The outsourcing agent selected has to be one that allows the company in question to worry less about the outsourced operations and divert more resources towards core business operations (Lankford & Parsa, 1999). This is because of the fact that unless attention is freed and an increase in the concentration of focus is observed, there is very little indication that efficiency will experience any increase at all.
The outsourcing agent has to be one that is well aware of and in the habit of developing and reporting performance figures on a periodic basis. This will save the company time and energy that it would otherwise have to spend in monitoring the outsourcing agent’s performance for the outsourced product. In this regard, it is imperative to highlight the need for the outsourcing agent to be fully equipped and certified for its operations through the relevant authorities. This will serve to further ensure that the outsourcing agent will not turn out to be a liability in strategic terms.
For instance, in the case of an assembly plant, it would make sense if the production of the parts were to be outsourced. The labor will therefore have more time to devote towards the assembly of the final product and the assurance of the quality of the end product, thereby allowing the end product to be higher in terms of quality and standard. In contrast, if an assembly line was to outsource part of its assembly operations, it would find itself in an increasingly difficult position wherein more resources would have to be diverted towards ensuring that there is adequate coordination between the outsourced processes of the assembly line and the processes still being performed by the assembly line’s staff.