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1 | THE MAKE OR BUY DECISION
The Make or Buy DecisionPhil Searle, Founder & CEO of Chazey Partners, discusses Shared Services and Outsourcing and how to make the right decision regarding a services delivery model
2 | THE MAKE OR BUY DECISION
Internal Shared Services Business Process OutsourcingExisting processes Not yet standardized, minimal
automation, complex, distributed, immature controls
Already standardised, automated, centralized, in a stable control environment
Skilled labor Lack of skilled labour in areas where BPO potentially located
BPO provider has expertise
Time Zone/Language Just-in-time service and local dialects requirement of service
Time zone, accents and language not a significant factor
Term BPO provider’s minimum term is too restrictive and future plans
BPO providers and minimum term does not restrict future plans
Volume Too small to demand significant BPO provider of attention
Significant enough to be a major client of BPO provider
Process Re-Engineering Only portion of process in scope, reducing ability to re-engineer end-to-end & improve
Portion included in-scope does not hamper potential re-engineering
BPO Provider Reputation Potential BPO has insufficient reputation and robustness
BPO is a reputable and robust
BPO Location Risks Political & other risks significant Risks mitigated, including disaster recovery considerations
Flexibility BPO requires fixed volume commitment
BPO can flex up/down in volume, scope & complexity
Communication Risks around access, security, confidentiality & associated costs
Ability to mitigate communication risks
3 | THE MAKE OR BUY DECISION
4 | THE MAKE OR BUY DECISION
6 | THE MAKE OR BUY DECISION
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7 | THE MAKE OR BUY DECISION
Chazey Partners
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Rob Serjeant Managing Director, Asia-PacificChazey [email protected]
