Benchmarking is about objective evaluation of processes to measure the gap between industry best practice and current performance. When a company goes outsourcing way it wants lot of queries and doubts to be solved in regard to timeline, process, structuring the deal, dealing with the local union and above all a successful integration with the offshore center. A focused approach to defect free process can reduce costs and increase profit without compromising on quality parameters.
On a micro level it requires project requirements to be defined clearly by the IT managers and how they are equipped to measure and review critical elements on process improvements.
For all the parties involved with the chain identification of the process, definition of defect and corresponding measurements can make it happen without going through a excruciating process of trial and error.
A global study by consulting firm Accenture highlights a genuine (without prejudice I mean) guide here for high performance success to attain max business results.
An executive participant says,
Companies realize that outsourcing is a fairly powerful and
effective management tool; it’s not just a fad, but part of their business model, which really requires a nuanced approach to setting up and managing those deals and making them work.
Seven Best Practices from the Masters
1. Build in Broad Business Outcomes Early and Often: Incorporate business outcomes as a performance measure from the outset of the arrangement.
2. Hire a Partner, Not Just a Provider: Look for an outsourcing provider that brings a wide set of skills and strengths, and a long-term track record of delivering results, in addition to competitive pricing.
3. It’s More Than a Contract, it’s a Business Relationship:
4. Leverage Gain-Sharing:
5. Use Active Governance:
6. Assign a Dedicated Executive:
7. Focus Relentlessly on Primary Objectives:
Personally I will like to add some points here as I firmly believe that delivery of a critical technology services (which is so strongly local culture wise) are all about oldest school of business model, relationship. And people should strategically take care so that these relationships don’t get broken on the premise of rumors and lack of communication.
1. Clear Objectives: Positive outlook, value addition
2. Board level assurance: Internal detractors gone
3. Dealing with workforce: The bright picture
4. Benchmark your requirement: No confusion arises
5. Be clear of your requirement:
6. Set outputs
7. Involve the end users: User groups key
8. Affordability: Overboard? No way
9. Detailed on the contract
10. The right team:
