Maximize Returns On Outsourcing Budget – 2018: Edition #2

In our previous edition of this topic, we’ve discussed how organizations rely on outsourcing as a means of cutting costs. We’ve also seen how businesses adopt outsourcing as one of their strategies to be able to improve their core business focus.

However, as it happens, even though businesses understand the need for outsourcing, sometimes they are not able to maximize their returns from it.

To mitigate these problems that most businesses today face, we’ve discussed some of the key solutions in the previous edition with a help of a case study. Some of these were:

  • Improving the vendor management function: 43% of the respondents on outsourcing reported that improving their vendor management function helped in significant savings.
  • Improving the service transition: spending more time in service transition was one of the biggest opportunities for improvement for organizations.
  • Spending more time on vendor selection: 28% organizations felt that they need to spend more time on the vendor selection process in order to maximize their outsourcing returns.
  • Auditing your outsourcing provider: Only 22% of the organizations said that they audit their providers, which is a key to maximizing your returns from outsourcing.

Outsourcing article 2.1Image via Deloitte

In this edition, we’ll continue our discussion and identify some more ways in which you can maximize your ROI from your outsourcing budget for 2018.

Create Better Service Agreements

Creating better service level agreements with your provider at the onset of your outsourcing process is a great way of ensuring effectiveness in your outsourcing. In fact, 28% of the companies have reported that one of the major opportunities for improving their outsourcing is by creating better service levels.
However, owing to the focus required for your core processes, it is sometimes not possible for companies to be thorough in the service level creation.

A common issue that outsourcing providers face is that the terms and conditions on the agreement push them to take a reactive stance rather than proactive. Being extremely focused on cost-effectiveness can limit your outsourcing providers.

The result of this is that most of them wait for you to tell them about making improvements rather than doing it on their own. Here is where a third-party advisor can help you.

It is found that over 50% of respondents reported that third-party advisors have added value for them. This is most crucial in stages such as negotiating, contracting and business case development with your outsourcing partner.

PSI has been known to deliver the highest levels of outsourcing services to their clients. A renowned healthcare solutions provider in the US, have used PSI’s services exclusively for their .NET, MS SQL and other applications development. The services provided by PSI has exceeded their expectations quite often.

Track Innovation From Outsourcing

Innovation is a core output of outsourcing. However, most companies are unsure how to track and measure this parameter in their outsourcing efforts. 65% respondents have reported that they do not measure innovation.

However, it is undeniable that innovation is the main driver of value in any outsourcing relationship with your vendor. Innovation is used for increasing quality levels and improving user experience while lowering costs. This makes it a great way for you to maximize your revenues.

Sadly most companies do not have a great relationship with their vendors, which is essential for innovation. So much so that only 19% respondents said that they always leverage their current providers for any outsourcing, whereas 70% people leverage them only sometimes.

Outsourcing article 2.2Image via Deloitte

Most of them do not even make innovation a part of their contract. Only 21% companies include innovation as a key part of contracting.

By including innovation in your contracting and tracking it, you can deliver quality experience to your customers at reduced time. This will help you grow your revenues from outsourcing.

Innovation is at the core of PSI’s values and work ethics. These values together with their knowledge and expertise has helped them provide efficient and reliable outsourcing services to their clients.

Utilize Technology In Outsourcing

We’ve discussed how innovation needs to be emphasized for maximizing your returns from outsourcing. There are certain technologies that can drive innovation in your outsourcing.

For example, cloud computing is known to have an impact on your outsourcing. 61% respondents said that cloud computing helps to lower delivery costs, and another 21% said it can enhance innovation.
What’s even more interesting is that the use of Robotic and Cognitive Process Automation is being seriously evaluated or already implemented by 70% companies to improve outsourcing.

This trend clearly demonstrates that the use of technology in outsourcing can drive innovation. This in turn will help you maximize your returns from your outsourcing budget.

