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WHY OUTSOURCE ?

" If you deprive yourself of outsourcing and your competitors do not,
you're putting yourself out of business. "
- Lee Kuan Yew

Outsourcing can be defined as, "the strategic use of outside resources to perform activities traditionally handled by internal staff and resources." Outsourcing is a strategy by which an organization contracts out major functions to specialized and efficient service providers, who ultimately become valued business partners. And in some cases, outsourcing involves the transfer of employees from the company to the outsourcing company.

Outsourcing is the norm of the modern world. Today various companies, from all the corners of the world, want to get their work done without going through needless office ordeals, so outsourcing or offshoring has caught their attention. When outsourcing has gained such greater momentum, India has emerged as the ultimate outsourcing destination. Hirekhan, one major group from India, is the best offshore service providers of myriad services.

Why opt for outsourcing?

There are many benefits of outsourcing work. Few reasons to outsource work are -

  • Hire relevant talent
    In offshore businesses, customers have to hire only relevant talent to meet their business goal. They can cut the subsidiary costs and do away with payroll employment.
  • Access a wider choice of service providers
    Outsourcing options opens the world market for hiring service providers. Customers opting to outsource can select any service provider, from any corner of the world. The probability of finding a service provider, who meets all the requirements like quality work, effective cost, low risk and timely service, increases.
  • Access to international standard professionals
    Outsourcing allows organizations to get connected with professionals around the globe. Customers don't get restricted to the talent available within their geographical boundaries. Even a professional, from any part of the world, with expertise in par with international quality standard is accessible.
  • Save office setup costs
    Offshoring can cut down the office setup and infrastructure building cost. A customer who has a steady flow of business can outsource the services related to his/her business to external agencies and can earn profit without even having a fully equipped office, adequate resources and proper infrastructure. In other words, fixed costs can be converted into variable costs.
  • Focus on core domains
    Customers can outsource services of secondary importance or allied to the main business line to external vendors and focus on the core domains of their business. They can manage things of prime importance without diverting their attention to handle trivial things.
  • Ensure better quality
    Outsourcing lowers the risk of bad quality by adding layers of business and quality process to ensure a better quality product. Each service that is outsourced passes through a series of review cycles till the work is finalized, in this way, an additional quality check process gets introduced at every stage of the main product development or service providing process.

But these reasons aren't enough to implement a successful outsourcing program. In fact, companies must ensure that they consider all of the components and are able to meet the requirements for successful outsourcing.

Requirements for Successful Outsourcing

In the early days, cost or headcount reduction were the most common reasons to outsource. Today, the drivers often are more strategic and focus on carrying out value-adding activities in-house where an organization can best utilize its own core competencies.

The critical areas for a successful outsourcing program include:

  • Clarity concerning company goals and objectives
  • A strategic vision and plan
  • Vendor selection
  • Relationship management
  • Properly structured subcontract and vendor agreements
  • Open communication with affects stakeholders
  • Senior leadership support and involvement
  • Careful attention to personnel issues
  • Short-term financial justification

Let's dive a little deeper into two of these requirements: open communication and executive and senior leadership support.

Open Communication

Open communication and executive support are particularly important to a successful outsourcing process. Additional consideration should be for a workable Service Level Agreement (SLA), which is openly available, to all staff involved.

Whatever the outcome of the outsourcing arrangement, managing change is fundamental to the success of the program.

Assessing stakeholder requirements is the first part of this process, and having open channels of communication during this time are vital. Everyone concerned should be involved in the process.

Executive Support

Strategic objectives, such as outsourcing initiatives, must come from the top echelon of a company. Senior management must articulate the goals and objectives of the outsourcing initiative and communicate how the process will benefit the organization.

Today's managers are looking ahead and recognizing that the responsibility for ensuring the success of their enterprise's outsourcing initiatives does not stop when the ink has dried on the contract, but unfortunately, this has not always been the case.

How to Avoid Failed Outsourcing with Relationship Management

The combination of uncertainty and lack of attention to critical details has created a present day scenario where, according to The Gartner Group, 25 percent of outsourcing contracts will be renegotiated or cancelled within three years. Ongoing management of the relationship is important. Senior management must stay involved during the implementation of the contract.

Not only should there be a clearly defined escalation procedure, but senior management should meet at appropriate intervals to discuss the outsourcing relationship. Meetings also should be held at the operational level to address the working of the outsourcing contract in practice, to identify and resolve any problems that have been encountered, and to agree on changes to ensure continued satisfaction

Why outsource to Hirekhan?

  • Ease and Speed in everything we do.
  • Learning, Understanding and Realisation of Client's end to end requirments.
  • Ability to manage all client needs with our wide range of cost effective and hassle free services.
  • Our creative and out-of-the-box solutions have been especially designed to cater to the unique requirements of different industries.
  • With our passion and commitment for quality, client will always experience accuracy and quality throughout the outsourcing process.
  • Customer satisfaction has always been the number one objective of every employee at Hirekhan.
  • We employ English & other major languages speaking and highly skilled personnel who can communicate effectively with the customers across all possible outsourcing domains.
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