There is talk that economic recovery may not come until end-2009 or early 2010, at the earliest.  Even when it does come, it is likely to be slow, modest and remain fragile for some time.  In the meantime, companies need to reassess the business models they developed during the boom times.  Cost bases need to be realigned with lower revenue streams and flexibility needs to be built in to respond quickly to further changes in the market (be they positive or negative).  Offshore outsourcing has a key role to play in supporting businesses to do this.

Using technology more effectively is one way of improving flexibility, cost and performance, but it can only go so far.  People are what make the biggest difference in achieving step-changes in performance.  During these austere times, companies need to look even closer at ways in which they can access the skills and talents they need to survive and grow, whilst minimising costs.  

Offshore outsourcing is an industry that has developed significant expertise over the past few years in combining technological advances with access to highly skilled talent to deliver low cost services.  Companies such as Outspan are at the forefront of developing this expertise and ensuring that the advantages of global sourcing and technology are readily available and cheap for SME businesses to access.  In times like this, this is exactly what many small and medium sized businesses need.
 

So, how do you decide which offshore outsourcing provider is right for your business?

1.     Flexibility – in any new relationship you can never be quite sure how things will turn out, that’s why it is critical to ensure that there is enough flexibility built in to your arrangements so that you can quickly get out of the relationship if things don’t work out as you’d hoped.  A great way of minimising risk is by asking for a trial before you commit to a longer term arrangement.  By running a small scale trial with the provider in a low risk area of your business you can quickly get a feel for whether the relationship will work for you.

2.     Reliability – with a new employee you are likely to take up references before you take employing them permanently.  Testimonials from providers’ existing customers can be useful (as long as they’re genuine!) but often client confidentiality clauses mean that they can be difficult for providers to give.  Again, running a short trial (1-3 months) can be one of the best ways gauge a provider’s reliability and their capabilities. Offshore outsourcing companies that have offices in the UK are likely to be more reliable than pure offshore companies, as the considerable costs of setting up operations in the UK mean they have to ensure high standards of service.  Finally, if a provider is a member of a trusted industry body or institute such as CIMA or ACCA, this provides further assurances that they are either regulated or adhere to certain codes of practice.

3.     Market Knowledge – understanding a client’s business and operating environment is key to ensuring a quality service.  For business process outsourcing (BPO) work, providers should demonstrate solid knowledge of UK statutory standards and commercial practices so that they can deliver the services that UK companies need.  An onshore-offshore provider is a significant asset in this respect, as it can combine local business knowledge with a low cost offshore operating base.

4.     Infrastructure & People – ultimately the service you receive is only as good as the people and infrastructure that deliver that service.  Understanding what facilities a provider has, what back-up and disaster recovery plans they have in place, the experience and qualifications of their staff and their software expertise are all important factors in ensuring a high quality experience.

5.     Personal Relationship – this is the ‘x’ factor in any successful outsourcing initiative.  If the provider is on your wavelength, demonstrates understanding of your business’ needs and communicates effectively, you are much more likely to build a strong and lasting relationship which will reap benefits for your business in the future.