Outsourcing, or assigning a defined project or a business process to an external party domestically or internationally, has gained increasing significance as a way to improve corporate process, maintain operations and reduce cost. Its popularity is based on the ability to enhance and streamline company services, while allowing a focus on the company’s core activities. Although some companies may be concerned about how outsourcing affects their relationship with their customers, in many cases outsourcing brings a number of advantages – even for clients.
Will outsourcing bother my customers?
By utilizing competitive international opportunities, the financial costs of process relocation along with benefits from process handover play a useful role in company development strategy and business expansion. Keeping central outsourcing management guidelines in mind, outsourcing can be a compelling, competitive asset to the company. It doesn’t just bring benefits of cost and improved processes to the company, it can also add to the predictability and scalability of daily customer service delivery and user satisfaction.
Through a well-implemented outsourcing strategy, things such as web application maintenance and updates can be completed quicker, resulting in more satisfied users, which leaves more time for client acquisitions. Moreover, a time zone difference can act as a benefit in a scheduled completion of tasks. For example, Eastern Europe is 6-8 hours ahead of United States, so majority of the work is completed before US-based colleagues come into work. On the other hand, the importance of choosing a good partner plays a crucial role.
Cost reduction vs. Product quality
While a cost-concious approach is of importance in outsourcing decisions, and lower operating costs often mean cost reduction not just for the company but also for their customers, outsourcing is not always about cutting costs. Outsoucing can improve product quality, make business processes more efficient, and free funds for more innovation, resulting in an overall better product or service. The choice of outsourcing locations and partners should reflect the future objectives of the company – and with a dedicated technology partner cost reduction and product quality do not have to be mutually exclusive.
Successful partnerships – what to do first
Ultimately outsourcing results are only as good as the relationship with the outsourcing provider. Since it’s the results that matter (to the company and to the customers) it is a good strategy to select companies that have established internal systems, certified processes and that can become the intermediary between the client and their chosen outsourcing location to get the best local talent. As in any partnership, choosing a well-focused professional with local knowledge can make all the difference in the implementation of a successful, motivated outsourced team. Finally, the relationship needs to be constantly managed; a strategic approach and responsible management of the distributed team are key to successful outsourcing results that satisfy product quality and customer demands.
More information on this topic? Download the “Who benefits from outsourcing” white paper.
Photo via Graphicstock