Outsourcing – Focus on the Fundamentals

Are you considering offshore outsourcing? If so, focusing on the fundamentals will save you a few headaches and keep your project on track.

From computers and car parts, to software development and consumer electronics, outsourcing has become a way of doing business, and it is accelerating at a quick rate. According to market research firm Meta Group, offshore outsourcing is expected to grow nearly 20 percent a year through 2008.

The fundamentals of any successful outsourcing project begin with the following:

1. Assemble a outsource project team.
2. Develop a clear and concise RFP / Statement of Work / Design specification.
3. Due diligence should be used when selecting suppliers to send RFP – a little leg upfront work goes a long ways when it comes times to form your short list. Be sure to have non-disclosures signed prior to releasing any proprietary information.
4. Evaluate all proposals for technical competency, thoroughness and understanding of the requirements.
5. Supplier selection should be based on technical capabilities, IT infrastructure, financial strength, and references. Make sure there is synergy between you and the supplier. Strong supplier relationship management will be critical.
6. Develop contracts and service level agreements that speak to your needs and expectations. – Don’t be afraid to engage your supplier on issues of concern.
7. Skillful project management will be the key to a successful outcome.

The points mention above should cover the basic frame work of your offshore outsourcing project. Please realize that every project and situation is different and will require planning and risk mitigation on your part.

If your company is about to undertake such a project or just want consultation, give Cetera North America a call or visit us at http://www.teamcetera.com/.

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