Successful outsourcing rests on the twin pillars of smart strategy and thorough research. The market is flooded with outsourcing vendors and companies as well as freelancers, all vying with each other to entice clients into outsourcing with them. But, are all of them good enough for you? Do they all offer the same quality of work? How best can you avail of the benefits of outsourcing while avoiding the potential pitfalls?
Here are some smart secrets of successful outsourcing.
1. Choose what should be outsourced and what should stay in-house.
A common mistake that most companies make when they outsource is to believe that any and everything can be outsourced. This fallacy has cost many a company dearly as the fact of the matter is that not all projects are suitable for offshore outsourcing and it is critical to make this distinction. So, what can be outsourced? To begin with, the non-core competencies of the business that do not require day-to-day interaction between you and your outsourcing partner. Certain functions that are crucial and core to your business (which contain sensitive company data) should never ever be outsourced.
2. Choose the right vendor
One of the most important contributing factors towards successful outsourcing is vendor selection. Vendor is a broad term and could mean a freelancer, project outsourcing companies as well as vendors who specialize in providing virtual employees. The vendor should be someone who has expertise in your particular industry or have expertise in the domain that you work in. Do a thorough Internet research and evaluate potential vendors on various criteria like: does the vendor understand your goals and objectives; is the vendor committed to a long-term relationship?
In addition, the ones that you narrow down should fulfill other critical requirements. What is the outsourcing service provider's strategic plan and vision, overall outsourcing experience, clientèle, financial viability, technical prowess, quality of delivery. Also pay attention to other issues like the vendor's global presence, and the crucial client feedback. Client feedback is of paramount importance in getting a first-hand insight into how satisfactory the vendor's services are.
3. Does the vendor have a strong on-site management system in place?
This is a particular concern with IT and software companies who outsource large volumes of IT-related work and projects. Even those who work with virtual employees, need to have a supervisory authority in the form of on-site project managers who would oversee their remote employee's work and be a point of contact for discussions and problem-resolution. The on-site manager acts as a representative of the client and acts as a conduit of information and instructions between the client and their remote employee(s). The project manager also diffuses any tension resulting from cultural differences or errors in communications before they escalate.
4. Transparency in communication
An open vendor-client communication is crucial in ensuring the success of the outsourcing process. early in the engagement is often underestimated. However, it is a critical step that can impact the transition of work from client teams to offshore teams, which can be a very delicate situation. Mishandling communications can result in ill-will on the part of the client's team and unwillingness to cooperate fully with the vendor. Early communication eases the transition for everyone, and mature outsourcing vendors will offer tools and approaches to help you manage the transition. The best vendors will realize that communication is not simply a step, but a way of doing business and perhaps the most important factor in a healthy vendor/client relationship.
5. Commonly agreed deliverables and targets
Another critical factor in successful offshore outsourcing is deciding upon deliverables and targets. Needless to add, a signed contract that has everything in writing and which has been agreed upon by both parties is a must. Ambiguity has no place in such a contract, particularly regrading delivery dates. However, with a virtual employee, it is like signing a contract with a locally hired employee. A virtual employee gets hired for long-running day-to-day work instead of short projects, in which case the contract can be clear about incentives and performance bonuses etc.
If these issues are kept in mind, there is nothing to stop the outsourcing process from being an unqualified success.
Daya Mukherjee is a Senior Content Writer and Editor working for a Remote Staffing Outsourcing company in India. You can find out more information by visiting our Outsourcing, Outsource, PHP Outsourcing Websites.
