Here is the last installment on outsourcing FAQs.

7. Who are some well-known offshoring companies?
Some of the top BPO service providers include:
India - Nipuna, Progeon, Spectramind, WNS
Philippines -- eTelecare, Ambergris Solutions
Russia -- LUXOFT

Careful planning is needed before selecting an offshore vendor. Most companies select vendors based on their BPO service specialty. Some companies select a country first, and then choose the top vendor there. Overall, it is advisable to select an operational model before a vendor.

8. How do you develop an offshore outsourcing strategy?
After picking a process to outsource and an operational model to use, select a country and a vendor to work with.

In selecting a country, study the risks and benefits of outsourcing in that location. These include political stability, cultural issues, infrastructure, labor pool and many more.

Next, choose a vendor. Shortlist a number of vendors based on experience, expertise, cost, and financial stability. Remember to determine the best delivery model (pure offshore, onsite/offshore, onsite/onshore/offshore) for your business.

Lastly, visit your shortlisted vendors to personally evaluate their capabilities. Take time to find the perfect vendor for your business by negotiating and building a relationship with each.

9. What are the risks to consider in picking an offshore location?
Offshore location risk factors include infrastructure instability, offshore resources management, information confidentiality, time zone differences, cultural differences, language barriers, unknown suppliers, uncertain legal rights, and geopolitical instability.

10. What criteria do companies use when they select a business process to offshore?
The criteria for selecting a business process to offshore are cost base, size of labor, presence of interlinkages that would be violated by relocation, availability of skilled offshore employees, and difference between onshore and offshore wages.

Experienced companies implement a phased approach. First, they start out with processes that require little interaction like data entry and application maintenance. Next, they move on to value added processes such as customer support, accounts payable, or software development. Finally, they use dedicated center or joint venture operational models.

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