While many businesses have come to realise the benefits of outsourcing, there are a few who are still not convinced that outsourcing is the best option. With a variety of outsourcing solutions being provided, businesses face the problem of having to work to work with multiple outsourcing vendors. Besides, as more and more work is outsourced, the problem is compounded by each outsourcing vendor working on a number of projects. Based on business size, a company may have 12 to several hundred individual contracts with every vendor. This creates a number of administrative, quality monitoring, accountability and reporting problems. This leads businesses to ask themselves whether outsourcing is really worth the risk.
Here are some of the common concerns:
Difficulty in monitoring vendor accountability when dealing with multiple outsourcing environment
Outsourcing technology from multiple vendors can cause finger pointing when things go wrong. The solution does not lie in using a single vendor. The answer lies in asking each outsourcing vendor the question about how they will deliver top quality outcomes without compromising the service levels of the business. In the IT industry this would mean, the outsourcing vendor should have expertise across a range of software, hardware, and applications.
Loss of control of budget, resources, technology utilisation and vendor selection by using a single vendor to manage a multi-vendor environment
Outsourcing tasks to a single vendor who has the size, expertise, technology and demonstrated ability to deliver the goods, can actually result in greater control of tasks and deliver measurable business results. Have a frank discussion with your outsourcing vendor about their commitment to minimising commercial risk, minimising operational and administration involvement and providing consistent service levels. Your outsourcing vendor should be able to provide references, outline cost savings, and define how and when your staff have the final role indecision-making.
The difficulty in deciding what to outsource and what to do in-house given the rapid growth of technology
Technology is growing at such a pace that what is current today becomes obsolete tomorrow. You need an outsourcing partner who can adapt to your environment as your requirements change. Ask them if they offer a support management continuum that covers the range of support services- from an environment controlled by customers to a fully outsourced operation. You cannot predict the future, so you need to ensure that your outsourcing partner is ready to support you in any situation.
Outsourcing management of vendors will add a strain on the budget
Some of the main reasons for using an outsourcing partner include reduction in the demand for in-house resources, reduced support costs, faster turnaround, reduced risk of failure, greater user satisfaction, improved visibility, support quality control, and increased flexibility to deploy resources as needed. Organised this way, outsourcing the management of several vendors actually reduces costs and increase the value that technology brings to the business. Find out how your outsourcing partners plan to help you achieve a better alignment between business needs and service levels. Further ask them about the role their role in performance management to ensure that their performance is on target.
An outsourcing partner can slash workload and costs and raise productivity. Employee’s time can be allocated to meet core business requirements. Do your homework, find the right outsourcing partner, ask the right questions involve your staff in strategic decision making, and reap the benefits of outsourcing as your environments change and capabilities expand.