Why Outsource?

Companies are increasingly looking to outsource more of their non-core functions to reduce cost and they continue to prefer lower cost solutions.

US Companies, nearshoring business services to Mexico and Latin America, they been asked Why outsource?

Here what they think:

  • Reduce or Control Cost
  • Gain access to ITC resources unavailable internally
  • Free up internal resources
  • Improve business or customer focus
  • Accelerate company reorganization / transformation
  • Accelerate projects
  • Gain access to management expertise unavailable internally
  • Reduce time market

The most important steps to outsourcing

Passion for Innovation

The service provider and customer must be passionate about collaborating with one another to develop innovative products and services. Both parties must have the same objective in mind, being creative and responsible for each other’s work.

Senior Management Relationships

Strong peer friendships and successful working methodologies with one counterpart are a critical success factor in building and growing profitable long term relationships.

Criteria and Quantifiable Objectives

Having clear goals and objectives for each party to accomplish, creates a commitment and responsibility to one another. This makes the relationship stronger.

Special Board of Members

In order to have a smooth and effective operation, it´s necessary to have a committee or board to overview responsibilities.

Incentives and Penalties

Getting rewards for achieving and exceed goals leads to positive results. This will increase the understandings in payment and work, commitments and will help both sides understand the work code better over the course of the relationship.

Periodic Formal Reviews

This is one of the most important steps, in order to have a successful outsourcing. Frequently reviews progress and set new goals.

Reasons for outsourcing

  • Cost
  • Skills
  • Operational Flexibility
  • Infrastructure and Security Risk
  • Geopolitical Stability

Benefits of Outsourcing

  • Cost Savings
  • Time Savings
  • Focus on core business activity
  • Excellent Support
  • Operational Flexibility