One needs to understand that outsourcing success really depends upon how well one manages the process before and of course after the outsourcing contract is signed. A lot of companies are known to award outsourcing contracts to the lowest bidder without taking some time to understand what it really means to the business and they also outsource without performing a complete vendor selection process. So when things start to go south, such as missed delivery dates, quality problems arise or awful customer service, the blame-game card is played and everyone start to run for cover.
Well, the following tips for successful outsourcing will sure help you make sure that your organization succeeds in outsourcing and that you will achieve desired results.
1. Make Sure That You Outsource for all The Right Reasons
When you take a bad business process and outsourcing, what you actually do is to make the problem a whole lot worse. Look, you have to understand that an outsourcing company should add great value to your business, but they should not in no way be relied upon to fix the issues that are inherent in your business. For instance, if your Information Technology (IT) department is regularly missing deadlines because the users keep changing their minds, when you outsource this function, this will surely result in much higher costs and higher of course higher levels of frustration.
2. Careful Vendor Selection Process
According to a recent outsourcing report, 35% of executives who responded said that they wished that they have taken more time on vendor selection and vendor evaluation before they signed an outsourcing contract. Let’s face it, most times outsourcing decisions can be a wee bit distorted by emotions and influenced also by company politics as well. A successful and thorough vendor selection process will help remove the emotions and also control the company politics as well.
3. Make it Measurable
Also, according to the same outsourcing report, 49% of the executives who responded said that they really should have defined the realistic service levels that go hand in hand with business objectives. If one does not take time to analyze and also define quality measures and or service levels, just think about, how on earth will he or she know if the outsourcing vendor that he or she has chosen is really performing up to his or her company’s standards, huh?!
To be continued…
Daven Michaels Author of the book Outsource This!