Rock Ledge Resources > Jerry Hammann > Representative Project - Build, Buy Or Outsource

Build, Buy Or Outsource

Business Challenge

For every business process, a company must determine the best approach to meet the process objectives, and how to measure results. Depending on the objectives, the criteria might be low cost, timeliness, quality, flexibility or responsiveness. A company paid over $200 million annually to a business partner to provide business and technology support and wanted to evaluate the relationship to determine whether it would be better off in-sourcing these processes, outsourcing them to another partner or keeping and/or modifying their existing business relationship.

Solution

When evaluating a prospective new process or relationship or a wellestablished existing one, creating useful measures of performance and gathering accurate data to qualitatively and/or numerically determine and validate a performance measure is challenging. A Rock Ledge Resources principal was engaged to assist in evaluating an existing business process and technology outsourcing relationship and comparing the relationship, both as existing and as potentially-improved, to other qualified prospective outsourcing partners and to an in-sourcing alternative. As part of these activities, the principal also calculated the costs and risks associated with transitioning away from the existing outsourcing partner.

Results

After evaluating the potential disruption, risks and costs associated with moving its business processes from its current partner, the company determined that a better and less risky opportunity existed in strengthening its relationship with its existing partner. The strengthened relationship greatly contributed to the future growth and success of the company.

Relationships: Jerry Hammann | Business and Strategic | Technology