Siemens and Volkswagen sell IT businesses

Upheaval in the German IT services industry gathered pace on Wednesday as Siemens and Volkswagen sold large businesses, and experts warned that more disposals could follow. read

The Business Imperative of Outsourcing (Industrial Management)

The first part of a two-part series of the business imperative of outsourcing is presented. This article will provide an understanding of how to address this new business imperative and provide the much-needed leadership for achieving organization success through successful outsourcing. Business processes can be divided into two types: core functions and non-core functions. These two types of functions can be further divided into the kind of focus they have: primary or secondary. Identifying core and non-core functions hinges on how to touch customers. The first step in evaluating business processes for outsourcing is identifying which processes need strategic outsourcing and which should be contracted. Determining the functions and segments where outsourcing will have the most value is a critical part of the outsourcing process, yet the wrong factors are often used to make this decision. Once a teamwork mindset has been adopted and an open and honest communication has been agreed with the provider, a lasting relationship necessary for outsourcing success can be built.

EXECUTIVE SUMMARY

It's no longer a matter of deciding whether your organization should be outsourcing some of its functions. The question now is what to outsource. By distinguishing core from non-core functions and further discerning primary from secondary concerns, you build a matrix from which sound business decisions can be made.