The following items are the ten steps to outsourcing success that companies and business organizations should keep in mind.
1. Defining clear objectives is the key to successful outsourcing strategy. The objectives state the reasons for the endeavor. Moreover, it illuminates business value and offer a working framework to make decisions regarding which vendor to choose, what outsourcing model to use, the projects to be outsourced and the risk levels to assume.
2.Counting the costs is very important. With so much pressure these days to cut on expenses by putting expensive skilled labor tasks offshore; it is easy to underestimate the true costs that are involved. There may be hidden costs that could add to the actual work.
3. Understanding and managing risks actively by keeping a list of possible risks and awareness that there may be things that could go wrong along the way. Moreover, it is important to prioritize and manage the risks aggressively based on the impact expected.
4. Measure and track the benefits in an objective manner by letting the numbers speak for themselves. If the benefits are short of what one expects, these should be known to take corrective actions or measures. On the other hand, if performance is extraordinary, this should not be downplayed either.
5. It is important to use an effective outsourcing model that has been proven to be successful. Moreover, the model should meet an organization’s business model and fits with current standards. There are many outsourcing models, each with weaknesses, strengths and the right applications.
6. Choosing complementary business partners is more important than choosing the right business model. When evaluating offshore service providers, there should be a request for proposal and information process. All prospective vendors should be assessed if they are equipped to meet functional and technical requirements.
7. An organization or even an individual should start slowly and build gradually. It is important to take time and make certain to establish a robust foundation for executions in the future. Start small with one, well-defined self-contained pilot project.
8. Another important step is to monitor and evaluate progress to understand the relative success or failure of the overall outsourcing strategy. To do this, one should start with an established baseline of the latest performance with the use of the same scorecard metrics that are used to evaluate offshore performance.
9. Look for specific experience fit to avoid being someone’s ‘guinea pig’. This is especially important when outsourcing complicated technical projects like the development of software. For instance, if one needs a business plan to open a retail store, the best results could be achieved if the consultant hired has verifiable experience in the retail field.
10. Maintaining a degree of separation between offshore and onshore resource teams may be reasonable, but could result to suboptimal performance.
Thus, it is also important to keep the relationship personal. This is because ultimately, what would make any outsourcing engagement successful or otherwise are the people.