Outsourcing done right will help your business reduce costs, improve service levels, and accelerate innovation. The first critical step is to develop or validate your outsourcing strategy. Your outsourcing strategy should support your business strategy and vision. Key aspects you need to consider in developing your outsourcing strategy:
- Customize approaches for each function: Depending on your situation, you may not be able to design a single outsourcing strategy for all functions. You may want to explore ‘best of breed’ approach where you mix and match solution providers to support the needs of different functions.
- Align Operational characteristics: You need to align the outsourcing model with the operational characteristics of the business.
- Make Outsourcing Contracts flexible: Business needs and technology can change rapidly. You need to establish contractual framework that can be adjusted as conditions change to maximize business value.
- Take advantage of technology advances: Recently, advances in digital technologies like Artificial Intelligence, Machine Learning and Data Analytics are having profound influence on outsourcing. Specifically, Robotic Process Automation or RPA mimics human actions through software robots or bots. Bots can take over some of the functions your offshore staff. RPA claims replacement of human workers who perform certain routine functions with digital workers or bots.