The “Plan” phase
of the Global Sourcing / Outsourcing / Offshoring lifecycle involves
the following critical elements.
Development
of Corporate Sourcing Strategy and Value Assessment
(Why & What)
Determine
how any sourcing strategy should support business
objectives,
Determine which business
processes & IT function are critical and
core to corporate objectives,
Assess maturity of existing
in-house business processes based on the trends
of service levels, resource
capabilities, performance gaps & cost
inefficiencies,
Identify potential
sourcing (outsourcing / offshoring, captive
/ 3rd party) alternatives & their benefits,
risks, and challenges involved,
Compare in-house and
outsourced service delivery alternatives based
on comprehensive multi-year financial projections
of costs and ROI,
Determine cost saving
potential of proposed sourcing options and
target costs and service levels necessary
to support business objectives,
Determine which processes
can be delivered most effectively and efficiently
through internal versus external sources,
and
Select optimal sourcing
options
In-house vs. Outsource,
Onshore /
Near-shore / Off-shore,
Captive / Joint Venture
/ Build-Operate-Transfer / 3rd party
Definition
of the Sourcing Process and Solution (Roadmap
of Where, When & How to Outsource)
Determine
the priority & chronology of sourcing
(sequence of sourcing initiatives by function
/ region / business division, etc.),
Define how the transition
to the new sourcing option will be implemented,
Define success criteria,
timeline and resources for critical milestones
of transition, and
Define best practices
for service provider evaluation and selection,
relationship management and contract governance.
