Before starting to outsource it is important to make an analysis of the current organisation and what are the objectives for the future strategy. This can be done with an organization scan or also called audit.

When the objectives are determined, it can be decided which activities or processes can be outsourced. Business analysts and information analysts can assist this process. The business analyst will answer questions such as which processes and / or activities are present. The information analyst will look at how the processes or activities are designed.

One of the advantages to using an external analyst to investigate the internal processes is to get an unbiased insight in the internal processes. This enhances the effectiveness to make changes.

When the processes are clearly mapped, business cases are established. By designing different alternative business cases it is possible to get insight in the different possibilities of the to be outsourced activities. These business cases include also the risks and costs involved. This part of the outsourcing path is called sourcing planning.

The procurement phase is the selection process to find the right provider for the sourcing needs. This process includes a “Request for Information” (RFI) and a “Request for Proposal”. In general, in the RFI the first selection is effectuated under potential providers. Within the RFP phase the selected providers are requested to make an offer for the solution. Based on the proposal (a) provider(s) is selected to continue to work with. It is possible to test the proposal by means of a pilot project.

In the next step, the transition of activities or processes takes place. A structured work process is designed between the outsourcer and external provider. In this process it is important to work with project managers to ensure a good guidance of the sourcing project.

If the sourcing work is transferred or developed by the provider

The purpose of outsourcing is to increase your service level within your organisation. This is were it all started with it and it does not end here. Processes and activities are constantly changing and therefore it is important to monitor and manage your relation with the provider. Within the transition phase, change management, service level management is already initiated and this is an ongoing process in the contract management phase.