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Ten Things You Should Know Before Outsourcing

Insight :
Is outsourcing the new Holy Grail for R&D organizations? The IT departments in the enterprise went first and discovered lower costs and improved efficiencies by outsourcing call centers and back office projects offshore. Now the R&D development department in the same enterprise wants to follow the same outsourcing route and realize comparable results. It's true that outsourcing can yield significant benefits. However, as many early adopters of outsourcing learned, there are some important signs a smart company takes note of before venturing into outsourcing. Long Circle recommends keeping the following points in mind to take you to your goals.

Outsourcing is a process that must be managed :
If a company assumes that outsourcing means that they can toss their R&D projects over the fence (or in the case of offshore outsourcing, across the ocean) and extraordinary results will follow, they're about to have a learning experience. Outsourcing is a process and processes must be managed to reap the best results.

The outsourced piece involves planning, including these high-level steps:
1. Identify key stakeholders and the internal outsourcing team.
2. Obtain and retain executive sponsorship.
3. Assign the right project manager to interface with offshore outsourcers
4.Identify goals, both long-term and short-term
5. Identify suitable projects to outsource
6.Define the process that feeds the offshore vendor
7.Define metrics, including stages and dates
8.Plan for and transfer technology
9.Communicate goals and change to employees
10.Measure performance

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