Outsourcing - Focus on the Fundamentals

Are you considering off shore outsourcing? If so,things. Make sure there is synergy between you
focusing on the fundamentals will save you a fewand the supplier. Strong supplier relationship
headaches and keep your project on track.management is critical to a successful outsource
From computers and car parts, to softwarepartnership.
development and consumer electronics,6. Be sure you know and understand the logistic
outsourcing has become a way of doing business,requirements of the country you are shipping
and it is accelerating at a quick rate. According toproduct. It's always good to identify a good
market research firm Meta Group, offshorelogistics partner to assist with shipping and
outsourcing is expected to grow nearly 20customs.
percent a year through 2008.7. Develop contracts and service level
The fundamentals of any successful outsourcingagreements(SLA) that speak to your specific
project begin with the following:needs and expectations. - Don't be afraid to
1. Assemble a outsource project team.engage your supplier on issues of concern. Being
2. Develop a clear and concise RFP / Statementproactive with possible issues early in the contract
of Work / Design specification.negotiation process will help to eliminate future
3. Due diligence should be used when selectingproblems.
suppliers to send RFP - a little leg upfront work8. Make sure you and your outsource partner
goes a long ways when it comes times to formagreement on an acceptable ramp-up time. This
your short list. Be sure to have non-disclosureswill help if required by the supplier.
signed prior to releasing any proprietary9. Never take anything for granted. Do your
information.homework and you'll okay.
4. Evaluate all proposals for technical competency,The points mention above should cover the basic
thoroughness and understanding of theframe work of your offshore outsourcing project.
requirements.Please realize that every project and situation is
5. Supplier selection criteria should be based ondifferent and will require planning and risk
technical capabilities, IT infrastructure, financialmitigation on your part.
strength, capacity and references among other