Outsourcing

Computers & TechnologySearch Engine Optimization

  • Author Chronis Tsempelis
  • Published January 17, 2010
  • Word count 1,932

Cultural differences in outsourcing

Outsourcing used to be something that only larger companies did. A call center or software development center for Dell or IBM was considered the norm, Today mid-sized companies are taking advantage of outsourcing. By being selective on what they outsource and to what partner they select these smaller companies are expanding into the outsource world.

Successfully outsourcing is not as simple as negotiating a contract and letting the service run. The success of an outsourcing project is highly dependent on the relationship developed between the the company outsourcing and their partner.

A recent report I read stated that over 65% of outsourcing relationships fail partially or totally. the primary reason these deals fail is due to a lack of understanding between the outsourcing company and they partner, as well as poor management.

The cultural differences that cause these relationships to fail are not simply because "they" are different than "us". Each company has its own culture and these company cultural ideas and beliefs have to be taught to the partners just like they are taught to new employees. And just like with new employees these values have to be continually reinforced.

If you have a company that believes working 9 to 5 is enough you will have one type expectation of your partners. If your company believes that working on a problem until it is resolved regardless of the hours, then you have to make sure that your partner will accept to work in the same manner.

When Culture Collide

To make sure that work culture don't collide (or collide with a smaller impact) there are several steps that you can take.

First, do a formal Request For Proposal (RFP) for any service that you are outsourcing. In addition to defining the services that you want supplied, include a detailed section on the reporting details that you require. Some cultures want to avoid confrontation and place a high vlue on "saving face:. Make sure that the reporting you receive will include reference to the results from clients that were not satisfied with the service that they received.

Second, in the RFP, include a section that describes your company culture and your values. An outsource partner must adapt to your values because the client who speaks to your partner will only associate good or bad results with your company - not the partner. To a client, a partner does not exist, the client is dealing with your company.

Third, when you have a shortlist of potential partners, go to their site. You need to get a real feeling for the company and how they operate. If you are considering 3 potential partners in India a service, send at least on person to India for at least 2 weeks so one employee can spend at least 3 days on each site to get a real feel for how the partner does business.

Interview employees from the partner sites.

Finally, consider bringing the potential managers of the service that you are outsourcing to one of your team building exercises. There is probably no better way for these manager to see your company culture than to share a team building exercise with you.

Mind The Gap

Cultural gaps exist.

To lessen the impact of the culture gaps, make sure your contract clearly states that changes in service managers require hiring company approval. Having completed the vetting process will serve no purpose if the people you hire change the key personnel. Important changes could be equivalent to never having done the prior steps.

If you are outsourcing a service to your own country, assign an experienced employee from your company as a site Account Manager (AM). this AM would be in site during normal working hours and report only to the hiring company.

If you are outsourcing to distant shores, have the AM present full time if possible. If you can't, or choose to not, do this have your AM on site for at least one full week each quarter.

Only with a person from the hiring company present on site can yo have a real understanding of your partner and how they do YOUR business.

Meet Client Expectations

In all cases your partner must supply ongoing training related to the products and services they are supplying and supporting. If the partner is in a country where they don't speak the same language as your client, language courses are also a requirement. If the language level is sufficient, language courses may still benefit to work on accents.

Every service provider must have a clear understanding of your client expectations.

Realistic expectations must be defined in the original RFP and measured against the Service Level Agreements (SLA). An SLA can include any form of measurement that you decide is required. This can include the maximum time a client can be on hold, the maximum time to complete a call or service, the maximum level of clients that define themselves as dissatisfied with the level of service that they received. This last is often recorded by asking the client to complete a survey after the service has been delivered.

This is just a beginning on how to overcome some of the cultural differences in the outsourcing process.

Benefits of a Virtual Assistant

Discover the benefits of hiring your own virtual assistant / personal assistant. This modern way of delegating tasks is rapidly growing!

A Virtual Assistant (VA) is an independent contractor who provides administrative, technical, and other business specialized services. Many Virtual Assistants were Administrative Assistants in the conventional workplace before beginning their own Virtual Assistance ventures. Most Virtual Assistants work from their home office and use the Internet, phone, fax, email, mail, and other technology to communicate with their clients quickly and easily.

Virtual Assistants provide many of the same services as onsite employees, without the added costs. Here are some of the tasks you might expect to delegate to a Virtual Assistant:

· Personal Assistance

· Website Maintenance and Updates

· Customer Service

· Answering Service

· Link Exchange

· Article Management

· Online Advertising

· Data Entry

· Accounting and Bookkeeping

· PowerPoint Presentations

· Database Management

· Word Processing

· Technical Support

· Transcription

· Travel Arrangements

· Reminder Service

· Writing, Editing, and Research Services

Below you will find just a few of the many benefits of hiring a Virtual Assistant over a conventional or temporary employee:

Cost of Work Space and Equipment

Virtual Assistants work from their own home or office and use their own equipment. You don't have to pay for office space, equipment, maintenance, or addition utility bills. This is especially beneficial if you don't have a lot of space of your own.

