How to Make Offshore Outsourcing Deals Withstand Crisis Situations

The Satyam fiasco. Economic recession and budget cuts. These 5 tips will help IT departments create effective contingency plans to transfer services back in house or to another service provider when the unexpected happens.

Without taking decisive action, IT executives expose their organizations to increased risk. Government policies, currency exchange rates, vendor performance, or any force that disrupts the status quo—can seriously impact the delivery of contracted services. IT organizations can best prepare now to create competitive advantage and to avoid unnecessary risks.

Critical strategic changes include the following five actions:

1. Diversifying the types of vendors, emphasizing smaller, specialized providers that offer more customized solutions and better executive access

2. Consolidating service providers to a handful of manageable relationships while continuously measuring the effectiveness and efficacy of each contract.

3. Rationalizing service providers rapidly during merger or acquisition rather than letting stale agreements linger, increasing risk and undermining cost reduction goals.

4. Developing transition plans in case a vendor fails to perform according to the contract or otherwise becomes an unattractive partner.

5. Ensuring the integrity of people, both internally and with the service provider, through effective and personalized human capital management.. Read more


naila chowdhury said...

DEAR Bernhard

After a long time I have seen very valuable points which would help small investors like us we intend to support outsource work from any major outsourcers. This will also encourage us to step out of our shelf and offer quality output. It will be an immense pleasure for me and my associates to be professionally linked with someone like you and spread your words to the deserving so that we can overcome our obstacles and produce the best results. thank you.

naila chowdhury said...

Dear Bernhard,

It's been a while but i do want to remind you your articles add lot of value to us in Asia . so keep on writing and sharing them if you get time . Please also feel free to share different topice like Human Resources in Strategic position. I am focusing working in this area last 4 years. i feel if not anything this wil be the leading edge fr every winning organization now and in the coming days.

best regards
naila chowdhury

call centers philippines said...

Interesting post about the tips that will help IT departments to create effective contingency plans to transfer services back in house or to another service provider when the unexpected happens. Thanks for sharing the info. Great blog!