Introduction

Large corporations have always been on the forefront of building on the scale or scope of outsourced work and adopting next generation outsourcing initiatives. These corporations continue to leverage new locations, extend functional scope, and test alternate sourcing models. Understandably, the outsourced portfolios that they manage become increasingly complex.

We have observed that complex portfolios may lead to redundancies, lack of checks and balances, and complicated sourcing governance, thereby significantly undermining the outsourcing benefits. Everest Group’s proprietary Outsourced Portfolio Rationalization methodology has been successful in resolving this problem at the grass root level thereby ensuring as high as 20% incremental gains from outsourcing.

This viewpoint highlights a real life client situation and describes how Outsourced Portfolio Rationalization helped unlock efficiencies in the sourcing arrangement.