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The cost savings that company was able to generate due to outsourcing were tremendous (See Exhibit 1). The overall implementation of outsourcing was started with “low hanging fruits” like building maintenance, lift maintenance, transportation etc. The IM department is right in identifying the non-core business processes as the first areas that need to be outsourced. When outsourcing the data center, the company was careful to make sure that the employees’ needs are looked upon as this probably helped the company in subsequent outsourcing efforts.
The concept of benchmarking also helped the company in ensuring the charges remain competitive on an ongoing basis...
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