As demonstrated by the variety of factors and risks that need to be
taken into account in the three pillars, the decision of in-house versus
outsource should not be made without careful analysis. The CPO is
essential to making sure that this analysis is initiated and conducted
diligently and objectively. This will put some strain on CPOs and their
organizations, and new capabilities will be required. But by viewing the
process as a logical extension of the procurement role, both the CPO
and the purchasing department will be able to handle the new
responsibilities with a high level of skill.
Although the choice to keep an activity in-house or use an outsourcer
may be cross-functional and strategic, it is the role of the CPO and the
procurement function to make any outsourcing decision work.
Consequently, purchasing executives should not be passive about
making sure that their input is clearly articulated.