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Review Your OUTSOURCING Arrangement
How well does your company outsource strategically
How well does your company outsource strategically
How well does your company outsource strategically
How well does your company outsource strategically
How well does your company outsource strategically
How well does your company outsource strategically
1.
What is the primary reason your company outsources?
Cost advantage
Capability Building
Strategic corporate modularization
Market Access
Other
2.
What percentage of your total cost base is outsourced?
Less than 10%
11% to 25%
26% to 50%
51% to 75%
More than 75%
3.
Is your company outsourcing some things it should not be outsourcing?
Yes, more than 50% of the things we outsource should not be outsourced
Yes, between 30% and 50% of the things we outsource should not be outsourced
Yes, between 10% and 30% of the things we outsource should not be outsourced
Yes, but less than 10% of the things we outsource should not be outsourced
No
4.
Is your company not outsourcing some things it should be outsourcing?
Yes, more than 50% of the things we outsource should not be outsourced
Yes, between 30% and 50% of the things we outsource should not be outsourced
Yes, between 10% and 30% of the things we outsource should not be outsourced
Yes, but less than 10% of the things we outsource should not be outsourced
No
5.
Which of the following are myths and which are reality?
If the outsourcing does not work out, you can easily bring it back in house.
Myth
Reality
The smartest people in the game work for the service providers
Myth
Reality
The smartest people in the game work for the client side
Myth
Reality
Once you outsource you can relax and let them handle all the work
Myth
Reality
All outsourcing should be an equal win-win partnership
Myth
Reality
Your service providers is responsible for their own mistakes
Myth
Reality
Lock in the contract and squeeze out the last penny out of your service provider
Myth
Reality
How well does your company outsource strategically
6.
How well does your company visualize how the life will change after outsourcing?
Not at all
Somewhat
Clearly
Precisely, and in great detail
7.
How well is the budgeting for outsourcing projects ‘massaged’ to gain the ‘right’ decision?
Significantly
Somewhat
Rarely
Never
8.
How clear are the service provider selection criteria and how well are they agreed by everyone in the selection process?
Clarity
Not at all
Somewhat
Clearly
Precisely, and in great detail
Consensus
Significantly
Somewhat
Rarely
Never
9.
How clear is the selection process and how well is the process agreed prior to going to the market?
Clarity
Not at all
Somewhat
Clearly
Precisely, and in great detail
Consensus
Significantly
Somewhat
Rarely
Never
10.
How well are the expectations from outsourcing managed before, during and after the outsourcing process?
Expectations management before outsourcing
Not at all
Somewhat
Clearly
Precisely, and in great detail
Expectations management during outsourcing
Not at all
Somewhat
Clearly
Precisely, and in great detail
Expectations management after outsourcing
Not at all
Somewhat
Clearly
Precisely, and in great detail
How well does your company outsource strategically
11.
Does your company lose control during the implementation process and let the service provider take more initiative?
Always
Frequently
Seldom
Never
12.
How well does the company manage the transition from current state to future state?
Very well
Somewhat good
Barely
Not well managed
13.
How are KPIs selected for ongoing management of outsourcing relationship?
Same as peer group, or others in the industry do
Based on previous experience of the personnel
Vendors suggest several KPIs and we pick the most relevant ones
Work closely with Vendor to configure the KPIs
Go back to strategic objective of outsourcing and link KPIs to them
14.
Refer to figure 5.2 and reflect what is your company’s inclination to use a single formulaic approach for all outsourcing success?
Very likely
Somewhat likely
Somewhat unlikely
Very unlikely
Never
15.
How well does your company standardize, homogenize and modularize the total workscope before embarking on outsourcing strategy?
Very well
Somewhat good
Barely
Not well managed
How well does your company outsource strategically
16.
Refer to figure 6.2, what percentage of time does your company spend on the preparation phase?
More than 9 months
Between 6 and 9 months
Between 3 and 6 months
Less than 3 months
Do not know
17.
How does your company prepare RFP (request for proposals) that are sent out to vendors?
Use existing library of RFPs inside the company
Relevant personnel bring RFPs from previous jobs
Custom design RFP for each outsourcing
Vendor engagement strategy is customer designed for each outsourcing
Ask vendor to help design the right documentation
18.
Which of the following common mistakes you have noticed during the vendor selection process within your company?
Not using a pre-agreed vendor selection process and criteria
Very likely
Somewhat likely
Somewhat unlikely
Very unlikely
Never
Insufficient attention to non-quantifiable criteria
Very likely
Somewhat likely
Somewhat unlikely
Very unlikely
Never
Insufficient clarification of ambiguities leading to assumptions about vendors’ capabilities
Very likely
Somewhat likely
Somewhat unlikely
Very unlikely
Never
Too much price focus, and not enough total cost of ownership (TCO) thinking
Very likely
Somewhat likely
Somewhat unlikely
Very unlikely
Never
Missing out steps in a multi-step filtration process due to lack of time at the end
Very likely
Somewhat likely
Somewhat unlikely
Very unlikely
Never
Asking too much irrelevant information from the vendor
Very likely
Somewhat likely
Somewhat unlikely
Very unlikely
Never
19.
During the vendor integration phase (implementation) who leads the process?
Vendor, because they have more experience with their products
Our process team, because they have more experience with the process itself
Both equally – because both are experts in their respective areas
Our business team – because they need to ensure that original objectives of the outsourcing are kept paramount throughout the implementation process
20.
During the final value creation phase, how often do you use rewards and penalties to encourage vendor performance?
Only rewards
Only penalties
Both – rewards and penalties
Neither
Entire vendor remuneration is performance based
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