Sourcing Tip #5: Focus attention on core versus non-core work activities

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As part of its talent assessment, an organization should review those work processes that are core to its current and future strategy and examine the potential for outsourcing non-core activities. By outsourcing activities not central to the organization’s strategy, such as HR administration, IT desktop support and accounts payable administration, companies can shift these functions from a fixed to a variable cost model, making it easier to adjust costs with changes in the overall workforce size.

For example, organizations needing fewer employee call center representatives or recruiters during a downswing in their business cycle can more easily adjust their staffing levels using an outsourcer, rather than continually letting go and rehiring their own employees.

Outsourcers can also provide specialty services, such as merger and acquisition integration assistance, that would be too costly for organizations to maintain on staff. This can enable the firm to act more quickly, as well as reduce the transition time and costs associated with one-time events.