My name is Sath Sathyanarayan. In addition to pioneering work in outsourcing for 26+ years I have provided leadership to RPA initiatives, program management, product development and IT organizations. I have held senior executive positions in a Fortune 500 company, Founder/CEO of a Silicon Valley startup, author of a book on offshoring best practices, invited speaker at industry conferences, trainer, coach, mentor and a trusted advisor to a range of companies across industries. While I am the primary person to address your issues, I bring in associates and specialized firms as needed.
There is so much hype about RPA. This article helps you understand on the ground realities.
What is outcome-based offshore outsourcing?
Traditional outsourcing models focus on input; for example man hours, person months, emails answered or number of calls processed. On the other hand outcome-based focuses on output i.e. reaching a business goal such as customer satisfaction, customer loyalty, support cost as a percentage of revenues etc.
By far the most common reason for hiring offshore service providers is to save money--often, a lot of money. Yet surprisingly often those big savings turn into nickels and dimes. "I don't know what happened," one outsourcing manager told me recently, "but we've gone at least 25% over budget for the past six Quarters. This whole program is out of control."
Many companies are finding that once the “honeymoon period” in offshoring is over, issues tend to crop up with the offshore vendor. When you started working with your vendor to set up the initial project(s) for offshore work, they were attentive. You felt they considered you to be the most important client in the world. They took the time to educate their people about your company’s specific needs. Unfortunately, things have changed. Now your offshore vendor seem distracted and distant; their staff don’t seem to remember all of your needs or seem indifferent to them.
Let's reduce costs by going offshore with some development or service functions! The board and management agree to set up offshore activities in a place like India, China, Russia, Slovenia, or Bulgaria. Time passes. Everyone is happy. Right? Well, maybe.
Many companies are finding that their goals are not being met in a consistent way. Issues creep into the picture. These issues are really symptoms of deeper problems. Issues that frequently arise are: