Transformational Outsourcing
Encyclopedia
Transformational outsourcing (TO) is described as the transformation of business processes, that combines cost reductions with flexibility and value creation.
The focus of TO is on long-term improvements in business performance in all organizational levels, measurable results and an established partnership between the executive parties.
The success of TO is based on a collaborative effort to optimize the supply chain
and overall business performance. Optimizing the relations with its partners/suppliers is a key aspect in improving the entire supply chain performance, a key success factor in realizing sustainable value creation.
TO is best applicable to an organization with an enterprise architecture
(EA). Without this sound, flexible and adaptive business architecture, there is no possibility for applying TO.
- Focus
The focus of TO is on long-term improvements in business performance in all organizational levels, measurable results and an established partnership between the executive parties.
- Success
The success of TO is based on a collaborative effort to optimize the supply chain
Supply chain
A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to...
and overall business performance. Optimizing the relations with its partners/suppliers is a key aspect in improving the entire supply chain performance, a key success factor in realizing sustainable value creation.
- Appliance
TO is best applicable to an organization with an enterprise architecture
Enterprise architecture
An enterprise architecture is a rigorous description of the structure of an enterprise, which comprises enterprise components , the externally visible properties of those components, and the relationships between them...
(EA). Without this sound, flexible and adaptive business architecture, there is no possibility for applying TO.
See also
- Information logistics
- Business process outsourcingBusiness process outsourcingBusiness process outsourcing is a subset of outsourcing that involves the contracting of the operations and responsibilities of specific business functions to a third-party service provider. Originally, this was associated with manufacturing firms, such as Coca Cola that outsourced large segments...
- OffshoringOffshoringOffshoring describes the relocation by a company of a business process from one country to another—typically an operational process, such as manufacturing, or supporting processes, such as accounting. Even state governments employ offshoring...
- Enterprise architectureEnterprise architectureAn enterprise architecture is a rigorous description of the structure of an enterprise, which comprises enterprise components , the externally visible properties of those components, and the relationships between them...