Outsourcing & Offshoring: Considerations For A Successful Global Enterprise

Posted: Nov 20 2019, 10:55pm CST | by , in Technology News

 

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Outsourcing & Offshoring: Considerations for a Successful Global Enterprise

Outsourcing and offshoring now form a large share of the IT market. Many companies employ these operational models to get rid of unessential tasks and expand faster. However, turning to third parties may not be as effective if there arises any misunderstanding or it’s unclear how to cooperate with the vendor (for the business to benefit).

To avoid confusion and ensure a fruitful and flawless cooperation, mind the following considerations on how to make outsourcing vendor involvement less painful.

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  1. Ethical considerations

In many cases, the transfer of tasks to a third-party is ethically questionable; thus, when starting to delegate some of your business operations, inform your in-house team about the changes they might face and explain what those adjustments mean to them (e.g. concentration on essential tasks).

  1. Considerations on processes

Thoroughly consider which tasks to delegate to the vendor’s employees. To do so, evaluate and rank your business processes according to their value – a higher rank signifying more crucial business activity. To make sure that your business functions as before, keep the responsibility for top-ranked processes within the in-house team.

  1. Communication considerations

Create conditions for efficient communication. As your in-house staff members are very likely to interact with the service provider’s team, make sure to explain cultural differences and set clear rules for their interactions (e.g. time preferences, tools, etc.).

  1. Quality considerations

Set up quality standards and control that your service provider adheres to them. Once you have communicated the expectations clearly, the vendor’s workers will understand how to complete those tasks, so that you are satisfied with their work. As a result, there will be fewer quality inconsistencies or complaints.

  1. Privacy considerations

While working with an offshore or an outsourcing vendor, you don’t want your confidential information to leak out. Choosing a reliable partner is not always enough. It’s always advisable to take extra security steps, such as signing an NDA with strict rules and penalties in case of non-compliance.

  1. Legal considerations

When you start working with an offshore vendor, study the contracting conditions. Since some jurisdictions have no regard for IP rights, make sure your intellectual property rights are respected. As well, if a dispute arises, solving it will require specific jurisdiction. Be sure to indicate these terms in your agreement to avoid any problems in the future.

In case you’re not a fan of outsourcing in its standard form, there is an alternative. For Tech companies interested in a BPO Ukraine offers numerous opportunities. For instance, Alcor can provide a company not only with the support of their operational activities but also assist in setting up an office in Ukraine - where one can find a lot of top-level IT talent.

Companies like People.ai, Tonic Health, and BigCommerce already benefit from the Alcor Business Model. They have their own development offices in Ukraine, enjoy complete control over the team and development process, and promote their own brand. Alcor is ready to help other companies as well, and their services can become your shield against operational headaches - so you can devote more time to your product.

With all these considerations, take the time to decide if you need offshoring/outsourcing, or would it be better to just move into your own office? In the short run, just delegating tasks may boost your business, yet due to the lack of involvement / initiative or lack of impactful culture with third-party vendors, it might be best only for the short-term; therefore, pay special attention to your specific needs.

When exploring the opportunities for outsourcing or taking your activities offshore, pay attention to the above-mentioned aspects. Consider all the pros and cons before starting a new partnership. Such an approach will help you to take a step in the right direction.

This story may contain affiliate links.

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The Author

<a href="/latest_stories/all/all/2" rel="author">Luigi Lugmayr</a>
Manfred "Luigi" Lugmayr () is the founding Chief Editor of I4U News and brings over 25 years experience in the technology field to the ever evolving and exciting world of gadgets, tech and online shopping. He started I4U News back in 2000 and evolved it into vibrant technology news and tech and toy shopping hub.
Luigi can be contacted directly at ml[@]i4u.com.

 

 

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