Wednesday, March 11, 2009

Top 10 Functions to Outsource

Most of CIOs and CTOs will be asked to trim costs and improve operational efficiencies as the economy labors through the recession. Outsourcing is one option.

Baseline Magazine discussed what functions are most suitable for outsourcing with Frank Casale of the Outsourcing Institute and Allen Weinberg of McKinsey & Company’s Outsourcing and Offshoring Practice Group. This is the resulting top ten list:
  1. Application Development. If this is new - start small with a project or two.
  2. Testing. This is good to outsource whether you outsource other parts of the process or not.
  3. Application Management. If you prefer to keep the dev team in-house, is this an option to make the organization lean.
  4. Database Management. You can often buy better expertise in this area for a fraction of price for staff.
  5. ERP. Outsourcing in this area has matured and is increasing.
  6. Help Desk. Outsourcing the entire of part of the function may cut costs and increase the service level.
  7. PC Maintenance
  8. Systems Integration. Restructuring in the market place (by mergers and acquisitions) will increase the need to integrate systems.
  9. Infrastructure Management
  10. Business Process Outsourcing (BPO).