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Outsourcing Strategies

How to select an outsourcing or offshoring partner?



07.08.2008 08:33:12 It is always dangerous to make sweeping generalizations about such a vast, varied, and rapidly changing space as India’s or Mexico’s outsourcing capabilities. Nevertheless, recent corporate experiences in outsourcing do suggest a check list of success factors in identifying the best match between a particular enterprise and its potential offshore/nearshore partners.

(live-PR.com) - The model employed below should help the reader sort out his/her organization’s priorities in selecting and establishing an appropriate and effective offshore partnership. Some of the Factors and their Observations for selecting an outsourcing partner are :

* Cost : Like any other IT solution, be sure to base your cost decision

 

on the total cost of ownership (TCO), including the full life-cycle of development, infrastructure, hosting, maintenance and support, and any other costs that might enter into your outsourcing decision. Establish a TCO model from the outset and go into negotiations with a realistic view of what your company actually needs from its offshore partner(s).
* Appropriate Expertise : In a global market where some skills are scarce and others are in high demand, detail the business and technical knowledge required to address your needs and then map these requirements against the outsource team’s skills and experience. Be sure to get a formal commitment that locks in the specific people (if appropriate) as well as the skills required to meet your needs.
* Quality controls,performance history,time-to-market,capabilities : Employ industry standard metrics against the past performance of the outsourcer. Beyond specific certifications, like ISO 9000, look at the size of projects/contracts under management, on budget and on time delivery rates, and customer satisfaction data. And demand reference contacts with existing customers whose business and outsourcing demonstrate needs are close as possible to your own requirements....continued at www.outsourcingstrategies.com/Outsourcing/How-to ..

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John Parker
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