1. Outsourcing Decision Matrix Template
An Outsourcing Decision Matrix is a tool used to identify which business processes and operations are worth outsourcing, with the goal of reducing costs, creating efficiency, and deploying more resources towards innovation.
Using an Outsourcing Decision Matrix is vital for identifying the strategic importance of your business processes and activities and determining the best approach for conducting each one. The matrix is a 2×2 chart, with the X-axis based on overall contribution to the company’s operational performance, and the Y-axis based on strategic value.
Use the template on the next page to outline your Outsourcing Decision Matrix.
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2. Outsourcing Decision Matrix Template
Form a Strategic Alliance
Retain
Some tasks are strategically important, but contribute little to operational performance, so could be outsourced safely to a trusted partner. A strategic alliance is a good option for these types of tasks. Enter Ideas
Tasks in this quadrant are high in strategic importance and have a big impact on operational performance. Retain these tasks in-house, so that you keep the maximum level of control. Enter Ideas
Activities in this quadrant are important for successful operational performance but are not strategically important. These can be outsourced with little risk. Enter Ideas
Some tasks are not important to your organization's overall strategy, and don't make a significant contribution to its day-to-day operational performance. You could think about outsourcing these tasks. Enter Ideas
Eliminate
Outsource
Does the task in question give your business a competitive advantage?
Strategic Importance
Contribution to Operational Performance
How much does the task contribute to the smooth running of your organization? And how much disruption does it cause if it's done badly?
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3. Outsourcing Decision Matrix Template
Use the table below to create your Decision Matrix using the strategies for each quadrant
Form a Strategic Alliance
Retain
Enter Ideas here
Eliminate
Outsource
Does the task in question give your business a competitive advantage?
Strategic Importance
Contribution to Operational Performance
How much does the task contribute to the smooth running of your organization? And how much disruption does it cause if it's done badly?
Want more tools and templates? Visit