Tips for Successful Outsourcing

Businesses of all sizes can benefit from outsourcing but the move to outsourcing requires some careful thought in order to make it successful. The key to success is choosing the right outsourcing partner for your business.

Areas to consider

Businesses should hold on to operations that define the core competences of their business and then examine the possibility of outsourcing operations that are peripheral.
Carefully consider what can be outsourced. Self contained tasks or functions are typically better suited to being outsourced.
Try to identify inefficient and costly practices within your organisation, especially when taking into account the reach and effectiveness of today’s desktop technology.
Analyse the functions to be performed – do you really need a full time person on site?
Consider the range of services you wish to outsource. Is it worth moving slowly and committing little by little?
What experience does your potential partner have in similar work?
Weigh up the costs for both outsourcing and non-outsourcing.
What are your key drivers for outsourcing?
How will you define the service and measure the success? Reputable outsourcing partners will have a robust service level agreement in place.
Effective account management and good quality communication are critical to the success.
Consider how your account will be managed and who will act as a liasion from your organisation.
Plan your strategy. Poor planning, hurried execution and lack of communication are likely to lead to failure.
A good outsourcing relationship is for the long term. Review the financial stability of your potential partner.
What procedures and insurances does your potential outsourcing partner have in place to protect your data and the reliability of the service provided?
How are staff recruited and trained by your potential outsourcing partner to ensure they comply with all policies? Is any work sub-contracted out?
What is the legal jurisdiction for any off-shore outsourcing arrangement you enter into?