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The top 10 reasons for outsourcing your work is as follows:

  • The operational and labour cost becomes low. If it is executed properly there are lot of chances where it directly impacts the revenue of the business house and incur lot of savings.
  • Both the combinations of outsourcing along with offshoring helps in increasing the global base of knowledge with access of most high end world class capabilities.
  • Making the internal key resources free so that they can be effectively be used in other important sectors is one of the reason in outsourcing business.
  • There are lot of times when sourcing and deploying internal resources becomes difficult as they are limited and hence outsourcing helps.
  • Companies can create a reserve capital fund by saving cost and this helps in profitability of the business.
  • Once responsibilities are delegated to the outsourced partner , the particular business unit become free from managing or even controlling that segment completely.
  • The main reason of outsourcing or off shoring is migration of risk of the companies.
  • Outsourcing helps in reaching the advantages of re- engineering.

There are lot of companies who all outsource to expand and at the same time increase access of new market domain by taking charge to connect delivery and end users more intimately.

Steps and measure of data privacy and security to be asked from the outsourcing vendor. Security to be checked is managed in all levels starting from network or personnel or site or even data. For more security one visit can be done to check the premises of the vendor and check their process of access control. External drives also should be disabled in each system. Also it has to be guaranteed that data provided by you is secured  if data is secured through email or file/folder and encryption.

One can always check into earlier references of customers. Taking contact numbers from the vendor and checking references whether there was transparency maintained in financial matters will help. A background check is important to check the credentials of the vendor. Also one can beforehand tell the vendor that contract will be terminated if there is issues in financial dealings.

Some very important points before deciding on the vendor is as follows:

  1. Number of years of experience in outsourcing domain
  2. Experience in catering all verticals of business
  3. Financial status of the organization
  4. Also taking customer references.

One needs to ensure that the vendor has enough buffer capacity and also has kept his manpower cross-trained to man employee attrition. Also make sure that any employee attrition at vendor’s place do not affect the business.

You should know this before even the project start date and ask the vendor if project timeline can be achieved or not. Discussions need to happen on the resource number who will be engaged in the project and the total man hours that will involve in the project. Apart from the meeting deadlines to be met, work quality is equally very important. Daily timesheets and weekly reviews with the vendor helps in keeping a proper track of the work in progress.

There are always chances of having any kind of disasters which are unforeseen like some hardware or software failures or even occurrence of any kind of natural calamities. In these kind of scenario the vendor should have a disaster recovery plan ready so that work doesn’t get affected. Hence outsourcing only can be done to vendors with proper policy of recovery of data, physical or disaster

The primary cause of outsourcing your business is to reduce your cost and headache. Hence you need to review with the vendor if there is any hidden cost so that more savings can be made. One can immediately check if the cost includes infrastructure or training or connectivity or even transition.

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