Is offshore outsourcing working for you?

By ExecutiveBrief Staff

Is your company looking or already into outsourcing? Here are five indicators that your company is on its way to outsourcing success.

The advent of the Internet and the continuous innovations made in information and communication technology has brought about the steady rise of a recently established business practice--offshore business development. 

Indeed, business outsourcing has caused quite the global stir as rapidly increasing number of buyers are finding it more convenient and cost-efficient to tap into the diverse talent pool of highly skilled individuals abroad (vendors) to perform various areas of business including Information Technology (IT), customer services, telemarketing, accounting, market research and development, and even animation.  And that is just the tip of the iceberg.

If your company is looking into or is already practicing outsourcing, what then are the key indicators that you are already en route to outsourcing success?

If you’ve selected the right vendor.
Choosing the right vendor for a long term business relationship is imperative.  By and large, outsourcing success depends on the relationship established between buyer and vendor.  Several factors come into play in the selection process.  A common practice of companies looking into outsourcing would be to depend on this prime factor: location, location, location. 

However, eTelecare President Derek Holley pointed out in an interview with EBS that a common mistake of companies in the offshore business is choosing a country before choosing a company.  A company’s outsourcing success is more largely dependent on the vendor’s abilities than their location.

In short listing vendors, Holley shares that his first qualifier is size.  It does not necessarily mean that he would pick an outsourcer with 4,000 seats over one with 2,000 seats; but if both are profitable, then they are clearly doing something right.  He also pointed out that although he does not automatically eliminate companies having only 200 to 300 seats, he wouldn’t entertain them unless they have proven themselves through sustained growth.  Client references also help in reducing the list.  Vendors who have lost more than gained clients in the last year do not make the cut.