Table of Contents
Choosing a Country
Selecting a country or a destination for outsourcing business is not only based on the “why or what” but also “where” to ascertain the need for the growth and development of an organization. Therefore, a company management should analyze various components that would ensure a strategic position before implementing a procedure to outsource their business. The first attribute to consider should be the cost which acts as a motivator for outsourcing a business (Handley & Benton, 2009). Costs reassure the business on the need for minimizing the costs of setting a new plant as well as the costs associated with the production, maintenance, and distribution which is accompanied by the cost of raw materials, cost of labor and the costs of government policies. Similarly, the skills needed for the development of a company should also matter. The company should weigh the availability of skilled workers because of the availability of competition. Therefore, having skilled workers should be a boost to the development of the business.
Additionally, the language and culture of the new location should be chosen wisely because of the communication process as well as the cultural attributes that would affect the business. Furthermore, the technology infrastructure of the new host location should as well help in the growth of the business. The management should ascertain the availability of a reliable infrastructure that would facilitate the growth and development of the new business. The technology infrastructures would as well include the assessment of various attributes such as the natural disasters, civil unrests, strikes, and other mechanical disruptions that would affect the growth of the business (Handley & Benton, 2009). The management should consider reviewing the components that would ensure the continuity of the new business in their selected new location thus; the need for checking the availability and the quality of the physical infrastructure.
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Geopolitical risks should be assessed as well and the probability of a change in government structure that would pose threats to the continuity of the business. For instance, the management should check the history of a government and their stability without civil wars or political upheavals. Lastly, the Business Process Outsourcing partners (BPO) would be vital to choose because they make the efforts of maximizing the benefits of organizational outsourcing with calculated minimal risks.
Therefore, the outsourcing procedure would depend on the above-discussed factors to consider before selecting a country. China and Canada have been in good shape for new business ventures. Similarly, both countries have a history of having developed infrastructure as well as having skilled personnel hence; being the best destinations for closing up the project (Dvir, Raz, & Shenhar, 2003). The business would be based on setting up new businesses rather than importing products.
Choice of Outsourcing
Closing a project is based on the signing-off by the proposed clients that would be vital assets to the business. The management focusing on outsourcing their Site Renovation and Construction Security Plan should base their ideas on the availability of flowing job opportunities and the ready-made labor. Therefore, the management should release their resources to the new venture, procure essential tools for the job, index the project files, document the learned lessons from their clients, and then celebrate their success (Dvir, Raz, & Shenhar, 2003). The management should choose to outsource the project to other vendors in their new host country rather than managing the operations. Outsourcing would be ideal because of various reasons;
Outsourcing a project would lower the labor and managerial costs hence; having a positive impact towards the company’s revenues. Similarly, the company having outsourced the project would have ample time for other business processes which would be based on improving their overall performance (Deshpande & Richardson, 2009). Outsourcing may as well help an organization in focusing on global businesses and other world class capabilities that would help in the growth of the business. Furthermore, the organization would realize the benefit of freeing up of the managerial responsibilities as well as accessing the resources that aren’t available internally. Similarly, outsourcing would save costs and boost the capital of investing in the local organization as a way of maximizing their profits. Also, outsourcing would help in mitigating risks as they delegate responsibilities to other experts in the business thus; enjoying the benefits of re-engineering.
Settling Managerial Disputes
Disputes within an outsourcing business will cause the loss of dollars as well as the dropping of profit percentage if care is not taken. The loss of contract would be the biggest mistake a business could do when disputes arise hence; managers should ensure keeping a good interaction to avoid such instances (Jain, 2004). However, when the need arises, a dispute should be handled carefully by incorporating several techniques that would ensure a smooth running of the business regardless of the available disputes.
The first step to understanding is that when a dispute arises and both parties should have a talk to settle their differences. A face-to-face talk helps both parties to view each of their views on the subject matter. Similarly, the other technique is by using an adjudicator acting outside the courts. The adjudicator acts as a negotiator who would ensure that both parties come to friendly terms (Jain, 2004). Furthermore, the use of mediation could be helpful to the dispute affecting both parties. The mediator employs diplomacy hence; does not favor any part regardless of the issue. The contract should not be amended because the issue is personal and not businesswise. Therefore, both parties would come up with a solution to their problem thus; the continuity of the business.
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- Deshpande, S., & Richardson, I. (2009, July). Management at the outsourcing destination-global software development in India. In Global Software Engineering, 2009. ICGSE 2009. Fourth IEEE International Conference on (pp. 217-225). IEEE.
- Dvir, D., Raz, T., & Shenhar, A. J. (2003). An empirical analysis of the relationship between project planning and project success. International journal of project management, 21(2), 89-95.
- Handley, S. M., & Benton, W. C. (2009). Unlocking the business outsourcing process model. Journal of operations management, 27(5), 344-361.
- Jain Palvia, S. C. (2004). Global outsourcing of IT and IT enabled services: A framework for choosing an (outsourcee) country. Journal of Information Technology Case and Application Research, 6(3), 1-20.