The right people in the right place - Top 5 considerations when selecting an Outsourcing Partner. This presentation was presented at the THE ITO/BPO GERMANY FORUM 2015.

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The right people in the right place
Top 5 considerations when selecting an
outsourcing partner

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Global Outsourcing Market
Agenda
Criteria of evaluation
 Staff
 Location
 Security
 Business Strategy
 Flexibility
1
2
3 Conclusion

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Global outsourcing market
Increase in global market
An increase in global outsourcing market value is
reflected in stricter criteria for selecting an
outsourcing partner.
To find one that is attractive, companies have to
focus not only on appropriate prices but also on the
quality of delivered services.

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Global outsourcing market
*Source: TPI; Information Services Group, The Statictics Portal
45.6
52.4
60.1
64.8
70
76.3 77.1
80.5
87.5
91.3 93.1 95
99.1
82.9
104.6
0
20
40
60
80
100
120
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
RevenueinbillionU.S.dollars
Year
Global market size of outsourced services from 2000 to 2014 (in billion U.S. dollars)*

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Criteria of evaluation
FlexibilityStaff Location Security
Validation of partner is based on 5 overlapping aspects:
Business
Strategy

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Staff

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Staff
It’s all about
people!

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It’s all about people!
One of the main reasons why companies decide to
outsource is to gain access to world-class capabilities.
Experienced experts handle supporting processes so
that the company can focus primarily on its core
business.

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The main aspects that should be taken into
consideration are:
1
2
Appropriately skilled labour forces
Strong business-academic
collaboration

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Appropriately skilled labour forces equipped with:
 An accurate skill
set
 Experience working
on similar projects
 Professional
attitude
 Unique knowledge
 Willingness to
undergo continual
development
 Multilingual and
multicultural
capabilities

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Location

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Where to
outsource?Location

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Where to outsource?
The location of an outsourcing partner can be the
key to successful cooperation.
This involves overall costs as well as satisfactory
communication between all participants.

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The main aspects that should be taken into
consideration are:
 Time zone alignment  Cultural affinity
 Language capabilities  Infrastructure

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Security

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Is there
any risk?
Security

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Is there any risk?
Risk in business is undesirable.
Companies search for partners that will make them
feel safe and whose services will not be threatened by
geopolitical situations.

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The main aspects that should be taken into
consideration are:
 Financial and
economy stability
 Geopolitical Risks
 Data protection
 A well-developed
telecommunications
network

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Business Strategy

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Business
Strategy
Which Service
Provider?

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Which Service Provider?
Trust is the foundation of all kinds of relationships,
including business relationships.
To choose a trusted partner is to get to know them
and gain confidence that they are going to help
create your company’s competitive advantage and
provide added value.

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The main aspects that should be taken into
consideration are:
Constant
improvement
References
Standardization and
best practices
Culture and maturity
of the organization4
21
3

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1. Constant improvement based on:
 Creation of innovative
solutions
 Continual improvement
of services
 Ground-based
portfolio
 Keeping up to date with
the latest technology
 Goals and objectives defined in mission and vision
statements

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2. References indicate:
 Customer profiles  Establishment of trust and
long-term relationships
 Constructive feedback and
productive collaboration
 Network of recommending
branch partners

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3. Standardization contains:
 Implemented international
standards such as ISO,
ITIL, and IPMA
 Best practices and verified
solution patterns
 Clear and transparent
processes
 A procedural road map
 Stability of business
processes
 Clearly defined
communication channels

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4. The culture and maturity of an organization is
composed of:
 Focus on provided solution  Teamwork and close cooperation
 Maturity of management in style and competences
 Competitive orientation  Win-win approach

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Flexibility

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Flexibility
Will they
suit us?
5

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The main aspects that should be taken into
consideration are:
Every business is unique, and thus needs tailor-made
solutions and processes.
’Customer first’
Different types of Service Level Agreement
1
2

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1. ‘Customer first’ is expressed by:
 Managing close relationships
with customers
 Ad-hoc reaction for
customer’s requests
 Proactively and constructively
adjusted solutions to provide
the real help
 Dedicated Single
Point of Contact

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2. Different levels of Service Level Agreement as
reflected in:
 Flexible working arrangements
 Tailor-made contract

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In business as well as in life there are many paths to follow.
The key is to know where you want to go and what you want to
achieve.
Quo vadis hominis?
Quo vadis hominis?
“Would you tell me, please, which way I ought to
walk from here?” Alice asked.
“That depends a good deal on where you want to
get to,” said the Cat.
Alice’s adventures in Wonderland, Lewis Carroll

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Thank You
This presentation was presented at the
THE ITO/BPO GERMANY FORUM 2015
More information about Hicron:
www.hicron.com