ABSTRACT
Phase 1: Analysis and Evaluation To understand the services that need to be outsourced, organizational goals need to be identified, particularly the core competencies. Once the goals and core competencies are identified, information related to these activities is gathered to compare the cost of performing the functions in-house with the cost of outsourcing them. This enables the company to answer nonfinancial questions such as “how critical are these functions or activities?” or “what are the dependencies on these activities?” or “will this activity become mission-critical?” These questions will help organizations take decisions about whether or not to outsource. Long-term cost and investment implications, work morale, and support should also be considered.
