|
 Insourcing / Outsourcing
To insource or outsource, that is the question all organizations, public or private, must answer as they look for more efficient, better quality, cost effective ways of providing products and services. In making these critical sourcing decisions, a variety of factors need to be weighed, evaluated, and considered. Contrary to popular literature, the decisions are not all about the money, although cost is, and should be, a major player in this determination. Other factors include:
· The level of control required
· The contribution to the organization’s mission
· Investment costs and risks
· The quality and availability of personnel and other resources
· Cash flow considerations
· Budget, fiscal, legal or other constraints
· Marketplace competition
Within the public sector, work that is considered “inherently governmental” (i.e., so intimately related to the public interest as to mandate performance by government personnel), cannot be outsourced. On the other hand, “commercial activities” (i.e., recurring services that could be performed by either the private or public sector) are often evaluated to determine whether it is in the taxpayer’s best interest to perform the work with government personnel or by contract.
ThinkQ can help your organization develop a business case analysis to make these tough decisions. Contact us at info@ThinkQuality.com for more information.
|
