Ways to Reduce Outsourcing Risk

Outsourcing to India is a business strategy increasingly being exercised by businesses all over the world to reduce current costs and increase value of their operations. It however is marked with certain risks and as companies look to push out more of their operational needs to outsourcing partners, need of a careful planning has all the more increased. Though organizations that undertake outsourced work have their own rules to ensure safety of data, dysfunctional service provider relationships may happen and can force a failure in the entire process.

To know how to reduce outsourcing risk, it is first important to highlight the main types of risks associated with this process – timely delivery, quality of work and financial risk. These main factors can contribute to major problems especially when there are insufficient laws to control results.

Here are few tips to help organisationsreduce outsourcing risks:

1.        

WWork on methodology

Your outsourcing partner is expected to give a specific methodology and project execution details while bidding for a project. This is the most explicit part of any vendor’s business proposition.

2.       Make success a joint responsibility

If you are growing, your outsourcing partner should also get benefit of it especially if it is due to their project. Ensure success by frequent and timely feedback by stakeholders and internal and external customers.

3.       Stick to agreed timelines

Clearly identify the timelines along with decision-making criteria in advance. This will give your outsourcing partner time to meet your business goals effectively.

4.       Let outsourcing generate a favourable return for everyone

The benefits are not only for you to reap. Make sure your business model is lively enough to absorb any kind of change and ensure maximum project return is clearly marked while strategising the project execution methodology.

5.       Align end to end

Aligning is important for success in outsourcing. Since outsourcing to India relies on resources working for a different company, sometimes changing them can affect your project control and intellectual property. To avoid this, align your outsourcing business model to your outsourcing vendor and verify that the policies, especially the compensation strategy of the partner fits well with your project goals.

_______________________________________________________ About the Author: Nitima is a seasoned content and SEO article writer and has worked on projects related content writing, blog, brochure writing and creating marketing collateral. She also has hand on experience in technical and business writing. You can find more about her work from her website WRITING ROUTES Nitima also maintains a blog - Offbeat Spirituality which gets around 2500 hits every day.