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:
- Application Development. If this is new - start small with a project or two.
- Testing. This is good to outsource whether you outsource other parts of the process or not.
- Application Management. If you prefer to keep the dev team in-house, is this an option to make the organization lean.
- Database Management. You can often buy better expertise in this area for a fraction of price for staff.
- ERP. Outsourcing in this area has matured and is increasing.
- Help Desk. Outsourcing the entire of part of the function may cut costs and increase the service level.
- PC Maintenance
- Systems Integration. Restructuring in the market place (by mergers and acquisitions) will increase the need to integrate systems.
- Infrastructure Management
- Business Process Outsourcing (BPO).