Successful Outsourcing in Organizations

When an organization considers outsourcing as an option, it's important that the outcome be:

• Higher efficiency
• Advanced access to strategic resources
• lower cost of doing business. 

An organization open to outsourcing broadens its network of high competency to its advantage and becomes an agile business able to compete in the ever changing business environment. Paek et, al., (2019)

In evaluating an outsourcing vendor, 3 essential success factors of the vendor are considered during the outsourcing strategy: (Delen, 2016)

• Efficient levels of communication in the vendor's organization- If the vendor's communication lines are efficient within it's organization, managing any challenges related to the outsourcing strategy are far easier
• Demand management- As an organization's demands fluctuates, a vendor should have the capacity to handle them and deliver its services effectively 
• A vendor's ability to adhere to the transition plans for smooth business operations performance during the period of transition 

An organization's decision on the specific activities to outsource should be very strategic. The benefits of outsourcing, especially financial benefits can be quickly eroded if the decision is not critically evaluated against a company's needs. Sanchís-Pedregosa et, al., (2018)

References
Delen, G.P., Peters, R.J., Verhoef, C. and Van Vlijmen, S.F.M., (2016). Lessons from Dutch IT-outsourcing success and failure. Science of Computer Programming, 130, pp.37-68. 

Paek, B., Kim, J., Park, J. and Lee, H., (2019). Outsourcing Strategies of Established Firms and Sustainable Competitiveness: Medical Device Firms. Sustainability, 11(17), p.4550.

Sanchís-Pedregosa, C., Gonzalez-Zamora, M.D.M. and Palacín-Sánchez, M.J., (2018). Outsource Services to Improve Financial Performance: Is There a Limit?. Global Business Review, 19(1), pp.21-31.