Offshoring is a global trend in today’s advanced business scenario where geographical distance is no longer an impediment. Companies are on the constant look out for offshoring partners that can deliver a work output of excellent quality, while keeping the financial input low.
There are several challenges an organization hiring the services of an offshoring company has to face. Considering that the offshoring service provider is the one in the hunt for business, it is often the responsibility of this company or unit to dissipate these challenges and make way for smooth business. Setting up a business structure in line with another organization is a difficult task. Nevertheless, if designed in an appropriate manner, the right business models have the ability to ensure that both companies can expect to achieve better business outcomes.
So what are the essential qualities organizations should look for in an offshore service provider to ensure desired results? Let us discuss nine key practices that service providers must adopt in order to offer their clients the best services paired with optimal results, practices that help in enhancing the pros and dissipating the cons.
Every organization has certain expectations and defined business goals. When outsourcing business, there needs to be a clear understanding between the organization and the offshore company. Once the offshore company can comprehend expectations, it makes it easier for them to holistically define their deliverables. This will also give the service provider ample time to design solutions in line with company policies.
Ensuring that the offshore company prepares a project plan that includes regular monitoring, timely reporting, administrative management and regular meetings to discuss progress helps. Defining the business outcomes makes it possible to measure and evaluate the same with ease. The progress of business outcomes can thus be closely monitored once the tasks take off. Preparation of a project plan helps service providers identify the constraints and challenges that they are likely to come across and have these creases ironed out beforehand.
A reliable offshore service provider will initiate regular job reviews with the parent company to ensure that both are progressing on the right path. This includes discussion regarding confidentiality of company information and processed data as well as other information. Regular assessments will help detect errors and nip them in the bud, thus avoiding upsurge in budgets and other frauds or dissipation. The guidelines should be a combined set of rules defined by the parent and the offshoring company, thus ensuring well-defined operations in line with optimal results as the ultimate aim.
An offshoring company with processes that drive work efficiency but also concentrates on incessant improvements on the delivery front while providing value-based performance is a great asset to any organization. Adaptability to the parent company’s requests is essential and flexible processes help achieve this in an efficient manner. An all-round focus is therefore one of the most important qualities a great offshoring partner can possess.
One of the main aspects of excellent performance deliverables is when the offshoring service provider creates a framework of the performance indicators that include quantitative and qualitative measures, business outcomes and targets set. This will aid in closely monitoring performance and business outcomes on a regular basis as well as give the parent organization an accurate picture of ground realities.
Understanding the business is the prerogative of the parent organization. Yet, defining processes in line with business outcomes is the prerogative of the offshore service provider. Hence, a balance needs to be maintained on this front, ensuring that targets or results that are reasonable and achievable are presented in the first place. The calculation of quantifiable targets and profits will help reduce misapprehensions and keep expectations real. This will also aid in defining set timelines for achieving certain business outcomes and assist in regular monitoring of performance.
An offshore service provider is required to display transparency at all the levels of a project. Proper documentation of all possible business impacts and lasting solutions for possible setbacks is essential. The offshoring company’s move of listing and documenting all conceivable effects on business ensures that the parent organization is in the loop at all times. This helps in identifying ambiguities and avoiding them before they have any adverse effects on the delivery of business outcomes.
Payout caps should be initiated at regular intervals, say after the completion of a task or sub-project, to avoid instability of payment and unforeseen risks. Both parties should have deadlines for job deliverables and have detailed and timely reports sent out. Parent organizations can then monitor and evaluate the standard of performance and pay out the required amount for the chapter as agreed. This guarantees a steady monetary inflow alongside delivery excellence and is a sure win-win for both parties involved.
Offshoring companies must always gather inputs from all the teams and stakeholders that are part of the process, when preparing the ideal business model. Including or involving all the stakeholders assures open feedback and opinions from all those involved and this will help in designing an optimal business structure. These interactions will aid in defining quality and performance deadlines that are acceptable to both the parent company as well as the offshore service provider.
Today’s business market is a great place for offshoring companies to thrive, delivering performance value to the client and outsourcing partners involved. The trick lies in creating the appropriate pricing structure that judiciously utilizes all the available resources and provides business outcomes of paramount quality.
These nine key aspects act as guidelines for selecting the best offshore service provider that will not just guarantee the parent organization monetary and operational gains but will also result in mutual business growth in the long term.
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