No matter how difficult or challenging the technological requirements might be, PSI has always delivered great results. A client of PSI who is a leading provider of people and technology to Defense, Government and Mining industries, says that the project delivered was a great success. It involved many complex tasks and last minute enhancements that PSI has successfully delivered on time.

Be Prepared To Accept Change

In today’s dynamic landscape where customer demands and market trends are constantly changing, it is important to be prepared to accept changes well. This is especially important from the outsourcing provider’s perspective.

However change is something that can disrupt the relationship with your outsourcing provider. When your provider is not able to accept the changing needs of your company and adapt themselves accordingly, it can be a waste of time and resources. 46% of the respondents in a survey reported that they experience challenges in change management.

outsourcing article 2.3Image via Deloitte

Hence it is important right at the vendor selection stage, to ensure that your provider has the capability to scale up and adapt to the growing needs of your company.

PSI’s experience and expertise in outsourcing has helped them manage their resources efficiently and deliver projects even in the face of ad-hoc changes in requirements. They are a reliable and flexible partner to their customers who are great at building rewarding relationships.

Ensure Your Provider Is Competent

For the success of your business, it is important to hire the right people. They need to have the necessary skills required to get the job done.

Unfortunately, a study has found that 23% companies reported that their outsourcing providers lack qualified resources. This is detrimental to the success of your business.

When selecting your outsourcing provider, you must ensure that they have a robust recruiting and retention process in place. Not only do they need to hire the right people, but also foster an environment where such people feel good about working in.

You also need to ensure that your outsourcing provider invests time and effort to train their employees. This is crucial for delivering quality service to you and to your customers.

PSI hires only the best minds in the industry who have the skills and experience required to deliver exceptional results to their clients.

Conclusion

These are some of the proven methods that can help you maximize your returns out of your outsourcing budget. If you haven’t done it yet, it’s high time that you start implementing these strategies to get the best out of your outsourcing.

With our team of qualified professionals and cutting-edge technology, PSI can help you maximize your outsourcing ROI. Contact us, now!Maximize Returns On Outsourcing Budget 2018 Edition
In our previous edition of this topic, we’ve discussed how organizations rely on outsourcing as a means of cutting costs. We’ve also seen how businesses adopt outsourcing as one of their strategies to be able to improve their core business focus.
However as it happens, even though businesses understand the need for outsourcing, sometimes they are not able to maximize their returns from it.
To mitigate these problems that most businesses today face, we’ve discussed some of the key solutions in the previous edition with a help of a case study. Some of these were:

  • Improving the vendor management function: 43% of the respondents on outsourcing reported that improving their vendor management function helped in significant savings.
  • Improving the service transition: spending more time in service transition was one of the biggest opportunities for improvement for organizations.
  • Spending more time on vendor selection: 28% organizations felt that they need to spend more time on the vendor selection process in order to maximize their outsourcing returns.
  • Auditing your outsourcing provider: Only 22% of the organizations said that they audit their providers, which is a key to maximizing your returns from outsourcing.

Outsourcing article 2.1Image via Deloitte
In this edition, we’ll continue our discussion and identify some more ways in which you can maximize your ROI from your outsourcing budget for 2018.

Create Better Service Agreements

Creating better service level agreements with your provider at the onset of your outsourcing process is a great way of ensuring effectiveness in your outsourcing. In fact, 28% of the companies have reported that one of the major opportunities for improving their outsourcing is by creating better service levels.
However, owing to the focus required for your core processes, it is sometimes not possible for companies to be thorough in the service level creation.
A common issue that outsourcing providers face is that the terms and conditions on the agreement push them to take a reactive stance rather than proactive. Being extremely focused on cost-effectiveness can limit your outsourcing providers.
The result of this is that most of them wait for you to tell them about making improvements rather than doing it on their own. Here is where a third-party advisor can help you.
It is found that over 50% of respondents reported that third-party advisors have added value for them. This is mostly crucial in stages such as negotiating, contracting and business case development with your outsourcing partner.
PSI has been known to deliver the highest levels of outsourcing services to their clients. A renowned healthcare solutions provider in the US, have used PSI’s services exclusively for their .NET, MS SQL and other applications development. The services provided by PSI has exceeded their expectations quite often.

