OUTSOURCING PROCESS
Outsourcing is the complete transfer of a business process that has been traditionally operated and managed internally to an independently owned external service provider. A complete transfer means that the people, facilities, equipment, technology and other assets that no longer maintained internally once the business process is outsourced.
Outsourcing can be conceptualized as a process. So that, a company have to follow the steps or process that had been state before they wanted to outsource. So, below is the outsourcing process that should be followed.

       The first process that should be followed by an organization in outsourcing is strategic evaluation. Strategic evaluation process is the process that more towards why do we need to outsource. It also closely related to the make or buy decision. A discussion of the make or buy decision will be helpful in analyzing what may or may not be good strategic candidates for outsourcing. Strategic evaluation is also more towards the capabilities of resources. So that, we have to discuss whether to make or buy.
Second outsourcing process is financial evaluation. Financial evaluation process is based on implementation on operation cost. In this process, firms must evaluate on the potential outsourcing effort whether it can support the firms to make or only just to buy.

       Next process is supplier selection and contract development. In this process, firms have to know how to select supplier and make a contract with the supplier. To select the supplier, firms must identify and investigate the supplier first. To identify them for the buying firms, the supplier must compile their profile. In this profile, they should include such as key management contract, a company overview, SWOT (Strength, Weaknesses, Opportunities, Threats) analysis, Porter’s five key financial figures and much more. For the contract, it must be an enforceable contract. There are a few contents must have in the contract such the following components:

• A clearly scope of work
• Agreement between two parties
• Understanding of the contract contents
• Consideration for extensions and renegotiations
• Ground rules that encourages relationship
• Measuring performances for each aspect of the agreement is determined

       The forth outsourcing process is transition to the external sourcing model. The process is based on the implementation effort beginning with the contract execution to the transfer of the agreed-upon activities and resources. That’s mean the relationship between manager and supplier must merge their independent plans into one consensus plan. Consensus plan must include these:

• Communication criteria
• Personnel criteria
• Transition criteria

       The last outsourcing process is relationship management. In this process, firm must decide whether to continue the relation with the supplier or not. If the firms still need the supplier, they can proceed with the relationship and make a new contract with them. In this process also, the firms should be active in monitoring and evaluating performance and solving problems.