the right way to outsource

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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

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Presented at InnoTech Oklahoma 2013. All rights reserved.

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Page 1: The Right Way to Outsource

THE RIGHT WAY TO OUTSOURCE

ELEVATE YOUR OUTSOURCING FROM A COST TO AN OPPORTUNITY

ALLSHORE GLOBAL RESOURCES LLC. WWW.ALLSHORE.US

Page 2: The Right Way to Outsource

Outsourcing: Contracting a business process or task out to a third party provider

Simple, right?

ALLSHORE GLOBAL RESOURCES LLC. WWW.ALLSHORE.US

Page 3: The Right Way to Outsource

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

Page 4: The Right Way to Outsource

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

Page 5: The Right Way to Outsource

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

Page 6: The Right Way to Outsource

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

Page 7: The Right Way to Outsource

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

Page 8: The Right Way to Outsource

ALLSHORE GLOBAL RESOURCES LLC. WWW.ALLSHORE.US

CHOOSING YOUR OUTSOURCING PROVIDER

Offshor

e

Nearsho

re

Enterprise Partnership

Virtual Staffing

Onshore

Turn-Key

Page 9: The Right Way to Outsource

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:

Page 10: The Right Way to Outsource

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

Page 11: The Right Way to Outsource

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)

Page 12: The Right Way to Outsource

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

Page 13: The Right Way to Outsource

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

Page 14: The Right Way to Outsource

ALLSHORE GLOBAL RESOURCES LLC. WWW.ALLSHORE.US

www.philwebsupport.com

Page 15: The Right Way to Outsource

MAKING IT WORK

Communication

Planning

Page 16: The Right Way to Outsource

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

Page 17: The Right Way to Outsource

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

Page 18: The Right Way to Outsource

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

Page 19: The Right Way to Outsource

ANY QUESTIONS?

ALLSHORE GLOBAL RESOURCES LLC. WWW.ALLSHORE.US