Outsourcing has its advantages and disadvantages. They always influence the success of your business. How to make your company benefit from offshore outsourcing? How to make outsourcing work for you? This 10-point plan is a key tool, which can be used to make the difference between success and failure.
1 Right vendor
There are lots of sellers that have appeared in developing counties but there is a huge difference between good and weak vendors. Even the vendors with good reputation sometimes fail to deliver. Choosing a vendor, deal directly with people who will manage your business on a day-to-day basis. Make sure they have experience and ability, which are more important than their technology, customer list or offices.
2 Experience matters
People that are managing your business must know how to make your project successful. It sounds apparent thing, but you have no idea how careless and irresponsible people can be, even the managers. If your outsourcer is situated in a developing country, experienced and well paid managers may not want to move there. Keep in mind that operational and not account managers are the key workers in quality of outsourcing service.
3 Don’t assume
Anyone who has worked in any developing country will tell you this is the most important thing. Reasonable assumptions differ in countries with different culture and mentality. What seems logical in USA may seem illogical in India.
4 Use multiple vendors
If the project you carry out is sizable, use a couple of vendors. Managing of offshore operations usually requires intensive organization. The use of two or more vendors is an efficient way to induce them to improve. In case if one of them doesn’t work sufficiently, it will work as a safety net. Make sure that the vendors know about the other vendors involved in outsourcing. This will stimulate them, as they will feel the competition.
5 Count the cost
Offshore outsourcing indeed substantially reduces cost but some vendors offer complex pricing mechanisms to hide costs. This is usual for business in many countries, so always insist on transparent pricing mechanisms. Be careful and always make certain you are aware of all the expenditures before you start.