Exclusive Interview with Vivek Khatri – CEO, EmizenTech on “Top App Firms”
In this exclusive interview, He shared his insights on outsourcing and several more things. Let’s check his success story and thoughts.
1. What are the different types of outsourcing?
We live in a world where our conventional views are being challenged by innovation, Every. Single. Day. Therefore, there is no fixed number of types of outsourcing in this world. But there are four major types that can be described as.
Outsourcing of professional human resources. Eg., Hiring app developers.
Outsourcing of product manufacturing or assembly facilities. E.g., Apple getting their iPhones manufactured in China.
Outsourcing of services. E.g., Ecommerce companies getting package delivery services from logistics companies.
Outsourcing of service or task for a limited time. E.g., Hiring an app developer for one app only.
2. Why do you think companies outsource, what benefits does outsourcing provide them?
Companies outsource for only two reasons, i.e., efficiency and productivity. And the long list of benefits provided by outsourcing comprises a few major benefits, which are, minimization of operating cost, efficient time management, a wide range of expertise, and no investment.
3. What would you say are the top risks of outsourcing?
If you had asked me the same question a couple of years ago, I would have been able to name quite some risks pertaining to outsourcing. But things have changed and it’s essential nowadays. Still, poor work management, suffering communication are the biggest causes of the infamy of outsourcing businesses.
4. What challenges do companies face when outsourcing their call center functions and how should they minimize risk to their core business?
I think outsourcing of call center functions may invite some common challenges like language and cultural barriers and lack of business domain. In my opinion, these are not major issues and can be minimized by professional training schemes.
5. What are the top 3 questions a company should ask a potential outsourcer?
My favourite tope 3 questions are:
1. Have you worked in a similar domain before? If yes, show me your work.
2. What is your technological expertise? Tell me about your tech stack in detail.
3. What does your development process or cycle look like?
6. What industry sector outsources the most?
Nearly every industry is outsourcing nowadays. But accounting, IT, marketing, and development are the industries that outsource the most.
7. What are the top 5 reasons organizations outsource?
To be honest, there could be any reason behind an organization chooses to outsource their work, but the reasons we come across the most are:
Outsourcing is ridiculously cost saving.
Clients want to focus on their core businesses while we take care of the development.
Better services because outsourced work goes straight to specialized ones.
Efficiency that you can always appreciate.
8. What effects do legislation (e.g., DMA/FTC, etc.) have on the outsourcing industry and what are your views on this?
The legislation addresses one of the weakest aspects of the outsourcing industry, i.e., lack of trust. It helps in providing an extra layer of trust that is necessary for both parties. Therefore, I would recommend anyone who is looking forward to outsourcing their work to check the legal implications first then only proceed.
Personally, I am on the side of legislation and by all means happy to discuss legal implications with my clients.
9. What challenges do offshore outsourcers face that domestic ones do not?
There are two major challenges outsourcers can face, those are, cultural and language barriers. Any work which directly affects a customer requires outsourcers to understand the target audience so that they can deliver the work that is culturally appropriate and does not seem foreign.
10. What are the key drivers for companies to outsource offshore?
There are several key drivers for companies to outsource offshore, some of them are:
Hiring only expert professionals
Transparent process assurance
Efficient time and project management
Significant per project savings
11. How have the campaigns and projects companies outsource changed over the last 5 years?
The last five years or should I include the whole decade, it’s been the most catalyzing time of technological advancement as well as the realization of masses towards the potential of globalization. In other words, the world has become one small country and the technologies and dependency on technologies have grown exponentially.
As a result, outsourcing has turned into a common practice from a risky game.
12. What would you say are the top 5 questions a company should ask a prospective outsourcer?
You can never be too careful, so my advice is apart from what I suggest, a company should always ask about their most important concerns. My top 5 questions are,
1.What types of work have you done so far and what industries have you served?
2.What are the technologies you utilize in your work and in what technologies do you specialize in?
3.What is your development process or cycle?
4.How safe is my data and what safety and security compliances do you incorporate?
5.What makes you different from other outsourcers?
13. Do you feel that a client of an outsourcer should have unrestricted access to agents/reps working on their behalf and why do you believe this?
Only if it is mutually agreed between both parties and thoughtfully discussed and it does not compromise any data security. And this agreement should be in the papers as well.
If both parties have agreed upon it then this could help in streamlining the work process and communication. The project monitoring and deliverables can be flawlessly channelized between the outsourcer and the company.
14. What industry sectors tend to outsource more than others (e.g. financial services,
In my life I have observed various industries that have been outsourcing, we interact with these industries every day in our lives. These are accounting, BPOs, IT, digital marketing, software development, engineering, healthcare, etc.
15. What management and motivation challenges do outsourcing companies face with their staff?
With years of experience, we have found multiple ways to minimize such challenges but like everyone, we do have our good days and bad days. On bad days we may face,
Poor time management
Miscalculation of a problem
16. How can outsourcers and clients ensure a fair partnership agreement?
Like I have mentioned before, building trust is the most important part when it comes to outsourcing business. Therefore, in order to build a fair partnership agreement, both parties must discuss the contents of their agreement and ensure mutual accord.
Then there are some guidelines, such as, it is important to ensure the credibility of both parties, there should be transparency between the both what, all deliverables and milestones must be consulted beforehand, and last but not the least, maintain healthy communication.
17. What are the main advantages of using brokers when considering outsourcing some, or all, of your contact center functions?
I think brokers are the ones who solve companies’ problems like they are solving jigsaw puzzles. They identify their needs and concerns, and they know what piece will go at what place, thus they help companies to find the right outsourcer for their project. And it’s a win-win situation for both parties.
18. What is the role of service standards when outsourcing?
If I were to explain it in the simplest words, setting higher service standards mean more business and greater client retention. The process can be started from Request for Proposal and further it can go through testimonials & client reviews, and even expertise showcase as well. Your record says a lot about you so keep that as good as possible, and professionalism does the rest of the trick.
19. What role do associations play in helping companies select and use outsourcing services?
Associations close the gaps of trust between a company and an outsourcer. They play a vital role in this whole process; it comprises several interviews with both company and the outsourcer and some background checks of the outsourcer as well. These interviews contain various questions pertaining to the project per se. It is their duty to help companies find the right outsourcer that can carry their task to completion within their budget as well.
20. Have you seen any trends in your area on the type of outsourcing companies that have established themselves in your area and what would you attribute this to?
Of course! If you pay attention you can also observe there are several trends that run in the outsourcing industry. It is all because that almost all other industry is turning their heads towards technology and there are not many who can help them.
As a result, there are tech companies that are dedicatedly serving a specific type of industry. For example, there are tech companies that are only serving the engineering industry to help them create new tools and management solutions. It’s all unbelievable and amazing at the same time.