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Critical Success Factors for Outsourcing

By: Dr. Joe Greco

INTERNAL SUITABILITY FACTORS
1. Efficient internal organizational structure
2. Comprehensive experience with IT outsourcing projects
3. International corporate culture
4. Standardized and documented processes
5. Appropriate internal technical knowledge
6. Sustained management support

INTERNAL MANAGEMENT FACTORS
1. Preparation of a detailed project specification
2. Creation of a cultural sensibility among employees
3. Development of a comprehensive business case
4. Definition of clear project goals
5. Definition of project standards
6. Early internal change management

EXTERNAL SUITABILITY FACTORS
1. Good language abilities of the offshore employees
2. High quality of offshore employees
3. Standardized and documented processes on provider side
4. Comprehensive industry knowledge of the offshore provider
5. Legal and political stability in the offshore country
6. Financial stability of the offshore provider
7. Suitable company size of the offshore provider

EXTERNAL MANAGEMENT FACTORS
1. Creation of a partnership-like relationship
2. Ensuring of a continuous communication flow
3. Continuous controlling of project results
4. Definition of an accurate contract
5. Ensuring of a bilateral know-how transfer
6. Establishment of an efficient IT infrastructure
7. Composition of an appropriate project team

CHOOSING THE RIGHT OUTSOURCING PARTNER
1. A Partner who shares commitment to deliver quality
2. A Partner who has expertise and communication skills to help the enterprise transition to the new model
3. A Company with record accomplishments of building the tools and business processes to deliver a quality product and validate the success of their efforts
4. Company with right data securities facilities
5. A Company that can scale rapidly and effectively to meet new client demands
6. A Company with sound financials
7. A Company with solid management team and change management expertise


Sources for this article can be referenced by contacting the author or by accessing the links found in the bio section of this article.

There are many critical success factors to consider for outsourcing.

Dr. Joe Greco is Director for the Center for the Study of Emerging Markets (CSEM) located in Fullerton, California. As part of the Mihaylo College of Business and Economics at California State University, Fullerton, CSEM was established to promote the flow of global information and technology between the academic and business communities. In particular, CSEM studies the economic and cultural impact of offshore outsourcing on emerging markets. You may contact Dr. Joe Greco at 714-278-4125 or csem@fullerton.edu Sources for this article: Critical Success Factors of Offshore. http://www.international-outsourcing.de/CSF-Tool/csf_identification/csf_description.html#External%20Suitability%20Factors 2. Choosing Outsourcing Partner. http://www.vakilspremedia.com/Choosing%20Outsourcing%20Service%20Partner.pdf

Article Source: http://www.positivearticles.com. PositiveArticles.Com does not vouch for or necessarily endorse the contents of this article.


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