by Brianna Crandall — December 24, 2014—BSI the U.K.-based business standards company, recently published BS ISO 37500 Guidance on outsourcing, which the company says is the first overarching ISO standard to set out the generic principles and procedures of outsourcing, applicable to all businesses and industries. For the first time also, it helps businesses to access a common vocabulary on which to base their communications, leading to better understanding and greater success.
The value of outsourcing has already been noted by organizations who want to increase their efficiency and reduce their costs by sending work to external third parties. The practice, which encourages mutually beneficial collaborative working relationships, has grown over the past 20 years and is estimated to generate revenues in the region of trillions of U.S. dollars a year, according to BSI.
Nevertheless there are challenges and hazards. Not all outsourcing deals are a success, points out BSI. Some can fail dramatically—and publicly—while others simply fail to perform well. BSI ISO 37500 can help organizations to boost business efficiency, gain better value and help avoid costly mishaps.
BS ISO 37500 can assist and support customers, service providers and third-party advisors (such as lawyers and consultants) involved in outsourcing. In particular it will help organizations to identify the business case for outsourcing, select the most appropriate customer or provider partner, transition to the new operating model, and deliver value through the relationship.
The standard is relevant to all markets such as manufacturing, retail, financial services, public sector and facilities management, says BSI.
Benefits of BS ISO 37500 include:
- Improved interoperability by harmonizing communications between organizations engaged in, or in the process of engaging in, outsourcing in national and international markets;
- Includes the terminology, concepts and procedures to improve the understanding of all parties involved in outsourcing;
- Uses a common vocabulary for outsourcing communications, avoiding misunderstandings and incorrect and/or unrealistic expectations, and reducing transaction costs; and
- Boosts business efficiency, which will benefit everyone involved.
The international standard was developed by experts from countries such as Canada, Germany, India, Malaysia, Netherlands and the U.K. Additional U.K. input came from organizations including AEGON, BP, CapitalOne, DWF, Gartner, IBM, the National Outsourcing Association and PwC.
