Strategy: Business and Revenue Models

So you like the idea of focusing on your core competencies while outsourcing some of your noncore business processes. The next step is figuring out which processes are noncore, what they are costing you today, and the value created from outsourcing them.

Offshore strategy and opportunity evaluation is the natural first step when businesses explore whether offshore delivery in low-cost countries makes business sense. Experience informs us that incremental approaches work best.

If you don't know really know where you are going, you won't get there quickly. Offshore strategy formulation involves the following five steps:

1. Determine specific outsourcing goals and objectives
2. Create an insource versus outsource decision framework
3. Identify and prioritize potential outsourcing opportunities
4. Develop detailed business case including the business model
5. Identify key sponsors and stakeholders

Increasingly, a key part of offshore strategy formulation is business process analysis and deconstruction - the ability to take tightly integrated process chains that define modern business - and reconfigure them so that pieces can be offshored.

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