1.1. Standards
1.0 Defi ning and Communicating Outsourcing as a Management Practice
1.1 Ability to defi ne outsourcing in terms easily understood by individuals at all levels of the organization and by
outside stakeholders, including shareholders and the public at large. This includes:
1.1.1 Identify business models and change agenda that will end up driving a decision for a change in the business model (e.g.
focusing on core functions)
1.1.2 A working defi nition of outsourcing that is consistent with generally accepted concepts as commonly used by professionals
within the fi eld
1.1.3 Establish defi nition of common outsourcing terms such as BPO, ITO, forms of outsourcing (transactional, transitional and
transformational) and provide differentiation between outsourcing and offshoring, out-tasking
1.1.4 A framework for comparing and contrasting outsourcing and other forms of outside business relationships, such as suppliers,
contractors, temporary and supplemental staffi ng, strategic alliances, and joint ventures. Characteristics to be considered
include: costs, benefi ts, risks, advantages, etc.
1.1.5 Identify and understand various recent developments that may/will impact outsourcing and defi ne terms such as Cloud
Computing, Bundled Sourcing, Rural Sourcing, Consortium Sourcing
1.1.6 Defi ne and understand the concepts of “outsourcing portfolio management” and its impact on sourcing strategies
1.1.7 A working knowledge of all commonly used professional terms as defi ned, for example, in the Outsourcing Professional Body
of Knowledge (OPBOK).
1.2 Ability to identify market potential, availability of services and service providers and case studies for various
outsourcing opportunities, including: benchmarking, utilizing market knowledge in helping to defi ne outsourcing
strategy and direction for the organization
1.2.1 Identify market size and economic impact of outsourcing on business
1.2.2 Ability to identify viability of offshore destinations and specifi cally to be able to discuss strengths and weaknesses of leading
offshore destinations
1.3 Ability to defi ne the business drivers, timeframes, and commonly anticipated benefi ts of outsourcing in terms
easily understood at all levels of the organization and by outside stakeholders, including the public at large.
This includes:
1.3.1 External business drivers, such as, competition, globalization, technology, regulation and deregulation, economic, political and
others.
1.3.2 Internal business drivers such as process improvement, competition for resources, competition for capital, core versus noncore
considerations, mission criticality, etc.
1.3.3 Common benefi ts, including: cost savings (direct, indirect, cost avoidance), improved focus, more variable cost structure,
access to skills not available to the organization internally, reduced capital requirements, improved management focus,
innovation, speed to market, etc.
1.3.4 Timeframes for realizing these benefi ts based on market conditions and the organization’s business plans and capabilities.
1.4 Ability to identify and develop organizational solutions to address the business drivers and provide clear
differentiation between outsourcing and creating an inter/intra organizational solution (such as shared services)
1.4.1 Clearly identify similarities and differences between shared services and outsourcing
1.4.2 Provide management guidance on the benefi ts / shortcomings of outsourcing and/or inter-intra organizational solution
1.5 Ability to identify the common challenges that impede organizational success with outsourcing, including:
1.5.1 Setting realistic expectations; choosing the opportunities for outsourcing with the highest probability of delivering the intended
results; choosing the most qualifi ed providers; crafting a balanced relationship that offers sustainable benefi t to customer
and provider alike; properly managing outsourcing’s organizational impacts; managing the ongoing relationship, including its
disengagement.
Table 1.1: Standards for defi ning and communicating outsourcing