Outsourcing is a proven way to boost profitability, but your gains depend on “who” you outsource to and “what” part of your business. If done the right way, it gives an unbeatable competitive advantage.
1. CHOOSE CREDIBILITY & QUALITY OVER PRICE
It is important that you choose a credible outsourcing partner with a proven track record. Low ball prices look attractive; but may bring along de-motivated employees, insufficient infrastructure and lack of quality to mention few.
- You should look at- the Vendor’s past work, market reputation, clients, etc. clients to get an understanding of the quality of services/products.
Eg. For our company Tech Active you might want to look at http://www.tech-active.com/Portfolio.pps
2. BUILDING RELATIONSHIPS
It takes time to know your outsourcing vendors well- do take time to speak to them, meet them. A true partnership needs time to mature to deliver the desired benefits.
- You should ask- What support will you offer me? Who is my point of contact? Ease of getting in touch with vendor? Timescales for resolving problems, if any occur.
3. START SMART- START SMALL
If you have never outsourced before, try out with a small and non-critical project. It may not be perfect the first time. But you will learn a lot in the process. Importantly, you need to get comfortable with the idea of outsourcing first. Assess your business needs and investigate if outsourcing is right for you.
- You should ask- Time scales for project delivery? How much would you need to be involved? It is likely that you may well find yourself more involved initially. But as the partnership goes past initial stages, your involvement should reduce in outsourced projects.
4. COMMUNICATE REGULARLY
For the partnership to work successfully and deliver your business objective, do take time to communicate. It’s a two way process, ensure the vendor can be reached during opening hours in your country. It requires commitment from you- ensure you get back to vendor in agreed time scale for any information, feedback sought, as delays impact the progress of the project.
- You should ask- When, who and how can I reach a “person” at the Vendor? Ensure you will be put through to a person and not an automated system, somebody who can help you directly or indirectly asap. Don’t forget to give out same details to the vendor to be able to contact you!
5. UNDERSTAND CUTURAL DIFFERENCES
This may sound easy, but quite often businesses fail to grasp its importance. Eg. In the EU/US the period of December/January and April are not ideal for planning any major activities, given holiday and vacation schedules around Christmas and Easter. If you are outsourcing to a company in India, the end of October- November is time for festivals in India which locally is just as big and important as Christmas.
- You should ask-If there are any bank holidays in the Vendor country will that impact the progress of the project? Set out your timescales at the outset and acceptable deviation, if any.
6. PROTECT YOUR INTELLECTUAL PROPERTY
Regardless of what you think, it’s not easy to enforce law and pursue the legal option against your offshore vendor. It is vitally important to work with vendors who have local office, so that NDA and Contract clauses can be enforced, if necessary.
- You should ask- Is the client happy to sign NDA (Non Disclosure Act)? Is the vendor registered in my country of operation? Does the vendor have a local office or a local person as a point of contact?
7. RESPONSIBILITIES
The vendor is a separate company with its own goals, motivations and agendas. The onus for the success of the project still rests with the buyer of the outsourcing services. It is still your responsibility to make sure that vendor is working appropriately and that corrections are made where necessary.
- You should ask- Does the vendor provide way to track progress of projects? What modifications can vendor accommodate at different stages of projects? Does vendor seek your feedback during the course of project?
8. TRUST AND VERIFY
See if you can meet either a representative or an employee of the vendor to visit your site in person. Face-to-face contact/ Skype contact should be made. See if the website publishes any pictures of their office/ workshop.
- You should ask-Is this company registered in my country? Do I have a person to contact locally? If the vendor has a strong portfolio and client base (some of which should be local to your country), you can be reasonably certain it is genuine company.
How We Can Help You
Tech Active provides outsourcing web based solutions and operates across 5 countries worldwide. We have an established client base (Nissan, Oracle and Emirates) with operations in US, UK, Netherlands, Australia and India.
Contact Us To Discuss Your IT Needs today
Name: Pallavi Chaudhari ¦ Sr. Business Consultant
Phone +44 020 3129 5962 or 07429017397
Email: enquiry@tech-active.com