Managing Performance / Setting Goals

How Small Businesses Can Manage Offshore Outsourcing

Mani Malarvannan asked:

BPO can help small business in reducing the cost thus increases the productivity and efficiency by which small business can expand their core business. By outsourcing their business processes, the company is free to concentrate on its area of expertise and leave processes such as accounting, book keeping and auditing to the professionals. But at the end the success of any offshore business process depends on the management of the project as good project management ensures that there are clearly defined goals, processes and final expected outcomes from the project. It is about managing time and human resources in an effective manner

Different Management Guidelines for Offshore Outsourcing

You should clear your expectation to the vendors to have a smooth start. Don’t hesitate to ask for credentials and backgrounds of projects done in the past this is a crucial step to right direction.

Proper eye to look into the detail

The contract should contain from minor to major details. Do check and remember all the points and situation before you sign the contract. At this point you would also need to research the legal standing of such a contract in the country of the service provider.

Proper Resources

There is a limit for offshore vendors to take workload. You should give burden to the vendors. Here qualification of the employees working on the project must be know. . For example in accounting it is necessary to have certified public accountants work on your project and also they must understand the accounting requirements in your country and deliver accordingly.

Effective Communication

You should look for long term business relationship with the outsourcing company and should motivate them always to feel them like partners. This create a healthy atmosphere to work together

There should be a Core Management Team

A small management team needs to be selected within the small business and this team will constantly evaluate the performance of the outsourced team

Proper Communication must be done with the Offshore vendors

Some employee must be sent to the Offshore company to superintendent the work done and explain the critical stage of the project. Thus the vendors get a proper idea of the project and this gives a great impact on the service providers

A Standardized Processes should be maintain

A process should be created so that any changes can be made in near future. . This would ensure clarity in any changes in the projects and avoid confusion.

Costs and Expenditure is the prime factor

you should clear the cost for the project from the vendors before the start of the project. The cost may increase for costs from unexpected factors and situation such as travel expenses and training.

You need to budget the cost accordingly.

Cultural issues must be managed properly

Cultural difference occur often as the outsource company is in different country. So it should be managed with proper care and intelligence so that both teams can work well for one common goal of completing the project.

Milestones and Deadline should be fixed

Proper time and milestone should be fixed before the start of the project. This is important part of project management. In offshore project management it is more important. Milestones and timelines for your project gives proper accountability from the offshore team and any issues can be resolved in the early stage of the project itself.

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