© 2004 Sixhills Consulting In vs. OutThe universe of resources called upon by an organisation may be categorised into four broad groups…Perspectives on Technology Outsourcing“In vs. Out” – Resource Grouping Decision PathKey Elements to Factor in• Materiality of expense, in aggregate• Cross-category economics• Switching costs• TaxesInternal Function?Internal Function?Business Shared?Business Shared?Corporate?Corporate?Generic Business Need?Generic Business Need?Customisation Need?Customisation Need?Customised SharedCustomised SharedStandard SharedStandard SharedIII. Market DisciplinedIII. Market DisciplinedCorporate GovernedCorporate GovernedBusiness UniqueBusiness UniqueOut-sourceable?Out-sourceable?II. Internal SharedII. Internal SharedNoNoNoNoNoNoYesYesYesYesYesYesIs ItInternal and External ResourcesI. Single-Entity Driven (Corporate-wide function or single business groupIV. Critical SharedKey resource groupsResource NeedP3
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