Have you ever thought about outsourcing in your organization? Maybe you’re excited about the possibilities, but that little voice in your head is filled with uncertainty. You’re not alone. Many companies dive into global business services (GBS) with high hopes but often end up grappling with setbacks that seem overwhelming.
I’ve spent over 20 years in the trenches of the outsourcing and offshoring industry. I’ve seen the good, the bad, and the downright ugly when it comes to GBS. Trust me; I’ve made mistakes and learned valuable lessons along the way. Let me share some do’s and don’ts that can steer you toward success.
Do: Define Clear Objectives
Before you jump into the outsourcing game, ask yourself—what do you want to achieve? This seems basic, but it’s vital. Clear objectives guide your entire GBS strategy.
- Increase efficiency.
- Reduce costs.
- Focus on core competencies.
Your objectives should be specific. Instead of saying, “I want to save money,” say, “I want to reduce expenses by 20% over the next year.” This clarity sets the stage for everything else.
Don’t: Underestimate Cultural Differences
Culturally, every region has its own quirks. Ignoring this is a recipe for disaster. In my experience, companies often overlook the importance of understanding how different cultures operate. For example, what works in the U.S. might not fly elsewhere.
Here’s what you should keep in mind:
- Communication styles vary.
- Work ethic and values differ.
- Holidays and local customs impact operations.
Invest time in cultural training for your team. It pays off! People who feel respected and understood are more engaged and productive.
Do: Choose the Right Partners
Your choice of outsourcing partners can make or break your GBS strategy. You want partners who not only have capabilities but also share your vision. Look for organizations that:
- Align with your business culture.
- Show proven success in your industry.
- Offer innovation and flexibility.
Before finalizing any agreements, don’t just look at their praises—ask for real references. Speak with current clients about their experience.
Don’t: Skip the Due Diligence
The urge to jump forward can be strong, but trust me—skipping due diligence is a huge pitfall.
Take the time to vet potential partners thoroughly:
- Evaluate financial stability.
- Check compliance with regulations.
- Understand their technological capabilities.
Remember, this isn’t just about picking a provider; it’s about forming a partnership. If your choice goes bad, it could hurt not only your workflow but your brand’s reputation.
Do: Embrace Technology
In today’s world, ignoring technology is not an option. It’s essential that your operations leverage the latest tools.
Utilize:
- Automation tools for repetitive tasks.
- Data analytics for decision-making.
- Collaboration software for real-time communication.
The right technology not only increases productivity but can also improve the quality of service. Make sure your team is well-versed in these tools and comfortable using them.
Don’t: Neglect Change Management
Change is inevitable when you bring in new processes. But neglecting change management can wreak havoc.
To combat this, focus on:
- Engaging employees early in the process.
- Providing continuous training and support.
- Communicating the reasons behind changes clearly.
People resist change when they don’t understand its benefits. Foster an open culture where feedback is welcomed. This not only eases the transition but builds a more resilient team.
Do: Measure and Adapt
You’re not done after you’ve launched your GBS operation. It’s crucial to regularly measure your success against the objectives you laid out earlier.
Use key performance indicators (KPIs) to gauge performance:
- Cost savings.
- Service quality.
- Employee satisfaction.
Adapt your strategies based on what the metrics tell you. This iterative approach keeps your operations aligned with your goals.
Don’t: Fear Failure
Let’s get real for a second. Failure is part of the game. If you’re investing time and resources into GBS, things won’t always go as planned. And that’s okay.
Learn from your failures. Each setback is a chance to gain insights. Share these lessons with your team. They encourage growth and resilience.
Case Study: A Real-World Example
Let me share a story from my time leading a shared service center for a global organization.
Initially, we missed the mark by not investing in cultural training. Our teams were frustrated, and productivity suffered.
Once we introduced cultural engagement initiatives, I saw a remarkable turnaround. Engagement levels soared. Our operations improved. We even hit our cost savings target within six months. Sometimes, the simplest solutions yield the biggest results.
Final Thoughts
Mastering GBS outsourcing isn’t rocket science, but it does require care and strategy.
Take the time to define your objectives, embrace technology, and don’t underestimate the power of culture.
And remember—fear of failure shouldn’t hold you back. You’re not alone in this journey; there are resources and communities like THEGBSEDGE to support you.
With a bit of courage and a lot of strategy, you can navigate the tricky waters of GBS outsourcing and come out stronger on the other side.
