Maximize Your Earnings with Proven Strategies for Outsourcing

 Maximize Your Earnings with Proven Strategies for Outsourcing

During the negotiation phase, your organization should lay the groundwork for a successful long-term offshore outsourcing collaboration with another company. The Service Level Agreement is the main point of this discussion session.
According to the Outsourcing Times (http://www.blogsource.org), the goal of outsourcing is to benefit the host organization. When it comes to outsourcing, though, there are several schools of thought on how to get the most out of it while keeping risks to a minimum. The following are some recommended procedures to follow when establishing your SLA, working with your selected supplier, and keeping the relationship going strong.

Offshore Outsourcing: Five Essential Guidelines:

1. Foster long-lasting connections among important members of management.

Key management members of both teams need to have a solid grasp of one another's roles and responsibilities in order for their interaction to be productive. Research on successful outsourcing projects has shown that strong managerial chemistry and strong peer friendships are key factors in building lasting connections that deliver tangible results.

2. Outline a Measurable Goal.

Clear and measurable goals that outline what is expected in terms of service quality make for a good performance metric. Remember that they are negotiable, but if you can obtain SLAs for similar projects, they will be good starting points. Whatever you do, before implementing the SLA, make sure that both organizations understand and agree upon its specific goals and expectations.

3. Establish the Punishment and Incentive Plans in Advance

By using performance-based pricing criteria, the provider should be motivated to achieve or above the customer's specified expectations. Incentives should be provided to the service provider if their performance goes above and above expectations, and penalties should be levied when objectives are frequently missed.

Reviewing on a regular basis is essential for sustaining healthy relationships.

Hold formal review meetings on a regular basis. During the sessions, both parties can review the teams' progress and decide on the company's future targets. During these meetings, they can also talk about product evaluations and deliverables. Remember that opportunity costs and shifting market conditions may necessitate ongoing revisions to performance goals.

5. Overcome Cultural Barriers through Effective and Frequent Communication

It is essential for all parties engaged in an outsourcing engagement to recognize and work through their cultural differences. Having social gatherings, sharing business histories, taking part in each other's quality initiatives, etc., can help the two organizations better understand each other's cultures. Maintaining open lines of communication is crucial for every relationship. Sending a dedicated employee to the BPO site for a few months to aid with implementation understanding could be a good idea.

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