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Outsourcing consultancy services//Age or Technical approach to evaluate

 Q. Why consultancy service should be outsourced?

A. Consultancy service is often beneficial  to outsource due to economies of scale of the service provider, one time nature of the work, expert services and lower cost with higher quality of work.

Q. Are all consultant same?

A. Even two commodities produced from ages differ in quality and cost. It is due to the competitive advantages identified by the firm or specific production possibility curve of each firm make them unique in terms of their product. As consultancy service is required in some specific areas of expertise, it is obvious that they differ.

Q. Why consultants delivering same service differs?

A.  Qualification of consultant ensure minimum quality of work not the maximum quality of the work. Qualification provided by any authorized body is concerned with general requirement in the market and not about the specific requirements of any employer. However, consultants are employed by any particular employer. Hence, it is necessary to build evaluation criteria for outsourcing consultancy services. 

Q. What should be evaluated while selecting consultant? 

A. Technical expertise and ability to deliver the product should be tested. Service industry rely more on labor (experts) than capital (machines). To measure age of consultant can ensure trust factor but it should be limited to small fraction of overall evaluation. Approach of delivering the service and human resource required for such approach should be evaluated. 

Q. Why age can not be the evaluating factor?

A. Age can show at most that they can be trusted in delivering services required. As the market is dynamic, new problems should be handled differently than previously. It is unlike delivering some already established commodity in the market. Expert service should also be able to deliver new requirements. Measuring age in consultancy service outsourcing without measuring their approach to work is like Kabir's saying "Bada huwa toh kya huwa, jaise ped khajur". Consultants will exit with money delivering some old stuff which has no relevance at all. Management who recommended by evaluating such work can not say they are wrong. Hence, they will report perfect execution of the work by their preferred consultant. Hence, BoD should come up with technical approach evaluation criteria while outsourcing consultancy services. 

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