10 Essential Tips to Ensure Your Outsourcing Success

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executive helping his delegates to reach outsourcing success

Outsourcing can give your company tons of benefits, such as cost advantages, increased efficiency, and skilled resources. But you can only reap these perks if you follow the process and team up with the right firm. To guarantee your outsourcing success, heed these vital tips.


1. Define your objectives.

A successful outsourcing scheme starts with defined objectives and measurable goals. Starting a plan without a clear purpose can lead to miscalculated management decisions, vague performance metrics, and unrealized business value. It can also affect the expected gains and lead to higher costs, wasted resources, and lost business prospects.

2. Set realistic expectations.

When you set your targets, make sure your goals are practical. Unrealistic expectations of large instant savings have spoiled many firms’ outsourcing success. A cautious, practical set of expectations ensures continued support for your outsourcing scheme.

3. Count the costs.

Besides setting realistic visions, you must also reflect all related costs in your project outlook. Hidden costs alone can range from 15-60% of the outsourcing contract itself and sometimes more. Minimize these costs by carefully managing your finances and doing the right approach. You must also account these hidden costs in the total expenses before boasting of the savings to the executives.

4. Understand and manage the risks.

To ensure your outsourcing success, your plan must follow a risk-mitigation scheme. Prioritize and manage the risks based on their expected impact. Keep updated mitigation plans in place, actively monitor risk development, and take proactive measures to ensure that risks don’t materialize.

5. Measure and track the gains.

Even if it is tempting to assign unrelated benefit claims to your outsourcing scheme, try not to give in. Let the numbers speak. If they are short of what you expect, use them to take action. If they perform well, don’t downplay the results either.

6. Look for specific experience fit.

Make sure that your selected provider has the experience to handle your project. Never agree to be some company’s “guinea pig,” especially when you are contracting complex technical projects like software development.

7. Choose the right partners.

Do not choose a business partner based solely on price. Focus on your goals and make them your basis in gauging potential firms. If available, review the company’s portfolios and samples so you can examine how they work.

8. Start small.

When you’re working with an outsourcing firm for the first time, start with a small project and a simple scope. This way, you’ll get the chance to gauge their skills first before you agree on a long-term project.

9. Observe and assess your progress.

Keep track of the key phases to grasp the relative success and failure of your plans. Choose metrics that can measure and define your goals. Make sure they can help you measure, report, and audit your progress.

10. Put your contracts in writing.

Keep a written copy of all your contracts, project scope, and deliverables. This will save you in case your partner firm changes course during the process. Make sure that you clearly convey your needs and confirm their understanding on the agreement.

If you think these tips aren’t enough to ensure your outsourcing success, try Outsource-Philippines. Check out these reasons on why you should choose us.

Image courtesy of nenetus at FreeDigitalPhotos.net

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