Cost of Taxes and Benefits

Since Virtual Assistants are independent contractors you don't have to spend time or money dealing with taxes. Another benefit is you don't have to pay health/life insurance or workers compensation. In addition, you don't have to pay holidays, vacation time, or sick leave.

You're In Charge

The relationship between you and your VA is based on a contracted agreement and you state the terms. You have the added benefit of paying by the project, by the hour, or on a monthly retainer. Since they bill for work completed you don't have to pay for personal phone calls, tardiness, child issues, or sick leave. You choose which tasks to delegate to the VA and which tasks to do yourself or to keep in-house.

Professional Ideas

A Virtual Assistant is an entrepreneur that has their own strengths, background, and areas of expertise. They work from home and provide a service just like you do and have their own ways to market and solve problems that you might never have thought of. Having an experienced business person to bounce ideas off of will help you and your business grow.

Time to Focus on Your Business

Hiring a Virtual Assistant will free up your valuable time to focus on improving your business. Delegating administrative work such as bookkeeping, writing, research, customer service, and other jobs will allow more time for you to expand your business.

Conclusion

Hiring a Virtual Assistant is not only cost efficient for you and your business, it is also time efficient. Outsource your administrative tasks today and focus on expanding your business and building relationships

Top 7 Outsourcing Advantages

Outsourcing Advantages: A Back-Office Operations Illustration

  1. Focus On Core Activities

In rapid growth periods, the back-office operations of a company will expand also. This expansion may start to consume resources (human and financial) at the expense of the core activities that have made your company successful. Outsourcing those activities will allow refocusing on those business activities that are important without sacrificing quality or service in the back-office.

Example: A company lands a large contract that will significantly increase the volume of purchasing in a very short period of time; Outsource purchasing.

  1. Cost And Efficiency Savings

Back-office functions that are complicated in nature, but the size of your company is preventing you from performing it at a consistent and reasonable cost, is another advantage of outsourcing.

Example: A small doctor's office that wants to accept a variety of insurance plans. One part-time person could not keep up with all the different providers and rules. Outsource to a firm specializing in medical billing.

  1. Reduced Overhead

Overhead costs of performing a particular back-office function are extremely high. Consider outsourcing those functions which can be moved easily.

Example: Growth has resulted in an increased need for office space. The current location is very expensive and there is no room to expand. Outsource some simple operations in order to reduce the need for office space. For example, outbound telemarketing or data entry.

  1. Operational Control

Operations whose costs are running out of control must be considered for outsourcing. Departments that may have evolved over time into uncontrolled and poorly managed areas are prime motivators for outsourcing. In addition, an outsourcing company can bring better management skills to your company than what would otherwise be available.

Example: An information technology department that has too many projects, not enough people and a budget that far exceeds their contribution to the organization. A contracted outsourcing agreement will force management to prioritize their requests and bring control back to that area.

  1. Staffing Flexibility

Outsourcing will allow operations that have seasonal or cyclical demands to bring in additional resources when you need them and release them when you're done.

Example: An accounting department that is short-handed during tax season and auditing periods. Outsourcing these functions can provide the additional resources for a fixed period of time at a consistent cost.

  1. Continuity & Risk Management

Periods of high employee turnover will add uncertainty and inconsistency to the operations. Outsourcing will provided a level of continuity to the company while reducing the risk that a substandard level of operation would bring to the company.

Example: The human resource manager is on an extended medical leave and the two administrative assistants leave for new jobs in a very short period of time. Outsourcing the human resource function would reduce the risk and allow the company to keep operating.

  1. Develop Internal Staff

A large project needs to be undertaken that requires skills that your staff does not possess. On-site outsourcing of the project will bring people with the skills you need into your company. Your people can work alongside of them to acquire the new skill set.

Example: A company needs to embark on a replacement/upgrade project on a variety of custom built equipment. Your engineers do not have the skills required to design new and upgraded equipment. Outsourcing this project and requiring the outsourced engineers to work on-site will allow your engineers to acquire a new skill set.

MarketRaise is a IT consulting company located in NY. We provide one of the lowest prices in the U.S. with rates as low as $12.00 an hour for all services such as Outsourcing, Consulting, Staffing, IT Services, SEO, Web design, Software Development.

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