Outsourcing is beneficial to companies in many ways.
Companies gain financially, operationally and logistically through various outsourcing activities.
But there are various risks involved in this business model such as…
The third party service provider might not be able to handle the scope of the project.
The personnel may not have the required skill set to execute the job which can have a huge impact on deliverables.
Outsourcing Risks can be mitigated by following these 8 steps…
Discussion of Critical Issues
1.
The contract between the company and service provider must include all relevant critical issues to ensure accurate execution of the service.
Sharing Responsibilities2.
To ensure that neither of the concerned parties are in a position to shed accountability, responsibility must be shared by them for accurate process execution.
Ensuring Business Goals are Achieved
3.
The firm’s business goals must be clearly outlined to the service provider so that necessary steps can be taken to achieve those targets.
Establish Quality Standards and Performance Indicators
4.
KPIs and predetermined quality standard must be agreed upon failing which, an enquiry must be initiated to find the probable cause.
Conduct a Trial of the Services
5.
The client can put the outsourcing company to test and only if they are satisfied with the services, they can finalize the agreement.
Ensure Flexibility and Adaptability
6.
The dynamic nature of business atmosphere must be taken into consideration while drawing up the business agreement with the outsourcing company.
Ensure Confidentiality7.
Confidentiality is the building block of business relationships. A non-disclosure agreement between the client and the service provider is a must.
Ensuring the Right Recruitment
8.
Some companies look for experienced service providers who already have specialized skill set or access to extensive knowledge.
If the service provider works out the smallest of details well in advance and has a strong backup plan, then the outsourcing model will turn out to be a success.
Invensis Technologies offers the best-in-class technology, trained resources and customized processes across various business variables to help your company achieve excellence.
Invensis is an ISO 9001 and 27001 certified company and has served 200+ clients around the world.
To find out more about the services offered and benefits of partnering with Invensis, please contact us at [email protected]
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