Outsourcing: Increase Profits With Golden Rules Of Offshoring

If you're one of these employers who want a long-term working relationship with an

offshore service provider, the foundation of success should be established from the very beginning. There are best practices you can follow to minimize outsourcing risks and maximize value.

1. Build an enduring relationship with important management personnel.

This relationship heavily depends on the host organization and the offshore provider's understanding and working ties. Studies and outsourcing stories have revealed that the chemistry and friendship between both parties can form the foundation for long lasting coordination.

2. Set measurable objectives.

When you have clarified objectives and expectations that both organizations understand, it's easier to measure performance, and meet short-term and long-term goals. These things should be negotiable so that your goals can be actually be realized.

3. Create incentive and penalty schemes.

To fulfill customer expectations and motivate the offshore provider to comply with or surpass expectations, adopting a reward and punishment system based on the criteria is a great idea. Provide incentives if the offshore partner meets or exceeds expectations, and apply appropriate penalties if the service provider has been consistently missing the target.

4. Maintain the successful relationship by conducting review meetings.

During these meetings, organize a discussion where both parties can talk about deliverables, objectives that have been met, accomplishments and progress reports. Throw in brainstorming sessions to assess what needs to be improved, and what strategies to utilize to enhance productivity.

Remember that specific objectives and techniques may be revised ever now and then to conform with marketing changes, new opportunities, market shift, etc.

5. Bridge the cultural gap.

Cultural differences between company clients and third party firms are almost always present, and that's why these differences should be accepted and recognized. When there's a good understanding of the clashing cultures, both organizations can create a harmonious business relationship. You can enhance the cultural understanding by providing company background and joining each other's quality programs.

There are plenty more events that can foster both casual and formal communication. You can also send an onshore employee or two to visit the BPO site so the host company is immersed into the foreign business culture. The idea is to eliminate inhibitions and misunderstandings that can hamper efficiency.

6. Communicate well to smoothen workflow.

Encourage the staff abroad to ask questions so instructions aren't misinterpreted. Some information might be lost when two industry experts speak over the ocean. There could be greater risks if a technical person speaks with a business specialist who is separated by distance and culture. Aside from regular interaction, a common level of communication is a major ingredient to getting that covered ROI.

by: quincycovillon

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