10 Tips To Make Outsourcing Work
This way your company can make accurate estimates and can flexibly enter into various cost-efficient outsourcing projects. 2. Stick to one. It's better to avoid a harem set-up when it comes to outsourcing projects. Josh Billings once said: "Be like a postage stamp. Stick to one thing until you get there." The same is true when you're thinking about large-scale business transformations.
Stick to one partner until you get the hang of everything. Later on, you may extend the contract and start a chain of smaller contracts. When you do this, you are imposing changes step-by-step rather than drastically. 3. A contract is a huge deal breaker in several outsourcing relationships. Before you sign, make sure there is "a meeting of the minds." Do not sign if you doubt any or some of the provisions.
Talk it out with your subcontractor if you must. It would foster a disproportionate relationship if the parties involved will just sign without properly mulling over that which will legally bind both of them for a certain period. However big or small the outsourcing project, building a partnership entails a solid contract that clearly stipulates the roles, duties and obligations of each partner as well as designates the appropriate mode of payment. Solid contracts should also be final and executory.
The contract should have already gone a strict review process and that no party will try to change its provisions after signing. It should also provide proper ways to settle conflict in case disagreement arises. 4. Be picky enough. Learn to discern the best suppliers, the so-so suppliers and the bluffing suppliers from each other.
When you require new outsourcing projects or services, it helps to be more flexible with your choices. In this way, you do not have to look back in regret when a project fails or when you happen to have a fall-out with your outsourcing partner. Do not be biased. Biased choosing of suppliers tends to make organizations less responsive to unforeseen necessities.
5. Commitment is an extraordinarily courageous feat which not many organizations are capable of. However, more often than not, non-commitment could very well be avoided if there is a strong governance mechanism that prevents any shirking away from responsibilities. A governance model also helps outsourcers to effectively manage the activities of their service providers. Make sure you choose a governance model especially customized to complement organizational peculiarities.
6. As aforementioned, be faithful to a single provider. Having multiple outsourcing channels dilutes the outsourcer's focus. Single sourcing models are easier because there is a one-way flow with which you spend all your energy. Multiple sourcing models on one hand will cut down your energy reserves as you will have to distribute them as evenly as you can to several service providers. 7. Get to know your processes well before you outsource any of them. Outsourcing may backfire if the outsourcer is not well-oriented with its own business processes.
Either keep a process flow or map out the processes beforehand. As stated in number 1, verify which parts are outsourceable and which parts are not. At best, have diagrams and illustrations. This will also make things a lot easier for your chosen vendor. Knowledge of the process flow, for instance, exposes the strengths and weaknesses of the outsourced process/processes.
The service provider could provide the appropriate countermeasures to improve weak services or reinforce already strong processes. 8. Maximize and strategize on information technology (IT). Your service provider, on one hand, shall serve as fiscalizers and facilitators who will help you fine tune the use of IT. Together with the chosen provider, you can strategically deploy IT to unleash untapped outsourcing potentials. 9. Outsourcing is not an all or nothing venture, where you have to transfer every process offshore or somewhere else other than in your own company.
