Thursday, November 12, 2009 |
Outsourcing any range of services to offshore service providers is a risky process for a number of reasons. It is always important that a prospective outsourcing buyer consider the best methodologies and make decisions that consider their in-house context, the net cost savings, and whether or not a certain process can indeed be outsourced. According to outsourcing consultation firm, TPI, a 15 to 25 percent in net cost savings is enough for an organization to agree to outsource offshore. To maximize that window, however, will require careful planning and risk mitigation. Here are five tips to consider applying in order to ensure your outsourcing operation is a success.
1. Start small – This is especially true if this is your first time. Starting small will limit risks and allow for easier quality control. Be sure to start with services that are easily manageable, well-known, and not critical to the business' well-being.
2. Clearly define your goals and reasons - There are many service providers online that will tout that outsourcing will allow you to save 30 to 40 percent and will allow you to focus on 'core competencies'. By knowing exactly why outsourcing is necessary, and by having a specific set of goals, buyers are able to assess how well service providers can help realize those goals.
3. Monitor the results – In order to do this, it is important to establish objective metrics and measure results against goals. These will determine performance results upon project completion.
4. Build an offshore team – services like MicroSourcing's offshore teams staff leasing model allow you to build an offshore team with the specific set of skills to automate one or more processes within your firm. This will involve training your offshore outsourcing staff and maybe even coordinating offshore visits.
5. Establish a clear engagement model – It is essential that a buyer knows exactly how both parties will work together and define the different roles and responsibilities to get the results needed. This will involve defining escalation paths, detailing a communication model, and establishing executive level relationships.