It happens that many companies specialize in outsourcing, motivated by the large amount of work, and lower the level of service offered. It is not only the consultant’s fault, but also the client who asks for very cheap prices and we already know about peanuts and monkeys, right?
We all know that outsourcing has received some negative reputation recently. But who can blame them? Companies that offers outsources usually uses cheap labor and therefore the work quality is not what you should expect when it is done inhouse. So is there any benefit in outsourcing?
I understand that in large companies it is often difficult to manage the hiring of resources and that outsourcing is a very comfortable way of working. The amount of projects and jobs is such that it is difficult to manage outsourcing well. Many companies hire IT outsourcers from India or Philippines, but that decision comes with risks of outsourcing IT services.
During my tenure working for multiple medium sized IT companies, I would like to share my thoughts on how a company can outsource successfully and keeps the work quality AND margin intact.
1. Minimum Outsourcing
If we have made the decision to subcontract a part of our company’s ICT services to a third party, it would be great to verify that there are no chain outsourcing. In the end we will have in our house working a professional who is hired by someone who in turn is outsourced and we find a very poor level of service, but of course, what is that worker charging that really comes to give us the support?
If we demand that subcontracting not be made, but that contracts be made for the work and service of the workers involved in outsourcing or, even, that they are on the staff of the consulting company, the quality will be much higher and everything will be much more controlled There will be less staff turnover and the final commitment will be more appropriate.
2. Pay Appropriate Prices
Outsourcing is not saving. If we want to have less expenses, it will be better if we hire someone on our company’s staff. But of course, then we have the problem of possible casualties, training, motivation, etc.
If we want to have quality outsourcing we will have to pay for the service at its correct market price. We will have good professionals, committed to the project and the work will be carried out in a beneficial way for all parties. A good outsourcing can be wonderful for the end customer.
3. Synthetic and Precise Meetings
Why do you waste so much time in unnecessary meetings? We are all professionals and adults who have to know our role in a project. If there are good professionals in charge of outsourcing management with small adjustment and information flow meetings, it has to be more than enough.
And the problems must be attacked and solved at the root. If there is someone involved who is generating problems, what needs to be done is to get him out of that project and let the others work in peace. They are painful and hard decisions to make but that is a part of the responsibility that people in charge of outsourcing have to assume.
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4. Controlled Worker Flow
One of the main problems that I see in outsourcing, which is usually a reason for controversy, is that a worker who is working in the consulting company that gives outsourcing, becomes hired by the end customer.
This to me is most natural. The client feels comfortable with that professional and wants to incorporate it into a template. It has happened to us in Ncora more than once and I am proud to have motivated this hiring and not to have been any fault either for the worker or for that of the final client.
Obviously it has to be something that is agreed upon at the start of outsourcing so that there are no suspicions by either party. Knowing that it is something that can occur, it is better to make clear what is going to be done by both parties. It would also be reasonable for the subcontracted company to receive compensation for the search for the resource and its proof in the client.
5. Excellent Communication
I never tire of repeating that communication is the key to the success of any project. That the people in charge by the end customer and the service company have good communication and means to carry out the agreement is vital.
If the communication is good, the most appropriate resources will be sought to carry out the necessary tasks. If the communication is good, the incidents that arise naturally in any outsourcing process will be easily resolved. And we will also have the facility to generate a good roll in the whole team, which is often mixed of both companies. However if the communication