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Why Outsourcing?
A decade ago, most small and large companies had the strategy of “Build and Maintain” in the IT business unit. Corporate cost cutting and the ever-increasing pace of technological innovation has spawned a generation of CFOs who accept the underlying principles of outsourcing.
Whether you are starting or transforming your IT operation, you should not lose sight of your market and your competitors. Taking away the organization focus from their market can have dramatic long-term consequences. This is where outsourcing companies such as Katmai Technologies can help. Outsourcing solutions can assist in relieving the upper management for day-to-day IT operation issues and turn their focus back on their core business.
Outsourcing has been a major initiative in recent years for addressing issues relating to changing business cycles and growth. Many critical areas of business are being outsourced.
We take a comprehensive look at the process of outsourcing, from understanding the strategy required for outsourcing success to successful management of the outsourced services provider.
Katmai views the core business process of outsourcing as the following:
- Strategic Challenge: evaluate and analyze the projects’ stakeholders’ goals and build a long-term business model to sustain the partnership.
- Value Creation: develop a value proposition in the outsourcing model to benefit both companies.
- Managing the Process: manage the outsourcing transitions from horizontal and vertical business processes
- Performance Management:
- Metrics and incentives
- Strategic governance
- Communication processes for sustaining long-term relationship
- Periodic performance reviews
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