/24-7PressRelease/ - MAKATI CITY, PHILIPPINES, January 31, 2008 - I cannot blame them as 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 me of the same problem I often encounter when people face delegating tasks for the first time and many of the reasons for this and solutions as similar..
Good news is that from my experience during many outsourcing relationships, clients actually feel they have better control after outsourcing than before, hence the fear can be overcome. I have defined 5 ways in which companies can confidently outsource without ever worrying of losing control over their businesses.
1.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.
2.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.
3.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.
4.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.
5.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.
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.
About the Author
Richard Eldridge is a well known and highly respected outsourcing specialist and consultant. He is the co-founder of Infinit-O, a boutique BPO company that specializes in assisting Small and Medium sized businesses realize the full benefits of outsourcing.
If you have any other questions about outsourcing or if you want to consult how outsourcing can work for your business, email info@infinit-o.com or call (866) 727 2504.
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