3 Ways to Regain Ownership in an Outsourcing Deal


With an offshore workforce of more than 20 employees delivering 60-70 per cent savings in operational cost, business is doing great. Your service provider has held up their end of the bargain. Of course, it wasn't always easy. Currency fluctuations threatened to take away your savings. Attrition rates sap away output and productivity. You've managed to pull through and build a global force the size of a small company.

Wait, you do have a small company but without the expertise and resources. So how do you regain ownership and take your offshore operation to the next level? Here are three ways to take back control and gear up for global expansion.

Explore hybrid outsourcing models.

Traditional “lift and shift” models are increasingly becoming outdated in today's tech-driven outsourcing industry. Instead of just labour arbitrage, look at more strategic ways to capitalise on offshore outsourcing. You can re-engineer your processes through Cloud-based solutions or establish a regional office through a managed operations service delivery model. You'll be able to retain knowledge because you have control over how output is created and delivered.

Reward the right behaviour. 

Pricing doesn't only drive the behaviour of the service provider but the offshore workers as well. If you're paying based on input, the focus will shift on quantity instead of quality. The service provider will impose a quota on offshore workers to pump high volumes of work to keep you invested. The question is - are the results aligned with your business outcomes?

Pay for results that add to or improve your internal efforts. This will not only help generate business, but also change the perspective of your workers. They’re engaged in tasks that make a difference. They can serve as your global team in an established offshore operation. This way, developed expertise or acquired domain knowledge stays in the company.

Think five years ahead. 

A decade ago, no one thought that the Philippines, which is either known as a call centre hub or sick man of Asia, would be one of the fastest-growing economies in Southeast Asia. Instead of just outsourcing to reduce costs, why not take advantage of the rosy prospects in a new emerging market? You already have the workforce for it. Outsourcing enables you to globally expand your business at lower costs compared to setting up a new company. 

Offshore outsourcing can play an important role in the growth of your business when cost savings are re-invested for growth, not just used for profit. 

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