Success Factors for Outsourcing: Obtain Internal Support and the ...

Marketing the rationale of the outsourcing decision internally across the company is another best practice in an outsourcing initiative. Outsourcing can have a significant impact on the daily work of employees across all areas of the company. As such, it is important to build support and generate enthusiasm rather than fear and resentment for the outsourcing decision.

An outsourcing initiative is a business strategy designed to improve business operations, return-on-investment, and even customer-loyalty. Understanding that there is no ?one-size-fits-all? solution in outsourcing, advisors and analysts agree on some fundamental practices that can set the outsourcing decision on the right path. In the previous article, Success Factors for Outsourcing Part 1, the first 2 factors have already been discussed: (1) setting goals and understanding risks, and (2) determining which factors to outsource. By considering these factors, a company can now set the stage for the next processes involved following the decision to outsource to an offshore location.

Success Factor #3. Build Internal Support and Commitment

Marketing the rationale of the outsourcing decision internally across the company is another best practice in an outsourcing initiative. Outsourcing can have a significant impact on the daily work of employees across all areas of the company. As such, it is important to build support and generate enthusiasm rather than fear and resentment for the outsourcing decision.

More importantly, support for the outsourcing initiative must begin at the top. Companies are more likely to be successful when executives and the entire stakeholder community support the outsourcing decision which involves commitment of skilled resources with a shared vision and understanding of the company?s rationale of the outsourcing decision, its specific goals and expectations.

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Success Factors #4. Select the Best-Suited External Partner

What makes outsourcing a strategic business decision is not the process itself but the goals and objectives you have set to be achieved. However, evaluating potential outsourcing service providers simply by their ability to meet your company?s expectations is not enough. Recent trends in outsourcing point to a new perspective in vendor selection: a return to value. Potential outsourcing service providers are now being evaluated not just on their capability to deliver what?s cited on the contract but also for their ability to extend the business value of outsourcing? driving strategic growth, as well as sustainable business benefits and innovation.

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Sources:

Linda R. Dominguez. The Manager?s Step-By-Step Guide to Outsourcing. McGraw-Hill Companies. 2006.

IT Business Edge. Six Key Success Factors for Outsourcing. Allied Digital Services. 2010.

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