7 Non-price Factors to Consider when Choosing Outsourcing Destination
The choice of outsourcing destination is not only a starting point, but also crucial moment in the decision making process of choosing your BPO partner. As this decision will affect the long-term success of your outsourcing partnership we want to point your attention to 7 non-price factors that we advise you to consider in your decision.Why non-price factors?
Cost advantage is no longer the most important benefit in outsourcing partnerships.
Companies consider more valuable the potential for improved performance, better service and innovation offered by the potential outsourcing destination. As you go down the article think of the factors presented as guidelines in your decision making process.
1. Geopolitical Risk
Consider whether a change on the political arena like new government would result in business disruption. Look at how the functioning government is perceived on national and global level, does it support the outsourcing industry in terms of investment, does the government participate in industry bodies or associations.
2. Time Zone
Big time zone difference could be a minus for a prospective outsourcing destination. Consider the possibility of delays in communication and frustration in terms of work synchronization between you and your outsourcing partner.
3. Quality of Resources
The quality of the talent pool directly affects your success. Consider whether the talent pool is qualified to meet the requirements of your outsourcing initiative. Know the percentage of the workforce that is specifically trained and certified to meet your requirements and the attrition rates in similar projects. Also, keep in mind availability of sustainable labor supply that can meet your growing staffing business requirements.
4. Cultural Compatibility
Language barriers, differences in values and culture, rare face to face communication are factors that might affect your outsourcing partnership. Therefore, make sure that you are on the same page with your outsourcer in terms of expectations of the business relationship. Also, examine whether your customers or employees are sensitive to being served or working with that particular country.
5. Technology Infrastructure
Consider technology infrastructure in terms of connectivity, availability, quality and security including back-up infrastructure and business continuity solutions. Business continuity in the case of unexpected equipment failures is crucial for preventing major business disruptions. Therefore, reliability of the technology infrastructure is major point of consideration.
6. Legal Considerations
Legal protections and laws greatly vary from country to country. Therefore, educate yourself on the enforcement of legal protections specific for your outsourcing initiative. Compliance with regulations concerning the preservation of client confidentiality and sensitive information is crucial factor to consider.
7. Outsourcing Experience
Even if you are already familiar with the reputation of your potential outsourcing destination consider doing some more research. In order to get real and adequate evaluation of the potential and professionalism of the outsourcing destination consider reading some testimonials of clients (similar companies to yours) that share work experience in this outsourcing location.
Put it All Together
The methodology for evaluating those non-price factors will vary depending on the needs of your business and specifications of your project. Addressing those factors in comparison to other possible outsourcing destinations will easily make one of your choices stand out thus facilitating your decision making process.