P1 – Global business services
Larger as well as smaller firms often resort to outsourcing some or most of their business functions so that they can focus on core business aspects. Whatever the case may be, some key factors must be kept in mind to make an informed decision. For Global business services, there would be a significant loss of time, additional expenses, and failures as well if the outsourcing solutions are not wisely chosen. When there are numerous outsourcing firms, choosing the right one to meet your business requirements can be challenging. We have addressed this challenge in the next section. Read on to know more.
Objectives of hiring outsourcing solutions provider by global business services:
- Cost reduction
- Improved efficiency.
iii. Better focus on core competencies/strategies.
- Flexibility to meet changing business needs.
Key parameters to consider while choosing an outsourcing service provider:
1. Defining the scope of work:
A document mentioning precise details of the work to be done, business goals, brand requirements, and the best solutions for achieving the outcomes is needed to give the outsourcing service provider an idea of your needs.
2. Reputation of the outsourcing service provider:
It is important to check the reviews of the vendor before outsourcing. Factors like sticking to deadlines, being collaborative, and efficiently meeting business requirements must be checked before signing an agreement. Otherwise, it would jeopardise the reputation of your business. Enquiring about their performance with the previous clients can give you a fair idea of whether to go with them.
3. Look for expertise:
Once you shortlist some vendors, check for their passion for a project, skillset, technical expertise, proficiency in resolving complicated issues, and access to the latest tools and technologies. To get the best outcome in your project, go with vendors with expertise in the required technologies.
4. Communicate your budget clearly:
Project budget is a critical parameter that can build or ruin your relationship with the outsourcing solutions provider. Exceptional services generally come at a premium cost. It is better to finalise the budget that you can invest before approaching the outsourcing partners to be transparent while discussing the expectations and service costs.
You can check with some outsourcing providers for their offers and services to know which one matches your company’s requirements with the least expense.
5. Check for outscoring partners using agile methodologies:
Thriving in the competitive market is possible for those who successfully accommodate the ever-changing demands of customers. Agile methods come into play in this scenario and provide collaborative environments with quick results. So, if an outsourcing partner sticks to the Agile methods, they can conveniently adapt to customers’ requirements.
6. Check if the outsourcing solutions provider is flexible:
Flexibility is essential to ensure availability to resolve an issue whenever an urgent need or an unforeseen circumstance demands attention. This is mainly important for global business services if you are opting for a vendor in a different time zone.
7. Data and intellectual property protection:
The current digital era has data security and privacy as the primary concerns, especially when global business services outsource a project having sensitive information which could be mishandled. To avoid such circumstances, a non-disclosure agreement has to be signed before providing them access to any critical information. Also, a vendor must be hired to carry out security and network audits regularly to eliminate any kind of loopholes in the system. They can recommend specific tools to prevent data leakage.
8. Check for risks involved in outsourcing:
The risks associated with outsourcing something depend on the processes which are outsourced. It is quite risky to outsource core business practices as this will reduce your control over the organisation, leading to harmful outcomes.
There must be seamless communication between the offshore and onshore teams to avoid cultural, language, and time zone barriers. Taking calculated risks is the key to enabling a business to innovate and grow.Check the infrastructure before deciding between multiple outsourcing solutions providers:
Travelling to an offshore site might need investing time, but physically going there to check the employees and work processes has a different impact. It will help you easily decide on the best facility for your business. It will even let you know the people you will be dealing with. The best outsourcing partner will function as an extension of your team rather than a separate agency.
While outsourcing work to a vendor, global business services expect them to look after everything from scratch. For this, the vendor should have to be responsible enough and need the least supervision so you can focus on the core business functionalities without wasting time. Certain functional areas can build liabilities for the business and waste time and moment, which can be wisely avoided if the right partner is chosen for outsourcing.