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Presented at InnoTech Oklahoma 2013. All rights reserved.
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THE RIGHT WAY TO OUTSOURCE
ELEVATE YOUR OUTSOURCING FROM A COST TO AN OPPORTUNITY
ALLSHORE GLOBAL RESOURCES LLC. WWW.ALLSHORE.US
Outsourcing: Contracting a business process or task out to a third party provider
Simple, right?
ALLSHORE GLOBAL RESOURCES LLC. WWW.ALLSHORE.US
WHERE IT ALL GOES WRONG
•Breakdowns in communication
• A lack of flexibility and adaptability
•Unclear expectations
• Poor planning
•Underutilization
ALLSHORE GLOBAL RESOURCES LLC. WWW.ALLSHORE.US
THE “NEW” OUTSOURCING
• You have options!
• Long-term solutions and strategic partnerships
• Consumer-focused tailored solutions
• Smaller, more flexible deals
Outsourcing is becoming a more attractive option for mid-market and small businesses, and offers a lot more value as a long-term solution ALLSHORE GLOBAL RESOURCES LLC. WWW.ALLSHORE.US
KEYS TO A SUCCESSFUL OUTSOURCING VENTURE
• A thorough understanding of your company, team, and product
• The ability to communicate these things clearly to your team and your outsourcing provider
• Strategic Planning
• A strategic understanding of outsourcing and the willingness to succeed
ALLSHORE GLOBAL RESOURCES LLC. WWW.ALLSHORE.US
BEFORE YOU OUTSOURCE•What do you hope to gain from your outsourcing
experience? To be successful, you must first have a clear understanding of what success will look like
•Communicate with your team and your company
•How will outsourcing fit into your company?
•Risk Management
•Carefully consider what you outsource
•Be sure you have the resources in-houseALLSHORE GLOBAL RESOURCES LLC. WWW.ALLSHORE.US
CHOOSING YOUR OUTSOURCING PROVIDER
•What kind of outsourcing is right for you and your company?• Know your limitations
ALLSHORE GLOBAL RESOURCES LLC. WWW.ALLSHORE.US
ALLSHORE GLOBAL RESOURCES LLC. WWW.ALLSHORE.US
CHOOSING YOUR OUTSOURCING PROVIDER
Offshor
e
Nearsho
re
Enterprise Partnership
Virtual Staffing
Onshore
Turn-Key
WITH SO MANY OUTSOURCING OPTIONS, WHICH ONE IS RIGHT FOR ME?
•Risk
•Control
• Involvement
•Cost
• Proximity
•Complexity
• Longevity (What kind of work are you outsourcing?)
ALLSHORE GLOBAL RESOURCES LLC. WWW.ALLSHORE.US
Factors to Consider:
OUTSOURCING SOLUTIONS
• Higher client involvement – higher control
• Client manages own project
• Long-term solution
• Hourly
• Direct and dedicated
• Transparency
ALLSHORE GLOBAL RESOURCES LLC. WWW.ALLSHORE.US
Turn-Key Virtual Staffing
• Minimal client involvement – minimal control
• Project manager provided
• Short-term
• Bidding
• Indirect communication
OUTSOURCING SOLUTIONS
ALLSHORE GLOBAL RESOURCES LLC. WWW.ALLSHORE.US
Multisourcing Nearshoring Outsourcing through multiple vendors, usually in combination with some internally executed elements
• Maximizes effectiveness • Risk management • Promotes competition between
providers
• Increases complexity and risk of misalignment
Outsourcing to a nearby country. Typically to one that shares a boarder.
• Proximity • Temporal alignment
(primary)• Cultural/language
alignment
• Increases cost (sometimes without sufficient payoff)
CHOOSING YOUR OUTSOURCING PROVIDER
•What kind of outsourcing is right for you and your company?• Know your limitations
• Aligned with your business
• Solid incident, problem, and change management • Ask the what-if questions
• Customer Service structure
• Flexibility
• Security
• Location
ALLSHORE GLOBAL RESOURCES LLC. WWW.ALLSHORE.US
LOCATION
•Offshoring and Nearshoring
• Are there markets into which you hope to break?
• Market-intelligence advantage
•Do your research - Know what to expect
•Holidays and time off
•Do not let geopolitical bias affect your decision
• Ask the hard questions
•Do not stop paying attention ALLSHORE GLOBAL RESOURCES LLC. WWW.ALLSHORE.US
ALLSHORE GLOBAL RESOURCES LLC. WWW.ALLSHORE.US
www.philwebsupport.com
MAKING IT WORK
Communication
Planning
MAKING IT WORK
•Make sure everyone is on the same page
• In your own office
• With your vendor
•Communicate your expectations from the start
•Develop processes in conjunction with your provider
• Treat your overseas developer like a member of your team
• Make them a member of your team
•Do not underutilize your developers (“Value Leakage”)ALLSHORE GLOBAL RESOURCES LLC.
WWW.ALLSHORE.US
COMMUNICATE WITH YOUR TEAMS
IN-HOUSE
•Make your goals and intentions clear to your company
• Get everyone on board
•Be sure everyone knows what their role is
• Include your team in the creation of processes, especially if they have to execute
ALLSHORE GLOBAL RESOURCES LLC. WWW.ALLSHORE.US
COMMUNICATE WITH YOUR TEAMS
OUTSOURCED
•Make your expectations clear from the start
•Develop processes in conjunction with your overseas team
• Treat your outsourced developers like members of your team
• Make your outsourced developers a member of you team
•Do not under utilize the talent available to you ALLSHORE GLOBAL RESOURCES LLC. WWW.ALLSHORE.US
ANY QUESTIONS?
ALLSHORE GLOBAL RESOURCES LLC. WWW.ALLSHORE.US