Outsourcing success is dependent upon how well you manage the process before and after the outsourcing contract is signed. Many companies award the outsourcing contract to the lowest bidder without understanding what it means to the business and without performing a complete vendor selection process. When things start to fall apart, like missed delivery dates, quality problems occur or bad customer service, the blame-game starts and everyone runs for cover. The following outsourcing success tips will help ensure that outsourcing will succeed in your organization and you will achieve the results you desire.
Outsourcing Success Tip #1: Outsource for the Right Reasons, taking a bad business process and outsourcing it only makes the problem worse. Without a doubt, an outsourcing vendor should add value to your business, but should not be relied upon to fix the problems inherent in your business. For example, if your IT department consistently misses deadlines because users keep changing their minds, outsourcing this function will result in higher costs and higher levels of frustration.
Outsourcing Success Tip #2: Thorough Vendor Selection Process. In the Deloitte Consulting - 2008 Outsourcing Report 35% of executives responded that they wished they would have "Spent more time on vendor selection and vendor evaluation" before signing an outsourcing contract. The outsourcing decision can be distorted by emotions and manipulated by company politics. A successful vendor selection process will remove the emotions and control the company politics.
Outsourcing Success Tip #3: Make It Measurable. Also, in the Deloitte Consulting - 2008 Outsourcing Report 49% of executives responded that they should have "Defined realistic service levels that align with business goals". If you don't analyze and define quality measurements and/or service levels, how will you know if your outsourcing vendor is performing to your standards?
Outsourcing Success Tip #4: Follow Up. After the newness of the outsourcing relationship wears off, it is human nature to sit back and enjoy the ride for awhile. Unfortunately, this leads to complacency and attention to performance can be forgotten. In order to avoid these symptoms, set a timetable to review your outsourcing vendor's performance. Also, appoint a manager or executive that will be held responsible for the follow up. If needed, send your staff to be trained in vendor management skills and techniques (check with local colleges or universities). This strategy will also yield the ability to deal with unforeseen circumstances on a timelier basis and mitigate the risk associated with outsourcing.
Outsourcing Success Tip #5: Know When Your Going Over Your Head. Seek an experienced advisor or consultant if your outsourcing project involves any of the following circumstances:
• The project is big enough that it will expose the company to significant risks
• Company politics are jeopardizing the success of the project
• Management does not have the experience in vendor evaluation and vendor selection
Angelo Brian Cartagena
TeamSpan Global Solutions
Direct Line: 1.203.659.4778
Visit us at: www.teamspan.com
Re: 5 Tips for a Successful Outsourcing Project
One of the ways that people can check companies or individuals that they would want to outsource is the internet itself. Aside from looking at their credentials and background, you can check what other people or other companies can say about them. Give them a ring or a mail and I'm sure that you are going to have a really good idea if you are choosing the right company.
Outsourcing is very helpful to a business whether its small, medium or large business. The 5 tips that are mentioned in the topic are right and i very well agree with it. Before outsourcing a project you need to know first what to outsource and when to outsource, then find an outsourcing firm that specialise in that kind of project so that you will be at ease when the project starts. Check if the quotation is best for you.
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Very well said, when outsourcing you need to plan it first and know when and what to outsource. There are many outsourcing firms out there but some are not reputable and not worthy of your time. An example of a reputable outsourcing company is Deployed Offshoring.
This is a great write up about how one can run and manage a successful outsourcing project. While the stakes tend to be hire in these kinds of contracts, there's definitely a greater need to understand everything outsourcing entails before one decides to venture into it. For example, you've mentioned outsourcing should be done for the right reason and that not any business can succeed through this process. Important care should be given and I strongly side with you on this one.
I really enjoyed reading what the original posted shared in regards to outsourcing. Outsourcing is a delicate business process that should be handled with care, otherwise one risks the possibility of encountering failure. I have always had these two guiding principals when it comes to outsourcing. One what tasks do you outsource and two when should you outsource. When looking to fulfill all your business outsourcing needs, these two points mentioned above can really help set you on the right path.