Ever heard of a television serial named ‘Outsourced’? If not, let’s get you familiar with the show. Basically, the show is about an American person opening a call centre in India. But what is outsourcing? Why did the American guy come to India? What were the benefits of having a synergy? And the crucial question is, was the engagement successful? Let’s answer everything that one needs to know about a successful outsourcing partnership.
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What is an outsourcing partnership?
Outsourcing is a form of business trade where a company hires another company to execute certain tasks and carry out specific operations. The service benefactor is known as a ‘third-party’. Both companies together work in a partnership mode. Let us take an example of an American business that manufactures mobile phones. It alone cannot handle all the functionalities of the business. Thus, it will hire a company that offers mobile app development in the USA to take the charge of development, another company to manufacture spare parts, and one to handle market operations. This process is fundamentally called offshoring.
There’s a famous quote by Mother Teresa that says, “I can do things you cannot, you can do things I cannot; together we can do great things”. This is the basic concept of an alliance. A company collaborates with another company to enhance its outcomes and reap benefits. But pay attention to the fact that it is a partnership and not a purchase. A successful alliance takes into consideration manifold aspects, not just dispensing the work. Let’s unfold these aspects to apprehend the concept of an affluent union by simply answering these two questions:
- Why establish an outsourcing partnership?
- How to establish a fruitful confederation?
Why establish an outsourcing partnership?
Let us suppose a company plans to create an android application for its business. But the manpower and the resource in its native nation is costly. However, there’s a company that provides mobile app development in the USA at a cheaper price. Ergo, the business shall outsource the service to that firm to save cost and increase efficiency.
Like this example, there are many rationales for farming out your business needs. Some of them are mentioned below:
- Cost saving– The most apparent reason for outsourcing is cost. Instead of hiring new employees or producing new technology from scratch, a business can simply outsource its work to an already established enterprise. This will economize on the workforce, resources as well as operations.
- Time-saving– The next obvious reason for having a successful coalition is to save time. When instead of a department, there is a whole dedicated company to execute the operations, the outcome is generated expeditiously. Coalition helps to manage time better without hindering the superiority of the tasks.
- Better efficiency– A prosperous union brings productivity to its best. The firm to which tasks are outsourced provides expertise in specific fields that enhance the productivity of the task resulting in better efficiency. The time, capital, and strategies are integrated into a single entity, which brings in greater competence.
- Budgeting infrastructure and resources– Outsourcing a business helps a business to save the outlay on infrastructure. The third-party is well equipped with the necessities of the tasks which consequently saves the hard cash for the business.
- Focused business operations– When all the minds are put into one task, the result is top-notch. An additional reason why dispensing the work is ideal for any business is that the third-party proffers focused access to innovation. A business gets finer talent and technology that is one step ahead of it. This garnered improved proficiency in operations.
How to establish a fruitful confederation?
Now the question comes, how to create a lucrative and successful partnership? A business cannot simply hand over its task, operations, and responsibilities without considering the rudiments. To put money into the future of business, the partnership between the two companies should be strong. Below are some of the many aspects to consider for achieving great synergy.
- Alike philosophy– The ideology and beliefs between two businesses should be alike to have a successful outsourcing collaboration. A business offering mobile app development in USA and a business offering cocoa production in Ghana cannot have a similar philosophy. A similar outlook smoothens the journey of subcontracting.
- Having trust– A business ought to trust the other establishment with the procedure and outcomes. Micro-managing a company does not reflect trust. Different businesses have different approaches. Having trust in the other company is pivotal for a healthy association.
- Interactive communication– Open communication between the two companies is the bridge that leads to success. A business should be open, direct, and articulated regarding its requirements. And vice-versa, the other company should be honest and transparent about its procedures and outcomes.
- Flexibility– Ever played the game of Pictionary? A player draws a picture and other players guess it. Even though the person knows exactly what to draw, seldom times it turns out to be slightly different. Similarly, a business should not expect the third party to be 100% accurate with the result. Having a flexible approach will help to maintain a robust relationship among the companies.
We have reckoned all the rudiments, features, and empirical reasons for a successful offshoring partnership. Creating an alliance is one mission but maintaining a healthy partnership is on another level of purposefulness. A business ought to think practically and prefer an outsourcing partnership that not only fulfills its requirements but also provides maximum gain. Even though the path to a successful partnership is not easy, nonetheless, it is profusely beneficial.
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