Intense global competition is forcing every companies to look critically at all aspects of non-core operation in order to reduce costs and become more competitive. Hiring outside agencies to take over specific non-core tasks or departmental management has implications beyond mere cost saving. It requires an examination of a company's core goals and the most efficient way of fulfilling them. Non-core departments worldwide are under pressure to reduce costs, cut headcount, take on new work and improve the quality to their performance. There is growing realization that the benefits of re-engineering non-core processes are inevitably limited and that company-division outsourcing might be a better alternative. The question for many non-core departments is not whether to company-division outsource but how and what.
But company-division outsourcing is not panacea. It must be considered within the context of the overall strategy and resources. company-division outsourcing is like delegation, it is a matter of picking the right person, training them and giving clear boundaries.
