Thursday, February 09, 2006

Offshore Outsourcing : Size Matters

In Offshore Outsourcing size matters a lot. Now the trend in overseas deals has come where it is believed that smaller is better. This concept is becoming more and more general and useful in making the contracts with the overseas vendors. It is found that in such deals the big contracts with a single service provider would not work that much properly as the chances of problems or failure may arise. So it is better to distribute the whole work in small segments to the different overseas service provider. It reduces the overall risks of the business process also. It also becomes tough to handle such big contracts with a single company or single service providers. Failure of the services in any areas by the vendors would also bring the failure or the end of the whole project or contract. So more and more companies are now adopting this new trend of distribution of the work in Offshore Outsourcing.

In Offshore Outsourcing the trend of smaller agreements with specific business objectives is prevailing in the market rapidly. Now the companies are not relying on a single service provider for the whole contract but instead of it they prefer to distribute the work to the different service providers. It not only helps in reducing the risk of the process but also help clients in maintaining the overall deal. Though maintaining different service providers at different or same time is bit painful in Offshore Outsourcing. Your management is required to be much more focused and proper for handling such overseas deal. Such deals become the multisourced deals and require bit expertise also. You must be clear with your company’s mission while dealing with multiple service providers. Negotiation and management skills also must be up to the mark. Improper management might sometimes create problems while working with the concept of the multiple vendors. They also might take the benefit of it if you are found to be improper in Offshore Outsourcing.

Offshore Outsourcing

Offshore Outsourcing with multiple vendors’ concept is really very useful concept. Clients get lots of flexibilities while dealing in such a way. He also won’t have to be dependent on a single provider and will also get more and better options in such deal. He can also change the service providers if anything goes wrong as he has lots of options. If any thing goes wrong with a particular vendor, only that part of the project would get affected instead of the whole project. Best and quick replacement can also be implemented in such cases of the Offshore Outsourcing deals.

In Offshore Outsourcing all these indicates the flexibilities that the vendor has. All these could only be possible if the proper management is implemented during the process. The concept of use of multiple vendors is really useful one for the client for reducing the risk of the business process. In short Offshore Outsourcing with multiple vendors might get the place of the concept of working with the single vendor.