If, after these questions are answered, outsourcing is chosen, CPOs can
work with the business unit to find the right partner. Pivotal indicators
such as business strategies, manufacturing and engineering capabilities,
CPOs should
lead business
units in
conducting
detailed analyses
that thoroughly
evaluate the
costs, benefits,
risks, and
rewards of
outsourcing.
6 Strategy&
design and innovation skills, labor costs, staff skills, employee training
programs, the ability to scale, capacity utilization, and the social
policies of the potential partner must be assessed. In addition, the risks
in outsourcing must be accurately gauged, whether they relate to the
supply chain or to proprietary technology and intellectual property