Outsourcing Strategy for Successful Outsourcing

Outsourcing strategy is needful for achieving outstanding success with outsourcing. The strategy you employ in managing the process before and after signing the contract would determine how successful the outcome will be. Thorough vendor selection process is needful for peak performance with outsourcing. Do not just award the project to the lowest bidder without delving deeper to find out other things about the provider.

Rash vendor selection may ultimately result in issues such as low quality, missed delivery dates or bad customer service. In as much as you want to achieve costs savings with outsourcing, don’t just jump on a ridiculously low bid, issues usually arise afterwards; this does not go without the saying “You will get what you paid”. So, take heed and embark on a profound vendor selection process. Successful outsourcing starts with successful vendor selection.

In this post, we will examine top outsourcing strategy (not just one) for achieving outsourcing success;

Strategy 1: Your Reason for Outsourcing Should Be Right

This may sound more like a tip, it is also a strategy. If you outsource for the right reasons, you’ve taken the fastest track to achieving exceptional success with outsourcing. Although the vendor is expected to add value to the client’s business, the company should not rely on the vendor to fix its core issues. Do not outsource your information technology department just because the department is not keeping up with deadlines, you may not achieve sustainable result by choosing to outsource the IT task. In fact, choosing to outsource may increase frustration and cost.

Strategy 2: Profound Vendor Selection Process

An outsourcing report in 2008 showed that over 20% of executives interviewed expressed regret for not being thorough in vendor selection process before entering into a contract agreement with outsourcing vendors. The final outcome could be catastrophic when proper selection process is not undertaken before choosing a vendor. So, adequate selection process is a vital outsourcing strategy for any company considering outsourcing.

Strategy 3: Performance Measurement

Also, there is need to spell out realistic service levels which would be in line with the goals and objectives of the company. In essence, proper analysis and definition of service levels and quality measurement is necessary for measuring the vendor’s performance as the project progresses, and also for the final outcome.

Strategy 4: Set Up a Follow-up System

A follow-up system is also helpful for performance measurement. It is natural for complacency to set in when there is no monitoring or follow-up system. The system could possibly be in the form of a committee that would monitor the project throughout its lifespan.

Finally, there should be proper legal backing and documentation put in place, this would provide grounds to prosecute breach of contract.

Get your free copy of FB Miner Lead Generation Software when you get Daven Michaels new book ‘Outsource Smart,  Daven is the CEO of 123Employee, the premiere outsourcing center in the Philippines. Daven is considered to be the foremost outsourcing expert and has been honored more than any other individual or outsourcing organization. You can get more information on outsourcing by visiting  http://outsourcesmart.com/outsourcesmart.

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