Outsource, split, fix or keep: four process verdicts

Key takeaways

Your process outsourcing options come down to four verdicts. Outsource the whole process when it scores 8 to 10. Split it when it scores 5 to 7 and has clear judgement points. Fix it first when it would score well but is undocumented or changing. Keep it when it scores 4 or below or cannot be controlled.

• Outsource: 8 to 10, stable, measurable.
• Split: 5 to 7, routine stages around a decision.
• Fix first: good candidate, not ready yet.
• Keep: 4 or below, or 0 on controllable.

When should the verdict be outsource?

Outsource the whole process when it runs in steady volume, the method is written, the output is measurable and the risk is controllable. Supplier invoice processing and first-line email support often reach this verdict. You still review results and keep any approval step.

• Which business processes should you outsource?
• End-to-end process outsourcing: when one owner wins

How do you split a process well?

Draw the process as a line of steps and mark each step routine or judgement. Give the provider runs of routine steps, and keep the judgement steps in-house, so work crosses between you as few times as possible. A good split has one or two crossing points, not five.

• Mark each step routine or judgement.
• Group routine steps into runs.
• Keep crossing points to one or two.
• Agree turnaround at each crossing point.

• The hybrid model: part in-house, part outsourced
• Rule-based vs judgement tasks: what to hand over
• Co-sourcing vs outsourcing: sharing the work

What does fix first mean?

Fix first means the process would suit outsourcing but is not ready: it is undocumented, changing or full of exceptions. Write the method, remove unnecessary steps and settle the exception rules, then score it again. Most fix-first processes are ready within four to eight weeks.

• Should you fix a process before you outsource it?
• Process maturity: is your process ready to hand over?

When is keep the right verdict?

Keep a process when it sets direction, carries personal accountability, differentiates you or carries risk you cannot contain. Keep does not mean forever. Review kept processes once a year, because volume, rules and your business all change.

• Core vs non-core activities: what to keep in-house
• Does this process win you customers? The differentiation test

What does this look like in practice?

A pattern we see: when an SME gives verdicts to its ten busiest processes, around two land on outsource, four on split, two on fix first and two on keep. Split is the most common verdict by a distance.

• See client work
• BPO Solutions for UK businesses

Verdict checklist

Record these for every process.

• The score and the weakest test.
• The verdict and the reason.
• For split: the crossing points.
• For fix first: what to fix and by when.
• For keep: the date of the next review.

• The process selection score: outsource, split or keep?
• A business process register: map every process once

Next step

Send us your list of processes with your verdicts. We will challenge the ones we would decide differently and suggest a split for any process that sits on the line.