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Selecting an Outsourcing Partner
Aug 13, 2015
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The right people in the right placeTop 5 considerations when selecting an outsourcing partner
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Global Outsourcing MarketAgenda
Criteria of evaluation
Staff Location Security Business Strategy Flexibility
1
2
3 Conclusion
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Global outsourcing market
Increase in global marketAn increase in global outsourcing market value is
reflected in stricter criteria for selecting an
outsourcing partner.
To find one that is attractive, companies have to
focus not only on appropriate prices but also on the
quality of delivered services.
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Global outsourcing market
*Source: TPI; Information Services Group, The Statictics Portal
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140
20
40
60
80
100
120
45.6
52.4
60.164.8
70
76.3 77.180.5
87.591.3 93.1 95
99.1
82.9
104.6
Year
Re
ven
ue
in b
illio
n U
.S.
do
llars
Global market size of outsourced services from 2000 to 2014 (in billion U.S. dollars)*
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Criteria of evaluation
FlexibilityStaff Location Security
Validation of partner is based on 5 overlapping aspects:
Business Strategy
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Staff
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StaffIt’s all about people!
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It’s all about people!
One of the main reasons why companies decide to
outsource is to gain access to world-class capabilities.
Experienced experts handle supporting processes so
that the company can focus primarily on its core
business.
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The main aspects that should be taken into consideration are:
1
2
Appropriately skilled labour forces
Strong business-academic collaboration
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Appropriately skilled labour forces equipped with:
An accurate skill set
Experience working on similar projects
Professional attitude
Unique knowledge
Willingness to undergo continual development
Multilingual and multicultural capabilities
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Location
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Where to outsource?Location
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Where to outsource?
The location of an outsourcing partner can be the
key to successful cooperation.
This involves overall costs as well as satisfactory
communication between all participants.
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The main aspects that should be taken into consideration are:
Time zone alignment Cultural affinity
Language capabilities Infrastructure
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Security
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Is there any risk?
Security
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Is there any risk?
Risk in business is undesirable.
Companies search for partners that will make them
feel safe and whose services will not be threatened by
geopolitical situations.
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The main aspects that should be taken into consideration are:
Financial and economy stability
Geopolitical Risks
Data protection A well-developed
telecommunications network
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Business Strategy
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Business Strategy
Which Service Provider?
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Which Service Provider?
Trust is the foundation of all kinds of relationships,
including business relationships.
To choose a trusted partner is to get to know them
and gain confidence that they are going to help create
your company’s competitive advantage and provide
added value.
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The main aspects that should be taken into consideration are:
Constant improvement References
Standardization and best practices
Culture and maturity of the organization4
21
3
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1. Constant improvement based on:
Creation of innovative solutions
Continual improvement of services
Ground-based portfolio
Keeping up to date with the latest technology
Goals and objectives defined in mission and vision statements
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2. References indicate:
Customer profiles Establishment of trust and
long-term relationships
Constructive feedback and
productive collaboration
Network of recommending
branch partners
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3. Standardization contains:
Implemented international standards such as ISO, ITIL, and IPMA
Best practices and verified solution patterns
Clear and transparent processes
A procedural road map
Stability of business processes
Clearly defined communication channels
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4. The culture and maturity of an organization is composed of:
Focus on provided solution Teamwork and close cooperation
Maturity of management in style and competences
Competitive orientation Win-win approach
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Flexibility
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FlexibilityWill they suit us?
5
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The main aspects that should be taken into consideration are:
Every business is unique, and thus needs tailor-made
solutions and processes.
’Customer first’
Different types of Service Level Agreement
1
2
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1. ‘Customer first’ is expressed by:
Managing close relationships with customers
Ad-hoc reaction for customer’s requests
Proactively and constructively adjusted solutions to provide the real help
Dedicated Single Point of Contact
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2. Different levels of Service Level Agreement as reflected in:
Flexible working arrangements
Tailor-made contract
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In business as well as in life there are many paths to follow.
The key is to know where you want to go and what you want to
achieve.
Quo va dis ho minis?Quo va dis ho minis?
“Would you tell me, please, which way I ought to walk from here?” Alice asked.
“That depends a good deal on where you want to get to,” said the Cat.
Alice’s adventures in Wonderland, Lewis Carroll
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Thank You
This presentation was presented at the
THE ITO/BPO GERMANY FORUM 2015
More information about Hicron:
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