Uploaded on Oct 11, 2021
Outsourcing is quite common in many organizations today. At the same time, when measured in terms of output, not every outsourcing decision achieves its objectives.
Essential Outsourcing Tips for Better Decision Making
Essential Outsourcing Tips for Better Decision
Making
Satya K Vivek
Writes for Gadgeon.com,
IoT software development services from Gadgeon
and Gadgeon-IoT software development company.
Outsourcing is quite common in many organizations today. At the same
time, when measured in terms of output, not every outsourcing decision
achieves its objectives. In this context, a company or organization needs
to be aware of the fact that serious risks are involved if things are not
planned properly. Relying on the services of a remote workforce even
partially in a project can lead to some anxiety. However, if the decision to
outsource is backed by proper groundwork and planning, the business will
reap benefits in no uncertain terms.
This article shall focus upon some important guidelines. These are the tips
that greatly help businesses in arriving at the right decision regarding
outsourcing.
Proper planning
Firstly, planning must be foolproof. The company must have good clarity
about the operations that have to be outsourced. The business should
outsource only that work, which cannot be completed with its existing
capabilities. Likewise, outsourcing should also be considered when the
tasks can be executed with the same quality cost-effectively.
Small beginning
This is especially more relevant to small businesses or entities that just
began their operations. The company should start by outsourcing only
small and uncomplicated projects. As the organization keeps on gaining
experience and increasing its competencies, it can then outsource more
complex operations.
Assess costs
A business must have an idea about the costs related to outsourcing.
Organizations should understand this pivotal aspect. Once the services are
outsourced to an external entity, there are going to be multiple costs that
were not anticipated in the initial stages. You have to keep this facet in
mind while planning. A comfortable budget has to be set aside
accordingly.
Avoid hastiness
A company would be immensely helping its cause if it refrains from hastily
choosing a service provider based only on the cost aspect. Businesses
typically give high weight-age to vendors offering services at the best
price! However, choosing a vendor purely on price might lead to other
problems. It’s more important that the personnel of the outsourcing firm
are skilled enough to meet your requirements. In this regard, the best
thing would be to carry out extensive research and compare the
capabilities of the different providers.
Feedbacks & reviews
Businesses have to make a careful note of various feedbacks and reviews
about the vendors. If possible, they should interact with
people/businesses that have already outsourced their activities to the
concerned vendor. There cannot be a more dependable way to assess
credibility than that. You will then obtain clear details about the service
provider’s reputation. This will be about the quality of work, adherence to
deadlines, and other relevant aspects.
Clear objectives
Another significant tip is that, in the early stages; the business must come
out with its objectives and specifications that the vendor should meet. All
that should be communicated in writing using a clear unambiguous
language to the vendor and all other stakeholders. Even a small
negligence, could affect the outcomes expected of your outsourcing deal.
Enable transparency
Since the outsourced work is done at a distant geographic location, the
business has to be particular about transparency. The contract to include
terms regarding the communication and governance process and
protocols to be adhered to. Latest digital technologies can be leveraged.
The above discussed points are general guidelines that will help as a
starting point. Each organization and decision-maker may choose their
own framework keeping the organizational culture, maturity of
development & operational processes, in-house capabilities etc. in mind.
About Gadgeon
Gadgeon is known for its expertise in Industrial IoT and engineering
excellence. We connect devices, operations, and processes to create
business value, and revolutionize enterprises with the power of data. As
an end-to-end technology services company, we successfully enabled the
digital journey of customers with critical digital services ranging from
embedded systems, cloud app development, mobile app development,
data & analytics, application modernization, emerging technology based
solutions, and testing & test automation across the industries such as
connected factory, telecom & datacom, digital healthcare, CSPs, and
home & building automation.
Thank you for time in reading this article!
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