WHICH IS YOUR REAL OUTSOURCING DIRECT AND IN-DIRECT COSTING?

Here is a list of the main factors which it would be advisable to consider during an outsourcing benchmarking effort and in parallel cost of internal resources analysis.

OUTSOURCING benchmarking: have you checked for each of your vendor:

1. average scholarship and experience duration/ quality of the usual specialist who will assist you during daily activities ?
2. average scholarship and experience duration/ quality of the usual consultants who will assist you during daily or extraordinary activities ?
3. average language skills of both ?
4. time availability of the same and average clients workload ?
5. in office or out of office activities of the same ?
6. level of responsibility of the same and motivation ?
7. satisfaction or dissatisfaction of their job duties ?
8. their written work procedures and internal / external training quality ?
9. the level of access to the I.T. infrastructure including your data and other HR related informative and legal data ?

If this might look a too heavy analysis, try to ask yourself these 3 questions:

• If this would be advisable for an internal resource, why should this not be done for an external one doing the same job by a service provider?
• Any reason why an external vendor should renounce to a profit share if there is no external control from the client, if the main company goal is 'growth' at any cost as it often happens in many multinational companies ?
• Is it easier to bind a client with contractual clauses and long term contracts durations, or to grant to the same a full transparency and participation to decisions in a flexible service agreement ?

TOTAL cost of internal resources:

1. risk of turnover
2. cost of recruitment and selection
3. risk of unforeseeable absences (sickness, work accidents, maternity, parental leaves, personal reasons etc.)
4. management of shifts for ordinary or national/bank holidays
5. automatic salary increases and careers management
6. training courses and training absences costs
7. low performance cases and group interactivity inefficiencies
8. pure cost of benefits and benefits planning
9. time for relations with benefit suppliers
10. cost of salary and benefits administration
11. cost of disciplinary relationships
12. cost for documents sharing and opinion/ evaluation meetings
13. cost of employee's travel.