Framework for In-House vs. Outsourcing Decisions PPT
This PPT slide, part of the 68-slide Proposal for Organizational Restructuring (Big 4) PowerPoint presentation, presents a framework for evaluating the decision to keep functions in-house versus outsourcing them, utilizing a capability mapping approach commonly employed by consulting firms. It categorizes various business functions and activities based on 2 key dimensions: economies of scale and strategic importance.
On the vertical axis, "Economies of Scale" ranges from low to high, indicating the potential cost benefits associated with scale in delivering specific functions. The horizontal axis represents "Strategic Importance," also ranging from low to high, which assesses how critical a function is to the organization’s core strategy and operations.
The slide identifies several general functions, including IT systems, facilities management, and HR, alongside quality and technical functions such as regulatory affairs and project management. These functions are positioned within the activity matrix, suggesting that functions with high strategic importance and high economies of scale may be better suited for in-house management. Conversely, those with lower importance and scale may be considered for outsourcing.
Specific activities are highlighted, such as "Consider Outsourcing or Discontinue," which suggests a proactive approach to evaluating less critical functions like canteen services and facility management. The framework also emphasizes the need for individual consideration in decision-making, particularly for functions that may not fit neatly into the matrix.
This structured approach aids organizations in making informed decisions about resource allocation, ultimately enhancing operational efficiency and aligning capabilities with strategic goals. The illustrative nature of the slide indicates that it serves as a guide rather than a definitive answer, encouraging further analysis tailored to the specific context of the organization.
This slide is part of the Proposal for Organizational Restructuring (Big 4) PowerPoint presentation.
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Strategy Development Example Restructuring Project Management Facility Management Facilities Management
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