The outsourcing model can be implemented in two ways.
The first is to let the outsourcer fund the capital required for the CRM project
- for example entering into a deal with outsourced customer contact centres.
- This is a good option as there is no immediate cash outflow. However this option increases the total cost of ownership, as the outsourcer will charge the interest on the capital.
- May not be attractive for organisations that want to retain control over the assets but have funding constraints for the entire CRM initiative.
The other option is to prioritise the CRM initiatives and use the available cash to fund the higher priority initiatives and postpone the others until the outsourced services provide enough savings to move ahead with other initiatives.
- This option reduces the total cost of ownership, and also enables organisation to realise its CRM vision.
- This is more conservative approach, but then so are most CFOs.
- In this case the organisation will of course have to wait until the value is unlocked through outsourcing.
- But selecting an outsourcing value that can be quickly realised can minimise even this downside.
- This alternative thus develops operational efficiencies simultaneously with the CRM capabilities.