Offshore outsourcing has become an indispensable part of the business strategy. It is an effective mechanism that helps to reduce costs and acquire better quality of work. This is because there are plenty of offshore service providers who offer their services at a fraction of the cost it would take for the task to be completed in-house. Also, since they are experienced professionals, you can be assured of high quality services.
However, if you need to make more savings on your offshore outsourcing deals, follow these effective strategies:
Define a Clear Objective for the Project
Before you start your project, it is important to do a complete a thorough assessment of all its aspects. You need to determine the key goals and objectives for the project. Unless you know what you want to achieve from the project, how can you actually work towards to achieving it? Talk to your customers about their needs and requirements and convey the same to your service provider. This can save you an enormous amount of research therefore cost your less money as well.
Outsource to Multiple Vendors
Instead of hiring a single vendor for your tasks, consider hiring multiple service providers. This will get you a competitive leverage that your further reduce your overall costs. Moreover, because of the multi-sourcing you will have better risk mitigation and also access to a greater talent pool. This would also give you a chance to gauge and understand the working of a bunch of service provider from which you can choose one when you need help with complex tasks in future.
Connect your Service Lines
One of the best things you can do is to include certain provisions in the contract that allow reinvention of savings in between the service lines i.e. the savings made on one service line can be diverted and employed to another service line. This will motivate the outsourcing service provider to free the additional resources and get more work instead.
Opt for Cost Reducing Pricing Mechanism
Many service providers have a flat rate for the first year of outsourcing partnership which they reduce if the project is extended for more number of years. So, if you have a long term outsourcing strategy in mind, consider outsourcing to such firms. This will tremendously reduce your costs in the future.
Consider New Delivery Methods
Offshore outsourcing industry is booming and so are its various verticals. This enable you to consider new and more cost effective options like SaaS (Software as a Service), virtual assistance, cloud computing, infrastructure on demand and so on. They are multi-tenancy and pay-per modules that can make a huge impact on your expenditure figures and cut overall costs significantly.
Be Diligent
One of the most important features in outsourcing negotiations is diligence. However, take care not to over-do it and lose the very essence of the contract. While pressure may serve to bring out the best, too much pressure can sometimes de-motivate the service providers which can influence negatively in the results.
However, if you need to make more savings on your offshore outsourcing deals, follow these effective strategies:
Define a Clear Objective for the Project
Before you start your project, it is important to do a complete a thorough assessment of all its aspects. You need to determine the key goals and objectives for the project. Unless you know what you want to achieve from the project, how can you actually work towards to achieving it? Talk to your customers about their needs and requirements and convey the same to your service provider. This can save you an enormous amount of research therefore cost your less money as well.
Outsource to Multiple Vendors
Instead of hiring a single vendor for your tasks, consider hiring multiple service providers. This will get you a competitive leverage that your further reduce your overall costs. Moreover, because of the multi-sourcing you will have better risk mitigation and also access to a greater talent pool. This would also give you a chance to gauge and understand the working of a bunch of service provider from which you can choose one when you need help with complex tasks in future.
Connect your Service Lines
One of the best things you can do is to include certain provisions in the contract that allow reinvention of savings in between the service lines i.e. the savings made on one service line can be diverted and employed to another service line. This will motivate the outsourcing service provider to free the additional resources and get more work instead.
Opt for Cost Reducing Pricing Mechanism
Many service providers have a flat rate for the first year of outsourcing partnership which they reduce if the project is extended for more number of years. So, if you have a long term outsourcing strategy in mind, consider outsourcing to such firms. This will tremendously reduce your costs in the future.
Consider New Delivery Methods
Offshore outsourcing industry is booming and so are its various verticals. This enable you to consider new and more cost effective options like SaaS (Software as a Service), virtual assistance, cloud computing, infrastructure on demand and so on. They are multi-tenancy and pay-per modules that can make a huge impact on your expenditure figures and cut overall costs significantly.
Be Diligent
One of the most important features in outsourcing negotiations is diligence. However, take care not to over-do it and lose the very essence of the contract. While pressure may serve to bring out the best, too much pressure can sometimes de-motivate the service providers which can influence negatively in the results.
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