Outsourcing versus Out-tasking
CGI delivers outcomes your business can count on.
With 30+ years in the IT business, we’ve seen our share of trends – such as the emergence of out-tasking as a popular alternative to traditional outsourcing. Yet out-tasking often leaves organizations with eroding savings. The model offers no incentive to lower costs, enhance productivity and achieve operational excellence.
With CGI, clients benefit from a true outsourcing model. We assume the risk and take responsibility for service. Rather than paying for inputs, clients get outcomes.
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It’s all about effectiveness (outcomes)
vs. efficiency (inputs)
| Outsourcing (effectiveness) |
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Out-tasking (efficiency) |
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Dimensions
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Client purchases a level of services for groupings and technologies |
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Service level agreements |
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Service level and environment drive number of resources |
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Spend = fixed fee for service level |
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Dimensions
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Client purchases FTE hours at agreed upon unit rate |
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Customer manages number of resources |
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FTE allocation based |
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Spend = hours consumed X rate |
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Provider value model
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Deliver service levels at a cost below fixed service fee |
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Focus on productivity and practice to drive cost down and efficiency up |
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Provider value model
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Deliver services at hourly rate higher than hourly cost |
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Focus on resource allocation |
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Customer value model
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Improved application environment and maintenance practice (lower maintenance costs) |
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Risk of delivery all with the provider |
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Predictable costs |
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Service levels aligned to business need |
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Customer value model
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Negotiate lower hourly rates |
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Line of sight between demand and resources allocated (utilization model) |
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Performance risk primarily with the customer |
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Also see
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