Business activity is undergoing major changes since the beginning of the crisis, since then new concepts are being born that SMEs and other companies are embracing successfully.
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Tips for successful outsourcing
1. TIPS FOR SUCCESSFUL OUTSOURCING
Businessactivityis undergoingmajorchangessince the beginningof the crisis,since thennew concepts
are beingbornthat SMEs and othercompaniesare embracingsuccessfully.Inordertoadapt to change,
companiesneedtofree upresourcesandrespondbettertochangingmarketconditions.Companies
that do itcorrectlyare more likelytobe more productive.
Outsourcingisa wayfor companiestoprovide agilitytotheiroperationsbyprovidingthe flexibility
neededtoovercome economicobstacles.The argumentsinfavorof outsourcingare sound,andits
successisbasedon the maximizationof three keyareas:resources,personnel andprocesses.
Means.Outsourcingenablescompaniestoimprove resourcessuchasincreasinggrossmargins,freeing
up cash flowforbusiness-critical goals,reducingcostsandprovidingscalability.
Personal.Outsourcingroutine andadministrative functionsallowsstaff todomore strategicwork,
increase productivityandcommitstaff.
Process.Outsourcingproviderscanprovide processesfasterandmore efficiently,andthereforemore
cost effectivelythaninternalizedmanagement.
But, while outsourcinghelpskeeporganizational processesaheadof changes,itcanbe costly.
Outsourcingtransfersrisksfromthe companyitbuysto the distributor,animportantconsiderationin
timesof uncertainty.Thatiswhyit isnecessarytotake intoaccounta numberof tips:
1. Keepyourgoalsclear.Potential outsourcingprovidersneedtounderstandwhatyouexpecttoachieve
inorder to presentyouwithrealisticproposals.Provideasmuchinformationaspossibleandaccurate
aboutthe workyouplan to outsource,the level of service youexpect,andwhatyourschedule
requirementswillbe.
2. Analyze the supplier'sbackground.Make sure the providerisfinanciallystable andhasexperience
workingwithcompaniesmore orlesssimilartoyoursintype and size.
3. Considercultural adaptation.Visitthe provider'sofficesandtalktoemployeestomake sure there isa
goodcultural fitbetweenthe twocompanies.Discussyourowncompanyculture andbrandas an
employerwiththe provider.
4. Set the correct price.Althoughitisneveragood ideatoselecta supplierbasedpurelyonthe price,
obviouslythe price of the businesswillbe of vital importance toyourcompany.Make sure that the
2. contract you signuprelatesthe paymentstothe achievementof clearlydefinedperformance goals,so
that youknowexactlywhatyouare payingfor.Whenconsideringthe total price of the business,
remembertoinclude anyinvestmentyouneedtomake todevelopyourrelationshipmanagementskills
withthe providerof yourowncompany.
5. Incorporatesflexibility.Since outsourcingpartnershipsare likelytolastformany years,the contract
shouldalsosetdatesforreviewof the agreement.Thiswillallow youtoadjustthe relationshipas
neededbythe changesinyourcompanyor in a widerbusinessenvironment.
6. Manage the relationship.Asacustomer,youshouldexpectthe providertoinvestinthe skillsand
techniquesnecessarytoprovide qualityservice.But,yourowncompanyalsoneedstoinvestin
developingthe abilitytomanage the outsourcingrelationship.