Overlooked Costs, Business Strategy are Key Elements of Outsourcing Analysis
Numerous research organizations including Forrester Research and Gartner, as well as business experts like Geoffrey Moore agree that outsourcing non-core functions like billing, is cost effective and makes good business sense. In many Total Cost of Ownership analyses, a number of capital costs and opportunity costs are routinely overlooked, making it hard to secure an accurate comparison.
But there is an even more fundamental business consideration regarding the decision to select an outsourcing partner for billing and OSS services: Is billing a core competitive activity for your business?
Businesses need to maintain control over those things that differentiate them from their competition. At the same time, they should also look at activities that represent high risk and minimal opportunity for differentiation as prime candidates for outsourcing to a proven expert.