Outsourcing: Evaluating the 3 Critical Areas of Efficiency

On November 26, 2012, in Outsourcing, by Business Development Group
The following are the three critical areas that need to be evaluated regularly to ensure efficiency in your outsourcing program

The following are the three critical areas that need to be evaluated regularly to ensure efficiency in your outsourcing program

There are many factors that affect the efficiency of your outsourcing operation. For an organization running an outsourcing operation in an offshore location, operational efficiency is naturally the top priority. However, ensuring efficiency in your offshore outsourcing program goes beyond operations. Just like any operating machine that needs regular maintenance checks, your outsourcing operation also needs to be checked and evaluated regularly to keep things running smoothly. The following are the three critical areas that need to be evaluated regularly to ensure efficiency in your outsourcing program:

Human Resources

Employee attrition is one of the major issues that an outsourcing firm needs to focus on. High staff turnover can incur huge costs including: recruitment and training costs, productivity losses, and payout commitments. Nevertheless, for an outsourcing operation to continue running smoothly, the Human Resources Department must coordinate closely with Operations and must be kept constantly updated about current needs for additional people. More importantly, the best practice would be to maintain a pool of talented applicants ready for any recruitment and training emergencies.

Related Article: The Cost of High Staff Turnover in BPO Companies

Information Technology

The Information Technology aspect of your outsourcing operation is indeed one of the most important areas to keep track of. There is of course, the issue of data security and compliance to international standards. For a firm looking to outsource certain business functions to external or offshore outsourcing service providers, it is important to ensure that your selected offshore outsourcing partner has the necessary security protocols for data security.

Related Article: Offshore Outsourcing Tips

Operations

Most outsourcing projects are heavily defined by quality, and output volume. Basically, regular management evaluations involve checking compliance to performance metrics. However, a usually overlooked aspect is the checking of the parameters by which these performance metrics are based. It is crucial to conduct regular evaluations on the effects these parameters are having on operational efficiency.

Related Article: Offshore Outsourcing: Signs Your “Long-Distance” Relationship Is In Trouble

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