Advantages and disadvantages of Outsourcing work to distant locations

On 17 Dec 2012 by in Category Article

Off shoring the work has been a common practice as it’s been termed fruitful especially in context service quality, pricing and availability. But there are certain challenges attached at the same time, in this blog we would like to explore those points to help in understanding the advantages and disadvantage Outsourcing the work to a distant locations.

Yes specifically talking about distant location here since many of us, would have strong feelings attached to this culture.

 

Before outsourcing a function or a part of your org it’s important for you to understand, what and why is required to be outsourced with some logic and numbers supporting your decisions. This would clear the shadow of uncertainty and help you having a firm decision, now again you need to be true and faithful while performing this analysis, don’t ask someone else to do that for you as you understand your business like no one else.  But at times having a second hand to help would give you a different perceptive to look at things.

 

As human we tend to miss on obvious and thus ignoring the points which could be crucial to the outcome of end result. We are not advocating the third party survey but if doing once in house and outcome didn’t match to expectation making it more oblivious, then please go for one to make an obvious choice.

 

Now you have decided to outsource a particular function or section of your work to someone else please take a note that’s not a sole guarantee of things to become better as day progress. Remember like any other business outsourcing too has both pros and corns attached to it , since you will be now directly or indirectly impacted of those , now please be on your toes to make sure delivery and quality of outcome doesn’t fall .  Now to have it all secured and assured you are required to have agreements , these are called SLA’S ( Service level agreement ) legal bonding on the commitment made by Customer and provider to make sure , thing would be delivered as promised in service catalog.

 

What to look inside a SLA agreement and service catalog, DiceITwise suggest to make sure that conditions and service written are something in relation to nature of your business this is to comprehend better during crisis.

 

-Apart from a strict and well comprehending SLA’s the other key factors which are required to be taken account before outsourcing the work.

-Keep a check on language /communication, make sure it doesn’t act as a barrier to production and communication during in daily work routine.

-Analysis for geographical location, make sure the it is not prone to natural calamities such as earth quake, tsunami, flood, hurricanes etc… to avoid any delay to your production Unit.

-Try to find out how government is encouraging the service providers in their own country, also check for any law of land which could lead to trouble at latter stages.

-Look out for provider past and existing handling capability. How trained and well equipped they are to meet any upcoming future challenges.

-Expectations are required to be set right from the beginning with clear goal definition and instructions to follow under different circumstances.

-Try to compare Cost, Quality and Delivery pattern for your service provider to make sure, job is on right hands.

Please share if you have any advantages and disadvantages to mention….!!