Given that outsourcing is a new profession, the gap between knowing what skills are needed and getting them in place is wide; and, there are no benchmarks. Who or what do you refer to, in order to define the skills and competencies of an outsourcing professional? Where do you find them? How do you develop them, measure their performance and determine what to pay them?

A definition of the profession is a good place to start. Outsourcing professionals are individuals who bear the responsibility of designing, implementing, and managing the outsourcing relationships and processes for a company, suggests the International Association of Outsourcing Professionals (IAOP). These individuals work with senior management to set policy, identify business opportunities and assure quality results for the company. 

There are already tens of thousands of people who generally fit this description worldwide; yet, they go by other titles, carry unrelated responsibilities, and have no defined career path as a distinct and recognized group.

In what it calls a “career mapping” initiative, the association defines the characteristics of the profession, including a description of the skills, knowledge, experiences and capabilities required for success. The critical skills suggested for outsourcing professionals include analysis, judgment, communication and negotiation. Unfortunately, high-level competence in all four is a rare combination. Add the main capability components — leadership, adaptability, persuasiveness, creativity (across multiple cultures) and critical experience such as program management, team leadership, global initiatives and change management — and the challenges in sourcing, assessment, development and measurement become clear.

A Sourcing professional’s career path (in a buyer organization)

*VP Outsourcing/ Chief Outsourcing Officer

Sr. Management Executive

Executive

Financial Analyst/Manager

Entry-level Analyst * Many go by other titles

Not surprisingly, the outsourcing professional rarely comes equipped with everything necessary for success. Like other professions, a career path is necessary in which skills and experience are gained as one takes on greater responsibilities. IAOP, DNL Global and neoIT have constructed career paths within the three main types of organizations that utilize outsourcing services: Buyer companies, provider companies and advisors. Each of these types of organizations has varying titles within the outsourcing profession, but generally, they fall under analyst, manager director and VP. 

For example, at the bottom of the pyramid, a buyer organization might look for entry-level analysts, typically from undergraduate business or economics programs. Analysts who are being groomed as outsourcing professionals should be focused on work that gives them exposure to global business. They should be placed on teams comprising workers from different cultures collaborating remotely. After a short time, promising analysts will gain team leadership experience and may receive training in finance to bridge them into assignments as financial analysts or managers. In this role, talent with “high potential” might eventually be assigned leadership of projects encompassing budget responsibility, negotiation, change management and vendor relationship management. Those flagged for the next level might be paired with a mentor to prepare them for an executive role. The chosen few will be promoted into senior management positions in which large sourcing projects are identified, negotiated and managed. Ultimately, the position of VP Outsourcing, or increasingly, Chief Outsourcing Officer, represents the apex of the profession.

Lori Blackman is Founder and President, DNL Global, a talent management solutions provider. Allan Schweyer is President and Executive Director, Human Capital Institute.