The Right Way to Outsource
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Presented at InnoTech Oklahoma 2013. All rights reserved.
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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
- 8. CHOOSING YOUR OUTSOURCING PROVIDER 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
- 14. ALLSHORE GLOBAL RESOURCES LLC. www.philwebsupport.com WWW.ALLSHORE.US
- 15. MAKING IT WORK Planning Communication 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
- 19. ANY QUESTIONS? ALLSHORE GLOBAL RESOURCES LLC. WWW.ALLSHORE.US
Notas do Editor
- “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