Rules For Your First Outsourcing Effort

29 April 2013, Comments Comments Off on Rules For Your First Outsourcing Effort

The handling of your first outsourcing effort will define your belief on the benefits of getting into outsourcing. Let’s face it. There are businesses that thought of going into outsourcing only to pull out since it turned out to be a complete mistake. We have to realize that human experience often would see through gray colored lenses and would often highlight the negatives and often would shrug the positives. That is why it is best to wear the rose colored glasses and make most of the first outsourcing effort and avert any type of ordeal.


Rule No. 1. Knowing what you are getting into will eliminate the surprises that may come along the way. Do not jump into the outsourcing bandwagon because it is one of the trends in the industry. For all we know, your business will not have much use of engaging with an outsourcing vendor. Outsourcing is a complicated and intricate way of improving your business and if you are caught with your pants down, more often the effort to bring your business to an outsourcing vendor will backfire.


Rule No. 2. Never put all the eggs in one basket. If you do, you risk a lot of things as you expose more of your business with a third-party. Your first outsourcing effort is supposed to be an exploratory effort which will gauge if indeed your business would get a lot of benefit from outsourcing. Just consider this if you start small you have enough left to pull back when things don’t go well as expected.


Rule No. 3. Lowering down the risks by understanding the risks that may come along the way will serve you in good stead. Outsourcing in itself is a risk and each turn of the page is a risk waiting to explode if not treated with great attention. Learn about the advantages and disadvantages of extending your business through outsourcing so you will know the things that you are getting into.


Rule No. 4. The vendor should be treated as a valuable employee and imagine that when you are picking a vendor to help you realize your outsourcing goals. When you are looking for a valuable employee, you often would give a battery of test to see if the person is the right fit for the job. The same is true with your choice of vendor. Most often the key employee would not settle for a pay cut and often would demand higher wages for quality work. Take that thought when you are out shopping for a vendor.


Rule No. 5. It pays to have a fallback position each time you venture out. Having a plan B enables you to save your neck if everything fails and will give you the confidence that you have an allowance for a few mistakes to happen, at least the non-critical ones.


Rule No. 6. Communication with the vendor is a valuable key to success. It is best to draft a comprehensive communication plan or protocol that you can use in the event of the need to communicate and to resolve pressing issues and problems that may arise in the course of the operations.


If your engagement with your vendor turns sour, don’t stop and call the effort as a failure. There are a lot of factors that should be considered before abandoning the plan. Outsourcing remains as the most plausible way to get things done, with quality with the least cost.

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