Offshore Outsourcing
Copyright © 2003 Lyn Dellinger
December 2003 Outsourcing Page 1
Copyright © 2003 Lyn Dellinger
Offshore Outsourcing
The Challenge and the Prize
Lyn Elliott Dellinger
001-757-565-5152
LDellinger@pia-1.com
December 2003 Outsourcing Page 2
Copyright © 2003 Lyn DellingerCopyright © 2003 Lyn
Agenda
Introduction to outsourcing
The good news – growth and
market share
The bad news – cautions
The competitive edge and how to
get it
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Copyright © 2003 Lyn DellingerCopyright © 2003 Lyn
What Is Outsourcing?
Outsourcing generally refers to the practice of
farming out jobs from their home base to
other countries to cut costs.
But it is much more than that –
It is a long-term relationship for a business activity
over which the provider has significant control and
managerial discretion.
Outsourcing is using outside business resources to
perform activities and processes instead of
internal capabilities.
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Copyright © 2003 Lyn DellingerCopyright © 2003 Lyn
What do Outsourcing
Customers Want?
Highest quality work
products
Lowest possible cost
On-time delivery
Reliability
Organizational
stability
This is what all buyers expect from their Suppliers!
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Copyright © 2003 Lyn DellingerCopyright © 2003 Lyn
Why companies Outsource
Conserve Capital
5%
Foster innovation
2%
Improve Quality
5%
Increase Speed
to Market
5%
Grow Revenue
2%
Create a Variable
Cost Structure
13%
Reduce
Operating Cost
36%
Focus on the
Core of the
Business
32%
From: Information Week
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Copyright © 2003 Lyn DellingerCopyright © 2003 Lyn
Agenda
Introduction to outsourcing
The good news – growth and
market share
The bad news – cautions
The competitive edge and how to
get it
