JPAbusiness Outsourcing Checklist Welcome to the JPAbusiness Outsourcing Checklist I mproved communications and the global economy mean businesses are increasingly using outsourcing parties to drive efficiencies. Contractors, part-time and casual staff, consultants and advisers, are now common among SMEs and larger businesses alike. We ve created the JPAbusiness Outsourcing Checklist to help you determine if your business could benefit from utilising outsourcing resources. The Checklist can also be used to highlight which areas of your business are core, or critical, functions which should most likely be retained in-house.
How to use the JPAbusiness Outsourcing Checklist The checklist process is divided into four steps: o Step 1: List your business functions We ve created a list of functions and activities common to many businesses. Work through the checklist process for each business function and subset, depending on the shape and nature of your business. There is also space at the bottom of the table to write in activities and functions unique to your business. o Step 2: and give them a rating of 1 to 4 Rate how critical each of these functions is to what your business does and delivers: 1 = Not very critical 2 = Somewhat critical 3 = Critical 4 = Extremely critical To help determine the rating, consider: Is this activity a major strength in your business, your point of difference and/or a primary driver of what you do?
o Step 3: Review your ratings Take a look at your ratings and decide whether to proceed with considering outsourcing for each function. If you rated a 3 or 4 for particular business function or activity, you are probably best to focus on maintaining, sustaining and growing your business s internal capability in theses areas, for example developing your people, efficiency, business processes, quality and monitoring. If you rated a 1 or 2 for particular functions, then move on to the next step and consider your outsourcing options for those activities. o Step 4: For each function you rated a 1 or 2, consider whether outsourcing can deliver the following: 1. Cost savings, efficiencies or economies of scale 2. Reduce internal complexity 3. Improved quality and/or timing and responsiveness 4. Achieve, with documented certainty, a reliable and predictable service level 5. Leverage and tap in to an expertise level you don t have internally
JPAbusiness Outsourcing Checklist List your business functions (Use the space provided at the bottom of the table to add any activities unique to your business.) 1 = not very critical 2 = somewhat critical 3 = critical 4 = extremely critical For each function you rated 1 or 2, consider whether outsourcing can achieve the following (simply tick the box if yes or cross the box if no ): 1. Cost savings, efficiencies or economies of scale 2. Reduce internal complexity 3. Improved quality and/or timing and responsiveness 4. Achieve, with documented certainty, a reliable and predictable service level 5. Leverage and tap in to an expertise level you don t have internally Sales (online, face to face, telemarketing, direct marketing, other)
List your business functions Customer service (warranty, complaints, after-sales service, other) Marketing (relationship marketing, direct, online and digital, events, customer relationship management and loyalty programs, brand etc.) Distribution and logistics Product manufacture and/or sourcing Product and service design and innovation
List your business functions IT systems, data management and reporting Financial and business management (cash flow, invoicing and collection, credit payments, payroll, statutory and compliance accounting and lodgements, book keeping and data entry, risk management and audit, service procurement, contracts and agreements, HR and people services, financing services, insurance services) Operational management Project management General management
List your business functions Strategic and business advice (business performance, exit and succession, feasibility and viability assessments, other) Others Once you ve completed the Checklist it s time to source and evaluate outsourcing options for the functions identified above. Talk to your business advisor or contact the team at JPAbusiness if you need support in finding the right option for your business.