in preventing client resources thinning across all categories critical to the supply chain. Typically this could be indirect material or non-core commodities (for example, packaging and logistics management for an electronic assembler). Success is accomplished when an organization remains focused, drives costs out and utilizes the outsourced work as an extension of the organization while simultaneously driving continuous improvement and lowering costs.
Topics in this session included:
- The pros and cons of each approach
- The value drivers and key performance indicators
- The frameworks for organizational culture and change management in both approaches
- Speed of implementation and accounting benefits
Categories: 2015 Spring - Amelia Island, Summit Presentations
SRC Type: Outsourcing, Procurement Outsourcing / Transformation