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Tips for Successful Outsourcing

Outsourcing has proved a boon to many companies. However, there are some inherent problems, which can be avoided if you employ some care. The Offshore outsource partner-you relation is meant to be a long-term one. It should be mutually beneficial.

You should exercise great care while engaging with your Offshore outsource partner. This task will largely determine the success of your partnership. The task may be entrusted to a consulting company or be done in-house. In the latter, you can form a team to select the Offshore outsource partner.

First shortlist probable candidates and brief them clearly of your expectations. Expectations have to be realistic and achievable. This will in turn help your service provider to assess whether they can measure up to those expectations.

Provide enough information to your prospective service provider with regard to the scope of the relationship, the time- frame, and the price that you are offering in return for the service.

Seek clarifications from your prospective Offshore outsource partners on any issue that you think is vague.

Ask your prospective Offshore outsource partner to provide references of their clients whom they have served. Get in touch with those clients and seek their opinion.

You should keep in the mind the technical know- how and expertise available with your Offshore outsource partner. Experience is also a factor that should be considered.

Pricing or the cost factor largely determines the success of outsourcing. However, a low cost factor alone should not be the criterion for selection. The quality of service has a great impact on your success.

The politics of the region in which your service provider is operating should be conducive too.

Legal issues and labour laws, taxation policies all have a major role in determining the success of your outsourcing.

When the process of engaging a service provider is over, a special board should be formed who would handle and manage your outsourcing aspect. This board will formulate strategies and communicate decisions to your Offshore outsource partner.

The terms and condition of the relationship should be mutually agreed and written down so there is no confusion or vagueness.
It would be better you to entrust a small project to the service provider initially. This will reduce the extent of risk and give a fair idea of how well the service provider is going to perform.

It will be necessary to evaluate the progress of the operations from time to time. Discussions and meetings should focus on the goals achieved and those yet to be achieved. New strategies may have to be chalked out, to meet specific goals

In some cases, your expectations are met or even exceeded- in such situations your service provider should be amply awarded. If, on the other hand, the Offshore outsource partner fails to deliver on its promise, then it should be penalized.

Your Offshore outsource partner performs specialized operations .To keep up its market competitiveness the employees of your Offshore outsource partner may need training to spruce up their skill. It will be your interest to ensure and provide training.

Cultural differences are likely especially with offshore outsourcing. The relationship between you and your service provider is best served when these differences are identified, understood and respected. Programmes to bridge this gap should be held where both sides can come closer.

Find one who has local setup, where service provider has better knowledge of requirement, commitment, delivery schedule, Quality awareness.

Source: OutsourceOffshore