Outsourcing: the "how to" guide

Outsourcing has been growing in popularity over the last few years. It provides excellent marketing opportunities for service providers and has opened new business sectors such as third party logistics providers and electronic third party manufacturers. If done well, it is an excellent way to gain focus on critical business processes and optimizes how business managers use their effort. To do the job properly, the authors have provided the necessary guidelines in establishing an outsourcing partnership. The steps are given as: 1) understanding the business strategy and vision, 2) candidate selection outsourcing, 3) specification and development, 4) feasibility study, 5) development of the business case, 6) tendering process and partnership selection, 7) contracts and negotiation, 8) implementation, and 9) supplier management. Application of these outsourcing strategies can lead to cost reduction and business simplification.