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What are the critical success factors of outsourcing?

The following have found to be the critical factors for a successful outsourcing relationship

  • Ensuring Top Management support of the outsourcing organization
  • Communicating outsourcing objectives to all employees
  • Assigning an outsourcing champion to manage the outsourcing exercise
  • Keeping the lines of communication open between the vendor and the company
  • Clear establishment of the levels of service expected from the vendor
  • Clear definition of the roles that would be played by the vendor and the company
  • Developing and adhering to a comprehensive transition plan

Why do certain outsourcing projects fail?

Certain outsourcing assignments fail due to the following reasons:

  • Lack of managerial support and active interest from the Top Management of the outsourcing organization
  • Lack of clearly defined roles before the commencement of the outsourcing exercise
  • Lack of a comprehensive transition plan
  • Lack of clearly defined service level agreements

Who should an organization outsource to?

Selection of an outsourcing partner should be based on thorough research of the organization’s capabilities and credentials. Key areas to be focused on while selecting a partner are:

  • Domain Expertise
  • Production and support processes
  • Infrastructure
  • People
  • Training Capabilities
  • Client Testimonies

What can an organization outsource?

The list of functions that can be outsourced is long. Among other activities the key functions that can be outsourced are the following:

  • Transaction management
  • e-CRM (electronic Customer Relationship Management)
  • SCM (Supply Chain Management)
  • Back Office Processing
  • Payroll
  • Billing
  • Forms Processing
  • Data Entry
  • Accounting
  • Web solutions
  • Web development
  • Web design
  • Website security
  • Website maintenance
  • Web hosting e-commerce: B2B, B2C and C2B
  • Telemarketing and Call Centers
  • Tele-servicing and Product Support

Why should organizations Outsource?

The key reasons why an organization should outsource are:

  • Reduce and control operating costs
  • Improve host company focus
  • Gain access to world-class capabilities
  • Free internal resources for other purposes
  • A function is time-consuming to manage or is out of control
  • Insufficient resources are available internally
  • Share risks with a partner company

What is Outsourcing?

Outsourcing can be defined as “the strategic use of outside resources to perform activities traditionally handled by internal staff and resources”.

Get In Touch

You may contact us on the following coordinates:

India : +91-20-60601184/85/86

US: +1-646-688-5145

UK: +44-203-371-7595

Email : vital.sales@vitallinkcorp.com