Outsourcing vs Insourcing 5 points to consider?

 

motivations to outsource

Source: Deloitte Global Outsourcing Survey 2016

Strategic outsourcing and insourcing has been an important factor of sustainable business growth for many RTOs. Whether it be your IT including SMS/LMS, Accounting, Marketing or HR services, or maybe even compliance or specialist training and assessment services, what works well for one RTO may not necessarily work well for another.

The traditional decision tool for outsourcing (below) from a supply chain perspective considered the importance of the business activity in relation to your organisations effectiveness. The most recent Deloitte Global Outsourcing Survey also helps us to understand the motivations for outsourcing (above).

 

traditional insource versus outsourcing model

If you are weighing up your options, you may need to carefully consider the following 5 points:

  1. Costs savings (can we really do it cheaper including all hidden costs and on costs?)
  2. Quality and compliance impacts (can we improve certainty of outcomes?)
  3. Core-business capabilities and expertise (do we really need to be good at this or something else?)
  4. Risk and innovation/change appetite (Just like chocolate - resistance is futile! If you do what you have always done, you will get what you have always got)
  5. Customer experience (how can you support your staff to meet current and future expectations?)

insourcing outsourcing

A hybrid arrangement that partners both internal and external expertise and resources may also be a realistic option for your RTO to secure a sustainable future in a competitive VET market within a disruptive and sharing economy.

If you are looking for ways to outsource, insource or hybridise RPL services to improve your RTOs performance, please contact us for further information and a discussion about partnering opportunities.

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23 October 2017 © Russell Savage, WWW RPL Solutions founder, RPL123® architect and co-author of Recognition of Prior Learning (RPL): A Practitioner’s Guide(a free resource that can be downloaded from www.rpl.solutions.)