The key factors in successfully outsourcing a business process include:
- Thoroughly analyze your process so you know your costs, and can determine the cost savings of outsourcing over a specific time period.
- Define roles and responsibilities in the outsourcing partnership, so there are no surprises, and so that goals and expectations are clear to both parties.
- Have measurable performance objectives-the speed of transactions, the time period to close the books, etc.-and establish performance incentives, both rewards and penalties, for meeting those objectives.
- Develop a detailed transition plan to ensure a smooth hand-off. Outsourcing is a major undertaking that benefits from careful advanced planning.
- Establish a clear dispute-resolution process to handle issues as they arise. This makes for smoother operations and doesn’t make every issue a contractual or legal problem.
- Monitor results for continuous improvement. Arrange long-term contracts on a yearly renewal basis, so there is an annual review of an outsourcer’s performance.
