Do's and Don'ts
Why to review Outsourcing Do's and Don'ts?
Offshore outsourcing is a necessity and also we have to make sure that it is managed effectively and proficiently and that we draw on mistakes made in the past by other companies, to ensure projects and services are delivered with the highest quality.
- Like any other battle, the struggle over choosing a partner shouldn't be entered into without a strategy
- Like any venture, when the rewards and revenues are higher, there are chances of deviations, if certain crucial issues are not managed properly
- Like any other business, outsourcing also needs some contractual considerations
Selecting the right service provider
- Pick established partners. Check them out. Talk to their existing customers
- Familiarize with the services providers' way of doing business
- Target service providers with relevant experience
- Be aware of the benefits new technology can bring
- Be sure you get what you pay for. What you are aiming to find is a company that will generate a good quality result
- Never ever trust an unknown company
- Failing to talk to a provider's current and former clients
- Failing to consider the long-term relationship dynamics
- Think before you run for cheaper services
- Not to use old business models and superimpose new technology on them. New technologies demand new business models.
Conducive working relationship
- Be precise and exhaustive on what you need from the services provider, how and when. Be very clear on what is not expected.
- Convey project specifications and issues between both parties without misunderstandings creeping in.
- Work with, do not impose. Once you outsource, your provider is part of your company; treat it that way. Give them a sense of 'ownership' of their tasks.
- Appreciate and encourage good performance.
- Keep in mind the industrial and technological limiting factors affecting the provider.
- Be realistic, and treat the consultant with respect, as this is essential to a good working relationship.
- Establish good lines of communication. There can be many things that can cause problems here such as; language barriers, time differences, cultural and economic environment differences. It is crucial that all parties can understand each other.
- Not clearly defining the desired results and how they'll be measured.
- Treating the provider as an outsider.
- Not planning up front for how the relationship might end.
- Remain passive on good performances and very critical of minor errors
- Not making sure that services provider has understood you in particular. This applies vice versa.
Balancing the different agendas
- Concerned party has to learn how to nicely nudge, persuade, and insist. They also have to learn how to listen to the advice and insights their suppliers provide to accomplish their corporate goals.
- Buyers must stay aware of technological and process advances so they know to ask their suppliers to provide these services before they develop a standard service offering that's not exactly what they need.
- Buyers must pay attention to cultural differences
- Define an exit strategy before accomplishing an outsourcing agreement
- Make a chart of best options and negative aspects and choose the best overall service/offer
- Buyers must clearly define what they are outsourcing before signing a contract. Failure to do so raises the cost of undefined services to the buyer.
- Expect and accept change and new ideas and methodology
- Provide training support via different media
- Openly discuss all matters
- Renegotiate, if changes expected are of critical nature
- Plan transitions
- Recognize and adapt to changing market trends
- Ignore the issues raised by the services provider, if they seem minor
- Try to manipulate metric figures
- Be selective and single minded on all issues
- Be closed and critical
- Threaten termination
- Be inflexible