Companies elect to outsource for a variety of reasons, some strategic and others tactical.
In the past, outsourcing has often been used tactically, as a rapid and often short-term solution to a particular business need or problem, which does not form part of an overall business strategy. We need to consider Strategic Outsourcing, which means an organisation, works with one or more suppliers in order to effect a significant improvement in business performance.

What are the strategic reasons that may lead us to Outsource? There is a growing popularity of adopting a strategic approach to Outsourcing. This stems from the simple fact that organisations adopting this method, appear to do well. However, Strategic Outsourcing is only likely to be effective and bring the desired results, if management is prepared to adopt a completely new perspective on management control. Organisations are more likely to meet
their commercial objectives and maximise their success if they direct management control not so much towards controlling inputs, but rather towards focusing on the finished output. Some of the strategic objectives for pursuing outsourcing may be:
Free up resources for mission-critical purposes Maintain flexibility Accelerate process improvement/re-engineering benefits Access current world-class capabilities or technologies Avoid technology obsolescence

What are the tactical reasons for Outsourcing?
Tactical outsourcing efforts are aimed at achieving specific improvements over internal processes in a defined business area. Among the tactical reasons for outsourcing are:

What to Outsource?
Identifying Outsource opportunities and understanding the benefits that you seek to achieve from outsourcing (the why) provides the basis for evaluating which business process to consider for outsourcing (the what). Each business process within an organisation can be evaluated in terms of a set of three questions.

A negative answer to any one of these questions indicates a process that you should consider for outsourcing. Before making the decision to outsource, however, you must answer one more question: Do l understand the process well enough to outsource it? If not, then you will require outside assistance to leverage process for outsourcing.

Achieving success through outsourcing We have an experienced outsourcing partner who will deliver practical business driven solutions to all outsourcing related issues, with the advantage of being entirely independent. We are committed to helping you do what you do best, and outsource the rest, by achieving a balance between quality, cost and service levels. Apps Solutions has a comprehensive and pragmatic approach to outsourcing that focuses on four key stages:

Creating a Sourcing Strategy - identifying and understanding in-house business needs, capabilities, and establishing a business case for strategic outsourcing. Procuring and Implementing - Define clear service levels and metrics to measure results. Focus on ensuring the service meets current and future business objectives, structure an effective Request for Proposal, and assist in the selection of and negotiations with supplier/s. Managing the service - Careful monitoring, reporting an ensuring skills and disciplines of excellent service and supplier management are applied to support a successful relationship. Renewal/Exit - Extension of existing relationships, transition assistance for buyers who wish to test the market, assistance with bringing the service in-house (in-sourcing), redefinition of services, restructuring of metrics, and assistance with renegotiation.