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What Not To Do In An Offshore Outsourcing Deal
Date Added: April 22, 2009 11:43:28 AM
Author: Maneet Puri
Category: Business Services
Much has been said about the business benefits of offshore outsourcing for companies and organizations. Still, when it comes to actual practice businesses go through a period of skepticism before they, if at all, employ outsourcing strategies. This fear is perhaps bred by the many horror stories about outsourcing that has been doing rounds. It is important to understand that outsourcing is not a magic formula that results in instant business success. Rather, the success of the outsourcing deal depends a lot upon how you handle it. Offshore outsourcing involves a thorough analysis of in-house business operations and transferring certain functions that need improvement to offshore continents. With a proper plan and high-end strategy, outsourcing can grant immense cost benefits to outsourcing parties. You may already know about good practices and things that you 'should' do. Here are some things that you 'should not' do to make your project a success. Do Not... Over-Estimate your Management Resources Often, organizations assume that they have necessary internal capabilities to govern offshore operations. However, when it comes to actual project handling and management they realize their resources are not enough. This results in poor productivity and poor quality of deliverables. It is very important devote time and analyze your available resources before you embark on an offshore outsourcing endeavor. If you lack adequate resources, spend some time acquiring that before starting the outsourcing project. Think Only about the Cost Benefits Offshore outsourcing is an important cost reduction strategy. However, where businesses go wrong is when they consider only the cost angle in outsourcing projects. Offshore outsourcing is the practice of transferring processes to offshore continents for cheaper rates. But what is the point of getting cheaper rates when the quality of deliverables depreciate? What you may save on the cost front will be balanced by the losses you make as a result of poor quality of services. When choosing your service provider, don't simply select the one that offers the lowest price but make sure you check their experience level and expertise of the processes and see if they can cater to your requirements well enough. Refuse to make Investments As stated earlier, offshore outsourcing projects can be as successful as you make them to be. The practice of offshore outsourcing can be a very profitable venture, especially in the long run. However, many businesses shy away from making some initial investments and thus totally miss out its long term investments. To make sure you have a seamless outsourcing endeavor it is important to overcome all the potential issues and concerns of the same. This would involve staff training, orientation and retention etc. that would require you to spend some money. You should consider this as an initial investment that would pay off dividends later. Not only this, it would also foster higher productivity and lower attrition rates. Refuse to Compromise One of the major reasons why outsourcing partnerships fail is because of the incompatibility of the partners. Remember, though you are paying your vendor for the services, they are also respectable businesses. The relationship of the outsourcing client and the service provider goes a long way in determining the success of the project. Don't be adamant and be ready to adjust in order to make sure your project goes on smoothly. Maneet Puri is the managing director of LeXolution IT Services, a reputed offshore outsourcing company based in India. He has been involved with the knowledge process outsourcing for over 10 years and leads his company to deliver efficient KPO services.
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