Entrepreneurship & organisations: influences and organizations
The Right Way to Outsource
1. THE RIGHT WAY TO
OUTSOURCE
ELEVATE YOUR OUTSOURCING FROM A COST
TO AN OPPORTUNITY
ALLSHORE GLOBAL RESOURCES LLC.
WWW.ALLSHORE.US
2. Outsourcing: Contracting a business process or task
out to a third party provider
Simple, right?
ALLSHORE GLOBAL RESOURCES LLC.
WWW.ALLSHORE.US
3. WHERE IT ALL GOES WRONG
• Breakdowns in communication
• A lack of flexibility and adaptability
• Unclear expectations
• Poor planning
• Underutilization
ALLSHORE GLOBAL RESOURCES LLC.
WWW.ALLSHORE.US
4. THE “NEW” OUTSOURCING
• You have options!
• Long-term solutions and strategic partnerships
• Consumer-focused tailored solutions
• Smaller, more flexible deals
Outsourcing is becoming a more attractive option for mid-market and
small businesses, and offers a lot more value as a long-term solution
ALLSHORE GLOBAL RESOURCES LLC.
WWW.ALLSHORE.US
5. KEYS TO A SUCCESSFUL
OUTSOURCING VENTURE
• A thorough understanding of your company, team, and
product
• The ability to communicate these things clearly to your team and
your outsourcing provider
• Strategic Planning
• A strategic understanding of outsourcing and the willingness
to succeed
ALLSHORE GLOBAL RESOURCES LLC.
WWW.ALLSHORE.US
6. BEFORE YOU OUTSOURCE
• What do you hope to gain from your outsourcing
experience?
To be successful, you must first have a clear understanding of what
success will look like
• Communicate with your team and your company
• How will outsourcing fit into your company?
• Risk Management
• Carefully consider what you outsource
• Be sure you have the resources in-house
ALLSHORE GLOBAL RESOURCES LLC.
WWW.ALLSHORE.US
7. CHOOSING YOUR OUTSOURCING
PROVIDER
• What kind of outsourcing is right for you and your company?
• Know your limitations
ALLSHORE GLOBAL RESOURCES LLC.
WWW.ALLSHORE.US
9. WITH SO MANY OUTSOURCING
OPTIONS, WHICH ONE IS RIGHT FOR
ME?
Factors to Consider:
• Risk
• Control
• Involvement
• Cost
ALLSHORE GLOBAL RESOURCES LLC.
• Proximity
• Complexity
• Longevity (What kind of
work are you outsourcing?)
WWW.ALLSHORE.US
10. OUTSOURCING SOLUTIONS
Turn-Key
• Minimal client involvement –
minimal control
• Project manager provided
• Short-term
• Bidding
• Indirect communication
ALLSHORE GLOBAL RESOURCES LLC.
Virtual Staffing
• Higher client involvement –
higher control
• Client manages own project
• Long-term solution
• Hourly
• Direct and dedicated
• Transparency
WWW.ALLSHORE.US
11. OUTSOURCING SOLUTIONS
Multisourcing
Nearshoring
Outsourcing through multiple
vendors, usually in combination with
some internally executed elements
Outsourcing to a nearby
country. Typically to one that
shares a boarder.
• Maximizes effectiveness
• Risk management
• Promotes competition between
providers
• Proximity
• Temporal alignment (primary)
• Cultural/language alignment
• Increases complexity and risk of
misalignment
ALLSHORE GLOBAL RESOURCES LLC.
• Increases cost (sometimes
without sufficient payoff)
WWW.ALLSHORE.US
12. CHOOSING YOUR OUTSOURCING
PROVIDER
• What kind of outsourcing is right for you and your company?
•
Know your limitations
• Aligned with your business
• Solid incident, problem, and change management
•
•
Ask the what-if questions
Customer Service structure
• Flexibility
• Security
• Location
ALLSHORE GLOBAL RESOURCES LLC.
WWW.ALLSHORE.US
13. LOCATION
• Offshoring and Nearshoring
• Are there markets into which you hope to break?
• Market-intelligence advantage
• Do your research - Know what to expect
• Holidays and time off
• Do not let geopolitical bias affect your decision
• Ask the hard questions
• Do not stop paying attention
ALLSHORE GLOBAL RESOURCES LLC.
WWW.ALLSHORE.US
16. MAKING IT WORK
• Make sure everyone is on the same page
• In your own office
• With your vendor
• Communicate your expectations from the start
• Develop processes in conjunction with your provider
• Treat your overseas developer like a member of your team
• Make them a member of your team
• Do not underutilize your developers (“Value Leakage”)
ALLSHORE GLOBAL RESOURCES LLC.
WWW.ALLSHORE.US
17. COMMUNICATE WITH YOUR TEAMS
IN-HOUSE
• Make your goals and intentions clear to your company
• Get everyone on board
• Be sure everyone knows what their role is
• Include your team in the creation of processes, especially if
they have to execute
ALLSHORE GLOBAL RESOURCES LLC.
WWW.ALLSHORE.US
18. COMMUNICATE WITH YOUR TEAMS
OUTSOURCED
• Make your expectations clear from the start
• Develop processes in conjunction with your overseas
team
• Treat your outsourced developers like members of your
team
• Make your outsourced developers a member of you team
• Do not under utilize the talent available to you
ALLSHORE GLOBAL RESOURCES LLC.
WWW.ALLSHORE.US
“A strategic understanding of outsourcing and the willingness to succeed” will slide in at the end “ “ is most often overlooked and leads to underutilization of the resource, tension in the relationship and overall dissatisfaction with the experience