Commonly Outsourced Business Functions

Sources: - Survey of Members of The Outsourcing Institute, 1998 - Experience of ALTEX GROUP to August 1999
Organizations contacted in 1998 by The Outsourcing Institute disclosed functions they were then outsourcing, and those they were considering outsourcing in the near future. Most industries were represented, including governments and related agencies, manufacturing, distribution, communications, healthcare, universities and colleges, advertising, entertainment, and brewing. Organization size ranged from small-to-medium (up to 499 employees) to very large (over 10,000 employees). Sixty percent of respondents were executives.

Loss Prevention
Executives are currently outsourcing:
1.) Customer Satisfaction Audits & Training
2.) Organizational Transitions / Change Management
3.) Information Technology Systems - Audits & Integrations
4.) Management Compliance ("Due Diligence") - Audits & Training
5.) Business Systems Audits & Re-Alignments
6.) Conflict Management
7.) Alternative Dispute Resolution
8.) Litigation Cost Management
9.) Strategic Plan Audits, Re-Positioning, and Updates
10.) Leadership Succession Planning / Management Skills Development / Personal Coaching
11.) Insurance - Property, Casualty, Performance Bonding, Life, and Group Benefits & Pension Plans

Human Resources
Executives are currently outsourcing:
12.) HR Management Strategy Consulting & Training
13.) Staffing (Core, Leased, Contract, & Temporary), including Executive Search & Management Recruitment
14.) Payroll Services including all Gov't Relations, Benefits Administration, and Claims Management
15.) Occupational Health & Safety
16.) Workers' Compensation Administration
17.) Government Agency Relations
18.) Performance Management
19.) Employee / Labour Relations
20.) Career Coaching & Mentoring, and Personal Issues Counseling
21.) Employment Termination and Job Search Counseling
22.) Human Resource Information Systems

Marketing
Executives are currently outsourcing:
23.) Advertising
24.) Market Research, Focus Groups, Project Strategy Development, Design, & Delivery
25.) Relationship Management: Customers/Clients, Suppliers, Employees, Shareholders, Media, and the Public
26.) Website & Portal (i.e. - search engine) Design & Production
27.) Telemarketing
28.) Direct Mail
29.) Reservations & Sales Operations
30.) Field Sales
31.) Field Service
32.) Field Service Dispatch
33.) Telephone Customer Support
34.) Special Events Management (e.g. - Product Launches, Annual Meetings, Receptions, etc.)

Executives are considering outsourcing:
35.) Customer Service Information Systems

General Administration
Executives are currently outsourcing:
36.) General Management Consulting
3 7.) Key-Person Training & Development
38.) Business Management Systems & Training
39.) Organizational Change / Transitions Management
40.) Transportation Logistics
a) Operations
b) Freight Audit
c) Consulting and Training
d) Information Systems
41.) Distribution
a) Freight Brokering
b) Warehousing
42.) Fleet Management
a) Fleet Leasing
b) Fleet Operations
c) Fleet Maintenance
43.) Food And Cafeteria Services
44.) Facilities Planning
45.) Facilities Maintenance
46.) Facilities Management
47.) Purchasing / Materials Management
48.) Inventory Management
49.) Records Management & Storage
50.) Security
51.) Printing And Reprographics
52.) Mailroom

Executives are considering outsourcing:
53.) Facilities Information Systems

Finance & Accounting
Executives are currently outsourcing:
54.) Accounting Systems and Training
55.) Accounting Services
56.) Transaction Processing
57.) Tax Management

Information Technology
Executives are currently outsourcing:
58.) Maintenance/Repair
59.) Training
60.) Applications Development
61.) Consulting and Re-engineering
62.) Mainframe Data Centers
63.) Client/Server
64.) Networks
65.) Desktop Systems
66.) End-User Support
67.) Complete Information Technology Services

Ken Heard, CHRP is President of ALTEX GROUP - Management Consultants, author of the "FIT-Best Practices Management System," founder of OUTSOURCING.SolutionsOnCall, and an authorized distributor of the Co-Pilot Coaching System and Carlson Learning Products. Ken is a regular contributor to businessmatch-maker.com.