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
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?
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?
Technology & Methodology Differences
Social and Organizational Differences
Travelling to clients’ locations
10. What are the key drivers for companies to outsource offshore?
Focus on core company areas
Get access to vast technology skill-sets
Low turn-around time
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)
Sales and marketing
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
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.