How to Outsource Services Effectively (Part 2)

On August 17, 2011, in Outsourcing, by Business Development Group

Outsourcing service jobs offshore is largely prevalent especially in the area of transcription and call center. Businesses are citing foreign contact centers and facilities around the globe for growth of untapped markets.Every business establishment has limits on its available resources. Outsourcing allows resources to be diverted from non-core activities to customer-facing activities that provide a greater return. With careful planning , your organization can focus more on productive and important activities.

Outsourcing service jobs offshore is largely prevalent especially in the area of transcription and call center. Businesses are citing foreign contact centers and facilities around the globe for growth of untapped markets.

As cited by International Association of Outsourcing Professionals (IAOP), a professional organization involved in the industry, as well as offshoring and shared services – during the initial stages answers the important question; Is outsourcing this business process or function apt for the organization? What are the requirements? If the answer is amenable, the subsequent stages of the process covers its implementation and ongoing management. Each stage has a clearly defined and straightforward question it seek to answer.

Hereunder, a detailed outsourcing management process should address:

1. Identifying outsourcing opportunity.

  -Develop concept.

  -Perform high level strategic review of operations.

  -Identify corporate direction.

  -Develop “high insight” reports on outsourcing competitive intelligence.

  -Perform business comparative or situation analysis.

  -Identify outsourcing potential.

  -Get executive concurrence and sponsorhip.

  -Assign steering committee.

          Read related article: Knowledge Process Outsourcing: Moving Beyond Transcription Services

2. Perform preliminary opportunity assessment.

  -Identify current processes.

  -Understand user needs.

  -Identify internal baseline costs and organization.

  -Develop process requirements.

  -Perform risk assessment analysis.

  -Explore supplier alternatives.

  -Develop preliminary outsourcing business case.

   -Present to business prime.

           Read related article:Outsourcing Services Made Our Client Earn 15M

3. Develop and evaluate business case.

  -Finalize business case.

  -Verify customer approval.

  -Verify board approval (where needed)

           Read related article:Outsourcing – Not a Best Kept Secret Anymore

4. Establish outsourcing relationship.

  -Implement request for proposals process.

  -Develop outsourcing contract.

  -Finalize human resources plan.

  -Finalize deal structure.

  -Negotiate contract.

  -Ratify contract.

  -Execute contract.

           Read related article: Outsourcing Risks and How to Avoid Such

5. Implement the solution.

   -Communicate project, team, and leadership.

   -Develop detailed transition plan.

   -Pilot development, test, review

   -Finalize communication plan.

   -Implement new organization structure.

   -Transition activities.

   -Monitor transition and implementation.

          Read related article: In Brief – Definition of Outsourcing and Offshoring

6. Manage ongoing relationship.

   -Perform daily management activities.

   -Monitor performance.

   -Implement relationshipmanagement processes.

   -Complete outsourcing business plan.

   -Change management process.

   -Assess strategic review.

   -Reconfirm business case.

   -Review outsourcing performance assessment model.

Quick test – 6 questions. 2 minutes of your time

ready to outsource assessment resized 600

If you are one of the many organizations who are seriously considering outsourcing any of your business processes as a strategic move to increase efficiency while reducing costs, you are right on track.

13 Responses to “How to Outsource Services Effectively (Part 2)”

  1. bible life says:

    I really enjoy coming to your website! your enticing way to see things is what keeps me interested. Thanks so much!!!!

    • Northern Worx KPO says:

      We, at Northern Worx appreciates your shared interest in outsourcing. We would like to introduce you to our programs that can potentially drive more value and efficiency to your efforts. Would you be available for a 30 minute conversation on on your most convenient time and date, we would be happy to discuss the matter further on how we could support you? Looking forward to hearing from you.

  2. I visit your site all the time. I love your articles and blogs

    • Northern Worx KPO says:

      NorthernWorx appreciates your interest in the blog. We are always grateful and rest assured, our Contents and Creative Team will provide you with the daily updates and trends most helpful in line with the industry. Here's an interesting read; http://markets.financialcontent.com/stocks/news/read/19467588/Outsourcing_Company_Changes_Name_to_Northern_Worx and always feel free to contact us should you have any comments, suggestions or any other questions. Thank you! NorthernWorx KPO

  3. Hey just wanted to give you a quick heads up. The text in your post seem to be running off the screen in Firefox. I'm not sure if this is a formatting issue or something to do with web browser compatibility but I thought I'd post to let you know. The layout look great though! Hope you get the issue fixed soon. Many thanks

    • Northern Worx KPO says:

      Thank you very much for the input! Also, NorthernWorx appreciates your interest in the blog. We are always grateful and rest assured, our Contents and Creative Team will provide you with the daily updates and trends most helpful in line with the industry. Here's an interesting read; http://markets.financialcontent.com/stocks/news/read/19467588/Outsourcing_Company_Changes_Name_to_Northern_Worx and always feel free to contact us should you have any comments, suggestions or any other questions. Thank you! NorthernWorx KPO

  4. KTM Bikes says:

    never thought of that b4

    • Northern Worx KPO says:

      We certainly appreciate your interest in the blog. We are always grateful and rest assured, our Contents and Creative Team will provide you with the daily updates and trends most helpful in line with the industry. Here's an interesting read; http://markets.financialcontent.com/stocks/news/read/19467588/Outsourcing_Company_Changes_Name_to_Northern_Worx and always feel free to contact us should you have any comments, suggestions or any other questions. Thank you! NorthernWorx KPO

  5. BPO man says:

    I'm thinking of building my own BPO business. Do you think that is viable?

    • Northern Worx KPO says:

      We, at Northern Worx appreciates your shared interest in business process outsourcing. We would like to introduce you to our programs that can potentially drive more value and efficiency to your efforts. Would you be available for a 30 minute conversation on on your most convenient time and date, we would be happy to discuss the matter further on how we could support you? Looking forward to hearing from you.

  6. Fantastic blog, I love your website design.

    • Northern Worx KPO says:

      Thank you very much! NorthernWorx appreciates your interest in the blog. We are always grateful and rest assured, our Contents and Creative Team will provide you with the daily updates and trends most helpful in line with the industry. Here's an interesting read; http://markets.financialcontent.com/stocks/news/read/19467588/Outsourcing_Company_Changes_Name_to_Northern_Worx and always feel free to contact us should you have any comments, suggestions or any other questions. Thank you! NorthernWorx KPO

  7. [...]           Read related article: How to Outsource Services Effectively. [...]

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