Why and How to Drive an Effective Outsourcing Engagement

One of the proven drivers of innovative solutions that have helped to drive business value is human capacity.

However, this is not sufficient enough to challenge existing systems or solutions but rather depend on technology to create business outcomes that have stood the test of time. These combinations of human skills and technological functions have helped to ease business practice.

In today’s competitive business climate, organizations continuously thrive to stay ahead of their competition by capturing a competitive edge for themselves within the industry they operate.

This is a feat that various researches have supported, that no organization is strong enough to absolutely cater for all its business needs to possess competitive advantage.

Therefore, gaining competitive edge in today’s business world cannot be solely gained by an organization absolutely depending on its strength and capacity.

Presently, outsourcing which represents a strategic business solution has been structured for today’s business value.

The business model which over the years gained global acceptance within the business community, has evolved from being a traditional business capacity enabler to modern collaborative engagement (between two or more organizations) that provides focus on core business competence for the users (clients).

Before now, outsourcing providers took total responsibility for outsourcing contract outcomes which represents quantitative significance that lack qualitative contents.

This characterized significance without qualitative content could be traced to the high focus on cost reduction as a major value derived from outsourcing, as projected by most clients of outsourcing services. These clients see value creation as an exclusive obligation of the providers of outsourcing services which ordinarily should be collaborative.

As outsourcing contracts mature, clients gradually shift focus on set objectives and expect the providers to take total ownership of the process, including service improvement.

With this traditional approach, not only are the numerous values of outsourcing bartered, there is divergence from the model objectives and standards.

When clients and providers approach outsourcing engagement with shared responsibility, value creation is synthesized alongside other set metrics and business objectives for choosing to outsource.

Clients who subscribe to outsourcing services must approach outsourcing engagements with shared and collaborative view with their providers.

Today’s outsourcing values thrive on positive business transformation, flexibility and innovation. These are indices that accompany equal interest and values from both clients and providers. When an organization outsources a part of its business function, the impact must be felt across the entire ecosystem of the firm’s business.

It is on this premise that outsourcing governance remains a key driver in the enactment of collaborative outsourcing in today’s engagement.

The rules of engagement for outsourcing contracts should be set to steer accountability and clarity of functions, roles and responsibilities for both parties. In setting this control mechanism, both parties should ensure that, the set rules promote collaborative reaction towards set contract objectives. This approach set the tone for business insights that complement contract oversight and efforts.

Organizations in Nigeria need to take a leap towards collaborative outsourcing engagement; at least to comply with Einstein’s admonition of insanity: “Repeating conventional approaches and still expecting different results”. Organizations who outsource and still share responsibility for the results and resources used in the engagement are the ones primed for business transformation and innovations from using outsourcing services.

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