Track Innovation From Outsourcing

Innovation is a core output from outsourcing. However most companies are unsure how to track and measure this parameter in their outsourcing efforts. 65% respondents have reported that they do not measure innovation.
However, it is undeniable that innovation is the main driver of value in any outsourcing relationship with your vendor. Innovation is used for increasing quality levels and improving user experience while lowering costs. This makes it a great way for you to maximize your revenues.
Sadly most companies do not have a great relationship with their vendors, which is essential for innovation. So much so that only 19% respondents said that they always leverage their current providers for any outsourcing, whereas 70% people leverage them only sometimes.
Outsourcing article 2.2
Image via Deloitte
Most of them do not even make innovation a part of their contract. Only 21% companies include innovation as a key part of contracting.
By including innovation in your contracting and tracking it, you can deliver quality experience to your customers at reduced time. This will help you grow your revenues from outsourcing.
Innovation is at the core of PSI’s values and work ethics. These values together with their knowledge and expertise has helped them provide efficient and reliable outsourcing services to their clients.

Utilize Technology In Outsourcing

We’ve discussed how innovation needs to be emphasized for maximizing your returns from outsourcing. There are certain technologies that can drive innovation in your outsourcing.
For example, cloud computing is known to have an impact on your outsourcing. 61% respondents said that cloud computing helps to lower delivery costs, and another 21% said it can enhance innovation.
What’s even more interesting is that the use of Robotic and Cognitive Process Automation is being seriously evaluated or already implemented by 70% companies to improve outsourcing.
This trend clearly demonstrates that the use of technology in outsourcing can drive innovation. This in turn will help you maximize your returns from your outsourcing budget.
No matter how difficult or challenging the technological requirements might be, PSI has always delivered great results. A client of PSI who is a leading provider of people and technology to Defense, Government and Mining industries, says that the project delivered was a great success. It involved many complex tasks and last minute enhancements that PSI has successfully delivered on time.

Be Prepared To Accept Change

In today’s dynamic landscape where customer demands and market trends are constantly changing, it is important to be prepared to accept changes well. This is especially important from the outsourcing provider’s perspective.
However change is something that can disrupt the relationship with your outsourcing provider. When your provider is not able to accept the changing needs of your company and adapt themselves accordingly, it can be a waste of time and resources. 46% of the respondents in a survey reported that they experience challenges in change management.
outsourcing article 2.3
Image via Deloitte
Hence it is important right at the vendor selection stage, to ensure that your provider has the capability to scale up and adapt to the growing needs of your company.
PSI’s experience and expertise in outsourcing has helped them manage their resources efficiently and deliver projects even in the face of ad-hoc changes in requirements. They are a reliable and flexible partner to their customers who are great at building rewarding relationships.

Ensure Your Provider Is Competent

For the success of your business, it is important to hire the right people. They need to have the necessary skills required to get the job done.
Unfortunately, a study has found that 23% companies reported that their outsourcing providers lack qualified resources. This is detrimental to the success of your business.
When selecting your outsourcing provider, you must ensure that they have a robust recruiting and retention process in place. Not only do they need to hire the right people, but also foster an environment where such people feel good about working in.
You also need to ensure that your outsourcing provider invests time and effort to train their employees. This is crucial for delivering quality service to you and to your customers.
PSI hires only the best minds in the industry who have the skills and experience required to deliver exceptional results to their clients.

Conclusion

These are some of the proven methods that can help you maximize your returns out of your outsourcing budget. If you haven’t done it yet, it’s high time that you start implementing these strategies to get the best out of your outsourcing.
With our team of qualified professionals and cutting-edge technology, PSI can help you maximize your outsourcing ROI. Contact us, now![:]