Get More Money Out of Your Outsourcing by Following These Proven Steps

Get More Money Out of Your Outsourcing by Following These Proven Steps



You should lay the groundwork for a successful long-term offshore outsourcing engagement with another company throughout the negotiation phase. In this round of negotiations, the SLA is front and center.
See the Outsourcing Times at http://www.blogsource.org for more on how the host organization stands to benefit from outsourcing. When it comes to outsourcing, though, there are several schools of thought on how to get the most out of it while keeping risks to a minimum. When developing your SLA and establishing and maintaining a connection with your selected provider, you can refer to the following best practices for guidance.

Outsourcing to a Foreign Country: Five Essential Guidelines:
1. Foster long-lasting connections between important members of management.
Key management members of both teams need to have a solid grasp of one another's roles and responsibilities in order for their interaction to be productive. Research on successful outsourcing projects has shown that strong managerial chemistry and strong peer friendships are key factors in building lasting connections that deliver tangible results.
2. State a Goal That Can Be Measured.
Having clear, measurable goals and standards for service quality is an important component of a good performance metric. Keep in mind that they are negotiable, but if you can obtain SLAs for similar projects, they will be good places to start. Whatever you do, before implementing the SLA, make sure that both organizations understand and agree upon its specific goals and expectations.
3. Plan the Rewards and Sanctions Ahead of Time
Adopting performance based pricing criteria should motivate the provider to reach or above the specified customer expectations. It is fair to reward the service provider when their performance goes above and beyond, and to penalize them when they fail to meet goals on a regular basis.
Review on a Regular Basis to Keep Your Relationships Strong.
Schedule regular formal review meetings. The meetings provide an opportunity for both parties to review the teams' progress and set mutually beneficial goals for the future of the business. At these gatherings, they can talk about deliverables and product reviews as well. Remember that opportunity costs and shifting market conditions may necessitate ongoing revisions to performance goals.
5. Cultivate Effective and Regular Communication to Overcome Cultural Barriers
Because of the cultural differences between the people involved in an outsourcing arrangement, it is essential that they learn to work together. By hosting social events, sharing business histories, taking part in each other's quality programs, etc., the two organizations can better understand each other's cultures. The secret to a happy relationship is, indeed, open dialogue. During the installation phase, it could be beneficial to dispatch a dedicated employee to the BPO site for a few months to help with understanding.
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