The Three Most Common Outsourcing Mistakes
Lost in much of the public debate about offshore outsourcing is
the actual process of transferring business operations to a
third-party company outside the U.S. It's time consuming,
complex and fraught with peril. Fortunately, most companies
make the same mistakes.
1. Most companies woefully under invest in the ongoing
governance and management of the service provider relationship
and underestimate the time, money and people it takes to manage
far-flung operations effectively. The savings won't be as great,
but companies must invest in overseeing the partnership for the
long term. This includes establishing a dedicated team of
people, on both ends, to ensure compliance and adherence to
agreed-upon service levels.
2. Before deciding on a country or service provider,
first determine the cost of running your business processes and
what your objectives are. If your service levels and costs are
already competitive, it won't make sense to farm it out. Study
the expertise of each potential partner, considering proximity,
costs, cultural and language barriers, telecom infrastructure
and tax laws among other factors, before making a decision.
India will not always be the right answer.
3. Before deciding on a country or service provider,
first determine the cost of running your business processes and
what your objectives are. If your service levels and costs are
already competitive, it won't make sense to farm it out. Study
the expertise of each potential partner, considering proximity,
costs, cultural and language barriers, telecom infrastructure
and tax laws among other factors, before making a decision.
India will not always be the right answer.