Offshore Outsourcing

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Offshore outsourcing basically addresses the questions that a particular organization needs to consider, in order to avail the outsourcing services of any offshore solutions provider. It’s a kind of study of the organization to assure a successful impelementation of the organization's offshore outsourcing strategy.

1) Internal Assessment:

How much does the company’s various business processes, under consideration to be outsourced, actually cost the company? Are they core IT services or include other business process outsourcing services too? What & who exactly is involved in these processes, from start to finish? Are the processes planned out and well defined? Does the company have a strategic plan for maximizing the benefits of outsourcing, if at all it goes for the option?

2) Comparative Analysis:

How much does the particular function(s) cost at other organizations in the similar industry, at a similar level? What about the benchmark companies of the field? How does your company compare qualitatively – what sort of business related process do you have versus others? What and how do various outsourcing vendors charge? Do you have any vendor evaluation process? Will the outsourcer be there next to you in two to three years when the contract is up for renewal?

3) The Actual Process:

What is the offshore outsourcing model of the selected offshore vendor? What sorts of offshore outsourcing services or information will you receive from the outsourcer? Will the outsourcer hire some or all of the employees that once did this work internally, or will it all be sent to another service center? How will that affect your company’s morale?

4) Future thoughts:

If your business doubles in the next two years, will your outsourcer be able to handle the extra work flow? Do the offshore pricing models of the contract stand feasible for the long run? If the relationship is plagued with problems, how do you get out? Finally, what is the plan for rebuilding that function if necessary?

Clearly, successful outsourcing requires serious, specific answers to one difficult question after another. And even when the best plans are laid and necessary precautions taken, the company needs to consider the possibility that an Outsourcing relationship won’t work as planned. But, if the declining hassles, lower costs and better processes overshadow those risks, it may just be time to explore what outsourcing could mean to the company.