There are
stories where outsourcing projects have failed resulting in missed
deadlines and poor quality of services. The traditional reaction is
things would have been OK if I had maintained control myself. This
reminds us of the same problem we often encounter when people face
delegating tasks for the first time and many of the reasons for this
and solutions are similar.
Good news is that from our experience during many outsourcing
relationships, clients actually feel they have better control after
outsourcing than before, hence the fear can be overcome. Infinit-O has
defined 5 ways in which companies can confidently outsource without
ever worrying of losing control over their businesses.
I.
Define your objectives clearly, and adjust over time.
RFP and SLA - Any successful project starts with clearly defining the
needed requirements. You should provide your future partners
as much information as you can. The Service Level Agreement
will guide them in proposing solutions for your project therefore the
clearer the SLAs are the better solutions you will receive.
Describe how you anticipate the project to run. Start by
identifying the targets and the timeline. There will always
be a transition period and a learning curve at the start of the project
therefore the SLAs should be realistic. These can then be
adjusted overtime. It is also important to align the SLAs to
the business’ goals. This will ensure that the
success of the project will enable your company to move closer to its
goals.
II.
Choose the right partner, not the wrong vendor.
Majority of the companies that are currently outsourcing know that the
cheaper the solution does not mean it is better. It is true
that outsourcing has helped companies reduce their costs but in looking
for the right partner, cost benefit should not be the only
basis. List three of the most important benefits you are
expecting to achieve from outsourcing and start ranking the vendors
based from those. The common expectations include improvement
in speed and quality of service, decrease of administration cost,
access to skilled workers, redirection of focus to core business as
well as reduction of risk.
III.
Start Small, then expand.
After you have chosen the partner that can provide what you need, you
shouldn’t rush and throw everything to your
partner. It is wise to start small. This way, the
impact of errors is not as critical and can be addressed
faster. This will also give you a better understanding of how
your partner handles situations. Once the process is
smoothened and you are already satisfied with the delivered results,
start ramping up the project to your desired size. It is also
good to have a project schedule in doing this.
IV. Be
Involved in the Hiring Process.
Interviewing the applicants and being the one who will choose the
people for your project would give you more control over the
project. This enables you to find the best people who fit
your requirements not just their technical skills but their attitude as
well. In addition, this is a good way of developing your
relationship with your possible offshore staff. They would
look at you as their employer and not just a customer of their onshore
employer. Having this perception gives you a lot of advantage.
V. Have
Regular Performance Review Meetings
To help
you and your partner improve the process faster, have regular
performance review meetings. Discuss the results of the
SLA. Address the targets that were not achieved and at the
same time find ways to improve those that were achieved.
Conducting root cause analysis would be extremely helpful to minimize
the likelihood of recurrence.
In conclusion, though some have failed in using outsourcing as a
strategic tool, it doesn’t mean that you will too. Remember,
the worth of any tool can be increased a hundredfold if used wisely.
