Many companies have already outsourced their IT and back-office functions or established shared services centres for major business processes. They are now outsourcing core activities like research, product development and tax and legal services, as globalisation and connectivity enable new ways of doing business. The rationale for outsourcing is thus changing dramatically; a growing number of organisations see it as a means of obtaining strategic advantages, not just as a cost-cutting measure.
The scale and complexity of outsourcing is also increasing. The earliest outsourcing contracts were long-term, one-to-one arrangements. Today, with greater connectivity, the trend is towards multi-sourcing where a lead supplier functions as a contractor and orchestrates other suppliers or where a group of suppliers collaborates to provide a collection of services.
How PwC can help
The outsourcing lifecycle consists of six phases, each with its own set of challenges. We focus on the big picture, and look at the full term of the deal as well as the issues arising in each phase. We can help you:
Identify which activities to outsource
Define your requirements and assess potential suppliers
Negotiate the right terms
Draft watertight contracts covering the sharing of intellectual property, performance criteria and penalties for non-performance
Make major changes and communicate with employees about alterations in their working environment
Manage political, regulatory and operational risks