Outsourcing or Externalisation

BACHTARZI JonathanM2 SPI October 2011

Outsourcing is a very relevant topic which is also very sensitive.

Outsourcing means contracting a part of your business

• Local• Overseas

Introduction

Before outsourcing : DIY

Started in the 20th century

Offshore outsourcing started about 20 years ago

History of outsourcing

Cost saving

Focus on core business

Knowledge

Follow business

Causes of outsourcing

What should be outsourced?

Selecting a reliable partner

Transfer of knowledge

How to proceed?

Low cost countries can achieve 20 to 25% gain in productivity

Companies can easily reflect the production demand

“rules-based’’ tasks are the most successful

Time-Zone Overlap

Benefits

Endengenous

◦ Cultural issues◦ Costs◦ Investment◦ laws

Exogenic

◦ RE = ∑i P(UOi) x L(UOi) RE: risque P(UOi) : probability of a negative consequence L(UOi) : generated loss

Risks

Conclusion

Thank you for your attention