| When your company is forming long-term | | | | Schemes.The provider should be driven to meet |
| offshore outsourcing relationships with | | | | the established customer expectations or even |
| another company, the foundation of the | | | | exceed it by adopting the performance based |
| success of this venture should be laid during | | | | pricing criteria. If performance of the |
| the negotiation period itself. The | | | | service provider exceeds expectations, then |
| centerpiece of this negotiation period is the | | | | incentives should be given; conversely, |
| Service Level Agreement.The aim of | | | | appropriate penalties should be imposed if |
| outsourcing is to gain value for the host | | | | objectives are consistently missed.4. Review |
| organization. There are several contrasting | | | | Periodically to Maintain Successful |
| views however regarding how to maximize value | | | | Relationships.Organize formal review meetings |
| and minimize risk by outsourcing. The | | | | often. During the meetings, both sides can |
| following best practices can serve as a guide | | | | discuss the performance of both teams and |
| when structuring your SLA, and then | | | | determine the future objectives or goals of |
| implementing and maintaining a relationship | | | | the company accordingly. They can also |
| with the chosen provider.Five Golden Rules | | | | discuss product reviews and deliverables |
| For Offshore Outsourcing1. Develop enduring | | | | during these meetings. Keep in mind that |
| relationships between key management | | | | performance objectives may need to be |
| personnel.The usefulness of the relationship | | | | continually revised according to changing |
| between the key management personnel of both | | | | market conditions and the opportunity costs |
| teams depends on good understanding and | | | | of both firms.5. Communicate Well & Often to |
| strong working ties between them. Studies on | | | | Bridge Cultural Differences.The parties |
| outsourcing success stories have demonstrated | | | | involved in an outsourcing relationship |
| that working chemistry in management and peer | | | | belong to distinct cultures, these |
| friendships among employees have proved to be | | | | differences have to be accepted and bridged. |
| important determinants in forming long-term | | | | The cultural understanding between the two |
| relationships that yield real value.2. | | | | organizations can be enhanced by organizing |
| Present a Quantifiable Objective.A useful | | | | social events, educating about company |
| performance criterion includes quantifiable | | | | background, participating in each othersà |
| objectives and clarifies expectations of the | | | | quality programs, etc. Communication really |
| quality of service. If you can get ahold of | | | | is the key to a healthy relationship. It may |
| SLAs for comparable projects, they will serve | | | | be helpful to send a loyal employee to the |
| as reasonable starting pointsóbut | | | | BPO site for a few months to facilitate |
| remember, these are negotiable. In any event, | | | | understanding in the implementation |
| ensure that exact objectives and expectations | | | | phase.Scott Hawksworth writes for a free |
| are included in the SLA and are understood by | | | | informational resource on outsourcing. See |
| both organizations prior to implementation.3. | | | | for more information on call center |
| Pre-determine the Incentives and Penalties | | | | outsourcing. |