Look for a cultural match

Outsourcing is like keeping a part of your organisation in another body, and a mismatch could lead to failure

An outsourcing relationship is like a marriageits for the keeps, in thick and thin. So choosing the outsourcing partner has to be a meticulous and detailed exercise, as you dont want to be stuck in an abusive relationship.

Sure, you must see to it that your outsourcing partner has a wide set of skills and strengths as well as a strong track record of delivering results. Another important aspect is that they must offer a competitive pricing thats a key reason why you are outsourcing, right?

Establish clear objectives: A failure to plan is a sure-shot plan to failureits not that the best-laid plans that go astray at times; its that they often are not the best-laid plans in the first place. Hence, be absolutely clear about the objectives of outsourcing from the word go. Is it about cost or process improvement or about freeing up management time for the core business? Identifying the key objectives will help determine the way you shortlist and select the partner.

Ensure alignment of cultures: Make sure the service provider understands more than just how to code or implement. An outsourcer needs to be compatible with your companys culture and business objectives, with the right experience, communications skills, and working style.

The employees of your outsourcing partner will become an extended part of your organisation and need to fit in the way your employees do.

Get the communications right: Make sure the outsourced service provider understands the project specifications. Be as detailed, and equally precise as possible. When IT functions go outside your organisation, it will result in a lot of coordination and back-and-forth communication.

The initial volume of communication and efforts exerted for coordination will be far larger than what the IT manager will exert if the function was retained internally.

Avoid short-term gain, long-term loss: A myopic approach to outsourcing is a sure-shot recipe for disaster. Decision makers often get lost in the fine print of the deal. And often, in an attempt to save the company money, the emphasis shifts to compromising on the benefits and locking prices down.

Often missing is a focus on the long-term result desired to justify such adjustments. While it is a good thing to pay attention to the cost, an equal attention on performance measurement is a must.

By paying attention to these details, you will be able to bring in quality of relationship with your provider. And thats also a key to successful outsourcing!


The author is Sr ManagerIT at Aditya Birla Group

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