© 2004 Sixhills Consulting Perspectives on Technology OutsourcingWhy Outsource?While traditionally outsourcing has been used to improve basic service delivery (e.g., by reducing costs), it has potential to assist in more fundamental business change,... Facilitate accelerated change• Make continuous improvements• Make change a way of lifeTackle the fundamental business structures• Change the structure of costs and service• Make simultaneous improvements in cost and qualityImprove base level performance parameters• Improve service levels• Reduce costs –Improve qualityIncremental UpgradeSystem Replacement /IntegrationMajor TransformationDEGREE OF TECHNOLOGY CHANGEPHASES OF BUSINESS CHANGEOutsource non core activities• Reduce costs– Improve serviceOutsource critical path activities• Introduce new skills• Introduce new technologiesDevelop alliances/ partnerships with leading edge providersLinking Business and Technology Change DimensionsP1
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