Outsourced Process and Control

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A lot of work gets outsourced in order to operate leaner and still be able to complete task in time for outsourced process.  Everything from HR, Administration, Accounts, Manufacturing, Shipping, Payroll and so on can be outsourced.

Recent trends have made it hard for people in so many terms to not come out as winners. You do what you are good at and rest of it outsource. Seemingly it is the most efficient way of doing things. But there is a glitch. Once process is outsourced it still remains your responsibility to make sure that results are delivered. Out sourced does not translate that it will be somebody else’s responsibility altogether.

Once a good repertoire is established every relationship becomes more comfortable and error proofing does not happen. Open source service management software in business sense this can be very expensive. Once some process is outsourced there should not be feeling of lost control and no way to monitor process. It is imperative that some action plan or checklist is identified to either mistake proof this process or help as a precursor to change.

Steps which can be taken to reduce the issues associated with outsourcing are as follows:

  1. Identifying how much control you need to have for a particular outsourced process.
  2. Have monthly meetings to get reports.
  3. Discuss issues and take corrective actions to prevent similar issues arising again.
  4. Evaluate the service provider and provide feedbacks.
  5. Have a contractual agreement in place and outline each clause to protect both parties interest.

A supplier risk assessment is not a bad idea either. If you have outsourced that process which is critical to quality (CTQ) of the product or service you provide than risk assessment needs to be done and a contingency plan needs to be available. These factors weigh in more when companies go out for bigger contracts with vendors on global platform. What would you do if your sole supplier is gone?

Outsourcing has its benefits and is a great asset to companies who like to operate lean and leverage the help of Subject Matter Experts (SME’s). But with little caution and some in built checks these outsourced processes can be controlled before issues arise.

So if you are out there looking to outsource any process ask these critical questions and your business success will speak volumes on it.

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One comment

  • Gabrielle

    February 15, 2012 at 7:12 pm

    Way to go on this essay, helped a ton.

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