How to choose between near-shoring, offshoring, outsourcing, regional hub?

Hi Marieta,

I would advise the Company to go for process automation rather than outsourcing. Having outsourcing still means that there is an expensive human work and not 100% guaranteed quality of the process.

With some of the automations (for example RPA) the Company can automate and save even 90 % of its costs and ROI in 6-8 months. At the same time, this is 100% errors free process (the human errors are possible only for the % of the exceptions that will remain manual).

For sure the Company should make cost&benefits analysis prior taking the final decision.

BR

Milena

Hi Marieta,

Business process outsourcing is quite popular and benefits are well documented.

For me, however, the core advantages are :

• expert support- collaborative working and sharing best practices
• allowing greater focus on core activities
• enhancing services to the end user
• the right partner that you choose can create new opportunities and helps your business to increase value in long-term.

The business process outsourcing company can support you as well with redesigning the office layout and facilities, automation and the application of the proper technology, including AI, process flow review, offsite support and nearshore solutions.

Before choosing what do you want from the outsourcing partner company you need to make an analysis of the following steps:

1. Evaluate you operational model and consider different options
2. Make a full process appraisal in order to identify the current challenges of your business
3. Consider new ways of working. Think of solutions that will resonate best with the culture and the needs of your business.
4. Assess how and what KPIs and SLAs will drive improvements in your business outcome.
5. Review service - integration opportunities - focus on flexibility and agility
6. Make a cost/benefit analysis
7. Make analysis how to avoid future costs
8. Make a PESTELE review. Thinking about how political, economic, social, cultural, technological, environmental, legal and ethical risks can affect your future planning.

Charles Darwin said:

It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change

Hope that helps. I am happy to support you with more details on how to organise outsourcing.