Exclusive Interview with Amit Shukla – DIRECTOR, Next Big Technology 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?

Outsourcing can be defined as utilizing external resources to get the project done. It has both pros and cons. Outsourcing can be broadly categorized into the following 3:

Local outsourcing (Onshore): Taking services of the company (ies) located in once own country or located in the nearby region Nearshore Outsourcing: Taking services of the company (ies) located in the countries having similar time zones with the limited time difference Offshore outsourcing: taking services from a country that is located far away from yours

2. Why do you think companies outsource, what benefits does outsourcing provide them?

Outsourcing offers many advantages; these may vary from company to company

Lower cost is the major factors that tempt companies to outsource Eliminates the need for hiring skilled dedicated teams Increase and decrease the team size with various skill-sets as per the requirements Reduced timelines for the projects Low investment in the infrastructure Major responsibility relies on the companies to who project has been outsourced

3. What would you say are the top risks of outsourcing?

Following may be some risk associated with outsourcing

There is always the risk of divulging confidential data There are some hidden costs that might not be anticipated while finding a partner Lack of quality and professionalism Loss of control over your operations and deliverables Poor communication Low productivity Outsourcing partner may go bankrupt of many go out of business

4. What challenges do companies face when outsourcing their call center functions and how should they minimize risk to their core business?

Not having proper knowledge of the company, functions, vision, objective, etc. Employees do not understand the nuances of your language and culture Lack of security and privacy of the confidential data Low customer satisfaction rate resulting in high attrition rate Compromised service quality, sub-par service, lack of consistent performance

5. What are the top 3 questions a company should ask a potential outsourcer?

How is your company different from other companies that are offering outsourcing solution? How long have you been in the business? Who are you,r clients?

6. What industry sector outsources the most?

Information Technology Customer Support Media Health and Pharma

7. What are the top 5 reasons organizations outsource?

Save operational and resource costs Access to the latest technologies that might otherwise be very expensive Access to specialized resources without having to hire them permanently Can focus on their core competencies Make the process more speedy thus saving time

8. What effects do legislation (e.g. DMA/FTC etc) have on the outsourcing industry and what are your views on this?

The impact of legislations vary from country to country Every company has to adhere to the legislations of the company to who they are outsourcing Sometimes these laws are not very stringent and companies can bear the burn Legislations generally favour their own country’s companies It can take a long time to deliver the verdict, clear loss for the outsourcing companies

9. What challenges do offshore outsourcers face that domestic ones do not?

Communication Problems Technology & Methodology Differences Social and Organizational Differences Travelling to clients’ locations

10. What are the key drivers for companies to outsource offshore?

Cost Focus on core company areas Get access to vast technology skill-sets Low turn-around time Risk sharing Low overhead costs

11. How have the campaigns and projects companies outsource changed over the last 5 years?

Shift to smaller projects and increased specialization Startups contributing to the growth of IT outsourcing Companies hiring more cloud computing services Emphasis on building a better relationship with the partners

12. What would you say are the top 5 questions a company should ask a prospective outsourcer?

What makes your services worth the investment? How many individuals will work on my project? Security measures that you will take to protect the clients? How often do you train your employees? What if my requirements change?

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?

Yes, I do think so, unlimited access them to get quick and more information when required. It brings in more transparency and reduces the budget and timeline for a project.

14. What industry sectors tend to outsource more than others (e.g. financial services, utilities etc)

Information Technology Sales and marketing Customer support Telecommunication Retail

15. What management and motivation challenges do outsourcing companies face with their staff?

High employee attrition rates Meet customer expectations Employees can’t cope up with the changing requirements of the clients A strict timeline brings down efficiency and quality Limited resources and infrastructure

16. How can outsourcers and clients ensure a fair partnership agreement?

Define the scope of work, goal, objectives clearly Communicate clearly about the budget for the project Make a clear agreement for data and intellectual property rights Use of flexible methodologies in the development process

17. What are the main advantages of using brokers when considering outsourcing some, or all, of your contact center functions?

They have the domain knowledge so they can select the best fit for your organization They can negotiate the best deals for you They can offer you free advice Offer escrow services

18. What would you say are the top 5 questions a company should ask a prospective outsourcer?

What’s your experience in my industry? What’s your financial health? What security measures do you have in place? What’s your migration process?

19. What is the role of service standards when outsourcing?

They make sure the project is delivered with quality They make sure the proper process is being followed They make sure that the final outcome is the same or better as agreed/ expected They make sure the timeline and budget are not exceeded as agreed

20. What role do associations play in helping companies select and use outsourcing services?

Associations promote best practices in outsourcing, lobbying government and regulators, and provided research and information to companies and managers using outsourcing

21. 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

I am from India, and in my country companies find their outsourcing partners. Over the past few years, I have seen more and more companies are finding outsourcing partners. This trend will grow even further due to better resources and infrastructure. Companies native to India also prefer local outsourcing only.