What is outsourcing on the first place? Outsourcing is the contracting out of a business process to a third-party. Outsourcing time to time draws the transmission of employees and resources from one company to another.
How to understand if your company is ready to outsource?
Outsourcing models take work from one business and pass it on to another. It comes into clashes on cultural and political issues in every organization.
However it is not the only issue that can endanger the success of outsourcing. If the process goes on, the heated debates don’t matter. But the hidden concern here that can indeed make the outsourcing effort harder is standardization.
Thus, if your business processes are not assimilated and systematized, if they are different in every country-then people will always consider it too risky to jump in outsourcing relationship. You’ll face opposition all the way eventually.
When you outsource, you’re working through an agreement of a service center and this decreases the effectiveness of changing processes. Your outsourcing partner should tell you this in advance.
So, the first thing you should work with your partner on is standardization. You must be prepared for the fact that when you say “standardization”, many people will switch on the defensive mode. You will start to hear stuff like: “But we are used to do it like this,” or “We can’t do it the otherway”.
Your outsourcing partner should tell you all of it is okay. Being human beings, changes are often accepted. Being institutions, we just don’t like to hear that our collective thinking is being transmitted for something else, and our natural impulse is to warrant why we’ve been doing things a particular way.
Such reactions are widespread and understandable. Anyone cannot deny the importance of ‘captive’ outsourcing models, where processes are fulfilled by a shared services section. The captive model can effectively the trip to outsourcing more calm. This may seem like the longer way, but if it helps to standardize, and control the processes, then it’s a worthy move.
Before you consider outsourcing, keep in mind one thing: people are afraid of moving stuff if they are in the dark about what they are moving, and don’t control it. Spend some time to understand what is on the table, and gather all the information, and you will be ready. You need to have the right partner that would help you to go through this.