subject: How Outsourcing Can be an Advantage [print this page] How Outsourcing Can be an Advantage How Outsourcing Can be an Advantage
More and more companies are turning to offshore outsourcing in the wake of the recent financial collapse. With the advances in communication in the last 10 years, it has gotten more and more cost effective to send jobs abroad, where they can be done with comparable quality and at much lower costs.
The Rationale behind Offshore Outsourcing
Apart from being cost effective, outsourcing is also an effective way to delegate mundane and ultimately time consuming managerial hours to a competent third party. This in turn frees up time to focus on improvements, enhancements, and activities that will generally make the company better, rather than simply maintaining a status quo.
Sometimes, your company has specific projects that require skills that none of your employees possess. Because it is a single project, it doesn't make sense to hire full time employees with those skills. This is yet another instance when offshore outsourcing can be helpful.
While the situations where offshore outsourcing makes sense are many, you should still be very careful about choosing your outsource provider. While the right provider can really be a great asset to your company, the wrong one could be your downfall.
Spell out Your Requirements Clearly
You need to outline what you need as clearly and as thoroughly as you can. What are your deliverables? What are your metrics? What standard will you consider acceptable? What is your timetable? Clarity in this area will speed your process along, and make resolution of potential disputes easy. It will also make it that much easier for your potential provider to let you know it they can handle you requirements.
Do a Thorough Background Check
Outsourcing is not a new industry, there are a lot of reputable outsource companies out there. There will be track records or where applicable portfolios to consider. There will be no shortage of information on whether or not the people you are talking to are up to the task you would like to pass on to them. There is just no reason to not go over this information as thoroughly as possible. If you know of any previous clients they have worked with, you should also try to elicit what feedback you can.
Go with a One Provider for All Your Needs
Too many cooks spoil the broth. It becomes overly complex to assign jobs to many providers, especially if they are related to each other. If you have a lot of tasks to job out, it is best to hire a single provider that offers all the relevant services. This will make coordination much better, and eliminate potential finger pointing later on.
Pay in Installments
When it is a project you are jobbing out, don't pre-pay. It is best to clearly define milestones and deliverables, as well as a payment scheme based on those deliverables. You may even want to consider setting up an escrow service.
Award Bonuses for Performance
If your provider does good work, it is in your best interests to reward them. This will encourage them to continue to deliver great quality, as well as give you preferential treatment over their other clients in the future.
