Outsourcing of Technical Services (PDF)

Dietrich F.O. Roeben - Outsourcing of Technical Services

Industrial plants need to operate in the most efficient way by implementing best practices and deploying efficient business processes throughout the whole value chain. Many industries require a massive asset base (plant and machinery) for production and the costs related to technical services activities make up the major share of the operating expenditure. Getting the processes and organisational structure right and improving them regularly is paramount for operations excellence. This requires a flexible organisational structure, which is continuously improved.

Technical services can be provided by a company internal and external resources. A transfer from in-house to outside is known as outsourcing. On other occasions, external service provision is transferred to internal service providers which is called insourcing. Often the first aims at costs reductions, while the second targets faster response times and less equipment downtime. Finding the right balance depends on the ever-changing circumstances and is a complex activity.

A methodology for continuous evaluation and design of the technical services delivery organisation is described in four chapters. It consists of methods and tools to evaluate, plan, and control the processes and performance. Going through the controlling cycle leads to continuous improvement and sustainable operational excellence. The methodologies are applicable to all industries with services in- or outsourcing and have been applied in many companies.

The first edition with focus on maintenance and technical services was published in 2005 when Business Process Outsourcing was at its peak. At the time the outsourcing train was running .

The first edition with focus on maintenance and technical services was published in 2005 when Business Process Outsourcing was at its peak. At the time the outsourcing train was running at full steam and western companies transferred (too) many activities to lower cost countries in the Far East. Since then Insourcing was carried out in many organisations to regain control on the value chain, this especially for data sensitive industries and high quality products.

The book supports anyone involved in Services In- / Outsourcing or going through operational improvement and organisational change. Especially the technical management of large industrial plants will find the tools and methods a useful help for their continuous improvement.