The decision to outsource is usually based on two business factors: value proposition and market-based outsourcing. The most common value proposition is creating cost savings, but others such as increasing operational efficiency, improving customer service and employee satisfaction, or reducing capital expenditure are often more telling.
Market-based outsourcing is a comparison between internal skills and abilities, and the capabilities of providers in the marketplace. The decision to outsource is based on whether an external provider can do the job better, cheaper or faster than an internal team. In our ‘CRE - Our industry today, tomorrow & beyond’ report I break down the ways to ensure those relationships are productive and generate value for the long term.