How To Make Sure Your Outsourcing Project Succeeds
Feel like the deck is stacked against you when it comes to outsourcing?
You’re not the first manager to feel that way.
Many have—and with good reason.
Outsourcing has grown increasingly complex over the last few years.
There are more options, more potential benefits, and more technological advancements to consider.
You also must consider new kinds of risks—risks that didn’t exist a decade or so ago.
So it’s understandable if you’re feeling a little confused. In fact, it would be surprising if you didn’t.
But outsourcing offers too many benefits to dismiss out of hand.
The 9-step program described below can help you sort things out. Following it helps ensure that you reap all outsourcing’s benefits.
1. Assess the situation
Make a systematic assessment of the situation. Is this a service you really want to outsource instead of doing it in house?
Also, determine if it will make a tangible impact on your department, your company, and your customers. If you decide it will, then define the scope of the project.
2. Make a business case
Having decided outsourcing makes sense, develop a good business case for it. First, decide on your overall business objectives. These will be different in every case and should go beyond just saving money.
Second, determine if you can track the project at a granular level. This will help you determine if the project can achieve the overall business objectives you set for it.
3. Do your homework on vendors
Hiring the right service provider is critical. You’ll need one that fits your needs. So do your homework on service providers. Putting in time now will save you headaches later on.
First, develop a list of potential providers. Next, evaluate each according to specific criteria you develop. In doing so make sure you determine each provider’s strengths and weaknesses.
Finally, rank them according to how well they fit your needs. Invite the top three in for interviews.
4. Make sure you’re compatible
You’ll want to choose a service provider compatible with your organization and how you like to do things. Their values must align with yours. If they don’t, things won’t go smoothly.
Working with a compatible service provider is critical to ensuring that your customers get the quality of experience they deserve. So take your time getting to know each of the three service providers you interview.
5. Determine the relationship’s scope
Decide on the kind of relationship you want with your service provider early on. Do you want them to provide just the service itself?
Or do you want them to provide some added value to customers? Are you looking for business help from them as well?
6. Align business strategy and goals for service providers
Both organizations must be focused the same business strategies and goals. It’s not unusual that the two organizations are misaligned in an outsourcing project.
It’s your job to get them aligned, keep them aligned, and help your provider stay focused on these goals.
7. Stay in touch with service provider
Good communications is a must with outsourcing projects. So stay in touch with your service provider—constantly. Keeping an open dialog with the provider benefits everyone including customers.
8. Choose the right account person
Make sure you designate the right person to oversee day-to-day activities. Also, make sure you have the right reporting vehicles and the right checks and balances in place.
9. Develop the right feedback mechanisms
Determine the metrics and feedback mechanisms you’ll need to judge the provider’s performance. Governance is crucial to both short-term and long-term outsourcing success.
Also, re-evaluate the project constantly. Make sure it’s achieving your project’s goals and that it still make senses over the long haul.
Start small to increase odds
Following this 9-step program helps you eliminate the confusion that often comes with outsourcing. It also ensures success. So don’t skip any steps.
To increase the odds of succeeding, start small. But make sure the project you choose can make a tangible impact your company.
Later on, you can take on more challenging outsourcing projects that can transform your company.
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