Strategies to Stay Ahead in the Offshore Outsourcing Domain

March 22, 2017 6:23 pm | Updated 1 year ago.

Offshore outsourcing in the past few decades has become generic with organizations looking beyond their geographical boundaries to source goods and services that could give them an added advantage and edge over their competitors. Offshore outsourcing received the much-needed thrust owing to the decimation of trade barriers globally and moreover the shifting of manufacturing activities from locations with high inventory cost like Europe and USA to emerging economies around the globe with low establishment cost. Offshore outsourcing thus became an important ingredient in the success of an organization. As consumers choose quality over cost, offshore outsourcing gained momentum. The creation of value through the process of offshore outsourcing has become one of the important strategies in today’s knowledge-based global economy.

The offshore outsourcing business is undergoing a change as traditional methods of offshore outsourcing are gradually replacing them with new and innovative methods of doing business. Today technology occupies the center stage. Technological competency has become a deciding factor today for organizations to have an edge over their competitors. Every organization needs to focus on strategic investments and complex set of commitments as far as technological advancements are concerned to move up the outsourcing value chain.

In this changing scenario, offshore outsourcing service providers need to move from low levels of knowledge leadership to higher levels in the value chain. Business Process Outsourcing service providers can move up the value-chain by providing to knowledge- intensive solutions. Business organizations dealing with offshore outsourcing should concentrate on building research & development centers to provide exclusive services. Some of the issues offshore outsourcing organizations needs to focus on are:

a) Develop strategic business alliance with clients
The offshore outsourcing service provider should analyze the risk associated with every outsourcing deal. Calculated and key investments in improving the quality, service and product innovation will put the service provider in an advantageous position. For example, TCS, when they started their work as an outsourcing service provider was involved in some basic work but gradually they evolved and soon became a knowledge –based service provider. , presently is known for providing exclusive technical know –on the design aspects of products. Companies thus need to critically understand the relationship between a customer and a vendor.

b) Vendors should concentrate on value -added solutions
Business organizations who want to stay ahead in the race should concentrate on offering high-value based solutions. Organizations today will need to innovate and offer new technology based solutions. They need to leverage their strengths that satisfy the needs of the clients. Thus, offshore outsourcing service providers need to keep on analyzing their offering and evolving at the same time.

c) Investment in Research & Development- Developing a proper research & development center is one of the keys to success in today’s ever-changing scenario. Offshore outsourcing organizations need to create technological and innovative capabilities to stay ahead of its competitors.

d) Developing a culture of ethical behavior – Outsourcing to an offshore location means transferring of values and practices along with services. It is the need of the hour to create an environment of shared values across cultures. In offshore outsourcing relationships that envisage to last for decades a set of common cultural values and code of conduct that are at par with international standards for legal and ethical behavior.

D2e is partners like Affinity Inc, has adopted a high level of automation and are ever ready to embrace changes that are taking place in the offshore outsourcing scenario. Offshore outsourcing firms around the globe will have to strategize and move ahead.