The terms "outsourcing" and "offshoring" are often used interchangeably. However, there is are significant differences, in terms of organisational and customer buy-in, and the risks will be different, depending on the type of work that moves from your in-house control.
Outsourcing all of part of a service to a third party does not necessarily mean that the product is outsourced abroad, although it can be.
However, when a company offshores, it shifts the location of a service to a location abroad. This can include outsourcing to a foreign company.
Develop Life people have a wide range of experience in the procurement of outsourcing partners - both at home and abroad - and the implementation and operational support of these operation, to ensure quality is maintained, the commercial proposition is realised and the customer experience is not compromised.
Cultural differences are often considered to be the biggest barriers to successful outsourcing or offshoring. Often, companies look for the low-risk approach, which generally manifests in giving high volume but low complex work to the service partner. Huge frameworks and controls are put in place, meaning that the outsourcing partner has no freedom to make even the smallest decision on behalf of the client.
The impact - poor motivation in the service partner's workforce, high turnover and low knowledge retention. From the customers' perspective, they find themselves dealing with people who want to help but are totally frustrated by process.
The result of this is "bad work" - work needing to revert back to in-house "experts", which often negates the cost savings that were expected.
It doesn't have to be like this. There are success stories of companies that have successfully outsourced and offshored. They've ensured success by adopting a true partnership approach with their service provider, allowing them to become the experts and giving them a degree of decision-making that allows their people to feel they deliver value to your customers.
Develop Life people have a wealth of experience working in the outsourcing/offshoring sector. Our consultants have commissioned and delivered outsourcing projects for major Brands, and worked in-house, and directly for the outsource service partner to support a robust transition and quick stabilisation of services In doing this, we can: