How do you develop and retain your core competencies and capabilities after outsourcing?

2 Choose the right outsourcing partner

Once you know your core competencies and capabilities, you need to find an outsourcing partner that can complement them and support them. You don't want to outsource something that is critical to your core business or that could compromise your quality, reputation, or innovation. You also want to choose a partner that shares your values, vision, and culture, and that can communicate and collaborate effectively with you. You need to establish a trust-based relationship and a clear contract that defines the scope, expectations, roles, and responsibilities of both parties.

3 Invest in knowledge transfer and training

One of the risks of outsourcing is losing the knowledge and skills that are essential to your core competencies and capabilities. To prevent this, you need to invest in knowledge transfer and training, both for your internal staff and your outsourcing partner. You need to document and share the best practices, processes, standards, and tools that are related to your core business. You also need to provide training and feedback to your outsourcing partner to ensure that they understand and follow your requirements and specifications. You need to create a culture of learning and continuous improvement.

4 Monitor and evaluate the performance and outcomes

Another risk of outsourcing is losing control and visibility over the performance and outcomes of the outsourced function or process. To avoid this, you need to monitor and evaluate the results and the impact of outsourcing on your core competencies and capabilities. You need to set up key performance indicators (KPIs), metrics, and benchmarks that measure the quality, efficiency, effectiveness, and customer satisfaction of the outsourced service. You also need to collect and analyze feedback, data, and insights that can help you identify gaps, issues, or opportunities for improvement.

5 Adapt and innovate

Outsourcing is not a one-time decision or a static arrangement. It is a dynamic and ongoing process that requires constant adaptation and innovation. You need to be flexible and responsive to the changing needs, expectations, and preferences of your customers, markets, and stakeholders. You need to review and update your core competencies and capabilities regularly and ensure that they are relevant, valuable, and distinctive. You also need to leverage the expertise, resources, and networks of your outsourcing partner to create new solutions, products, or services that can enhance your competitive advantage.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?