Thursday, February 15, 2007

Offshore Outsourcing Strategy

Although outsourcing has lead to many success stories and has so many associated advantages, taking outsourcing for granted is not recommended.

This is the reason why companies need to plan and consult a lot before actually outsourcing their services.

The best way to go about is by Strategic outsourcing. Strategic outsourcing requires a company to carefully plan and analyze its long term objectives and decide which processes to outsource, why to outsource, when to outsource, where to outsource, the relative costs involved, the long term benefits, political stability of the outsourcing destination and lots more. Only after deciding on these issues should the company outsource its services.

Let us look at some factors that make the best business process outsourcing-

Selecting the Right BPO destination

• Should have a stable government
• Should have quality certified software firms
• Should have a good communications and internet infrastructure
• Should have a proper time zone to have 24/7 service
• There should be proper availability of skilled workforce
• The labor costs should be low

Selecting the Right BPO vendor

• The BPO vendor should have a good reputation
• He should be in a position to recruit and train a workforce
• He should possess quality infrastructure and expansion facilities
• He should have a quality certified license
• He should have customers in accordance to his size of business
• He should be able to deliver the needs for multiple technological skills

By taking care of these important factors that client company can be sure to have the best business process outsourcing that is bound to succeed.

To ensure that the outsourcing would be a wise decision following strategic points should be given due consideration:

Understanding the Needs and Objectives of the Organization

• Before actually planning to outsource a company must be sure of its long term goals and objectives. Based on these objectives a company needs to decide what kind of outsourcing contracts to go for.

Identifying the off-shore outsourcing destination

• In off-shore outsourcing the destination country plays the most important role. Before finalizing the destination a company has to make sure that the destination country has a stable government, good infrastructure and cheap labor.

Identifying and selecting suppliers

• Suppliers/Vendors are players who provide outsourcing services. The suppliers strengths, services he offers, existing customers, infrastructure and certifications are some things that need to be taken into consideration.

Signing the contract

• The outsourcing contract should be a full-fledged one with the mention of all necessary information. There should be a SLA or service level agreement also. Make sure the terms of service are flexible and expandable to newer levels. Licenses and other warranties should be signed with the contract

Establishing a communication channel

• Communication plays a major role in deciding the success or failure of an outsourcing project. So make sure to establish clear communication to the supplier about your specific needs and expectations

Measuring the ROI

• Measuring the ROI (return on investment) is the most important step in deciding the actual success or failure of the outsourcing project. Hence regular measurement of ROI is very important.

By following these simple steps on how to outsource successfully an organization is sure to reap the maximum benefits.

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