Capability sourcing improves a company's competitive position by ensuring that processes and functions are obtained from the right source at the right cost. If a company is not first-rate in an activity, that capability can be upgraded through internal investment, outsourced to a best-in-class provider, or moved offshore.

Bain applies a broad strategic perspective, asking not "What should clients outsource?" but "Given that everything can be outsourced, what should they insource because they're the best at it?" Bain's work in capability sourcing improves clients' internal and external customer satisfaction, and typically lowers costs by 20 to 40 percent.

An initial analysis assesses how critical each capability is to the company's strategy and identifies the highest-value opportunities for improvement. Often the next step is to help clients fix broken processes. If outsourcing is the best option, we help select the right partner, design the deal, manage the transfer of the capability and set up monitoring systems.

To find out more about Bain's work in this capability area, please contact the practice.