Outsourcing Matrix

The Outsourcing Matrix is a valuable tool to companies that have decisions to make regarding where processes should be sent to be completed. The matrix considers both how complex each process is and how important it is on a strategic level.

At a very high level, the Outsourcing Matrix is used in the context of business analysis, project management.

Outsourcing Matrix

What is the Outsourcing Matrix?

A visual explanation is shown in the image above. The Outsourcing Matrix can be described as a matrix with the following quadrants:

  1. High Complexity; Low Importance: Contains tasks that should be sent to an outside entity to be completed, such as accounting services.
  2. High Complexity; High Importance: Contains tasks that should be managed and completed within the company, such as management. These tasks should never be outsourced as they are very important.
  3. Low Complexity; Low Importance: Contains tasks that should be 'outsourced' or sent to automated systems to be completed, such as payroll processes.
  4. Low Complexity; High Importance: Contains tasks that should entail either a careful, effective outsourcing method or automation, such as core production methods.

What is the purpose of the Outsourcing Matrix?

To outsource or not to outsource- this is a decision that every growing company must make at some point. The Impact Matrix can help. The Impact matrix has two criteria on its axis – process complexit, and importance of process to the company.

There are many tools available that assist in making decisions such as these, but rarely will you find one that embraces such a simple and intuitive approach. The matrix follows a general rule: processes that are most important to the functioning of your company and are overly complex should be kept within your management. When processes such as these are sent out to be completed at another location, any mistakes made can be dangerous to the company. However, processes that are not as critical to the company's proper function and are not complex can be safety outsourced/automated.

It is always wise to make careful and educated decisions when considering the well-being of a company. Try the Outsourcing Matrix to make a positive impact in your company, today!


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What templates are related to Outsourcing Matrix?

The following templates are categorized as business analysis, project management and are therefore related to Outsourcing Matrix: PICK Matrix, Quadrant Analysis, Risk Analysis Matrix, Risk Value Matrix, TOWS Analysis Matrix, Innovation Management Matrix, PESTLE Analysis Template, Product/Market Matrix. You can browse them using the menu above.

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