Understand the handling of the business before contemplating outsourcing it offshore. Determine what facet of the business you want to outsource, why you want to do so, who will handle the offshore project and the time frame for its completion. Contact the outsourcing business company to do the necessary things.

Tips for outsourcing:

1. Define the current process. It allows you to understand the requirements and details of what actually needs to be done. It should be non-ambiguous and offer a measurement method. Information of specific customer queries and time required is of great help while transferring that process over to your new outsourcing partner.

2. Do a cost analysis of the proposed process. Have a realistic and solid estimate of the current operating costs of the process under consideration for outsourcing. Consider all the costs involved, even the marginalized expenditure to have a clear picture. The in-house calls can be answered within a certain time because of available support, but on transfer it can take longer both in time and in cost. Consider the costs honestly to work out the beneficial cost saving for the business.

3. Manage the relationship. Make efforts to establish a good relationship. Have a clear understanding of transfer terms. Communication channels should always be open with a flexible attitude. A liaison officer should take responsibility to address staff concerns of their jobs. He should keep the staff informed and have an effective and regular dialogue within the company. Transfer of employees should conform to employment legislation. A flexible contract benefiting both parties can be drafted. It allows you to innovate to changing circumstances and renegotiate the contract before the term ends for the employees benefit.

4. Aim for smooth transition. Even with good planning, a lot of times the transition or migration of an employee can cause many problems. It can be litigator in nature or lead to severance of a good employee. Since its a learning curve for both the parties, use this opportunity to modify the service level agreement (SLA) for the future.

5. Measure success. Quantify and measure the benefits your company accrues for outsourcing. The foremost is the financial benefit for the company. It could also lead to notching higher profile and credibility for your company. Outsourcing means fewer defects in your work and greater speed for work completion in optimum cost and time frame.

6. Plan a clear exit strategy. Have a clear exit term integrated in your service level agreement (SLA). Clarify who owns what and how much percentage of both movable/immovable assets. Specify the compensation or severance due in case of end of partnership. This clause is very important for amicable dissolution of collaboration if the relationship ends prematurely or simply runs its course.

Off shoring a part of your business makes sound economic sense, as it can lead to substantially reduced operating costs. A clear understanding of the outsourced work will avoid many a pitfall later and yield better results.

Alexander Gordon is a writer for http://www.smallbusinessconsulting.com - The Small Business Consulting Community. Sign-up for the free success steps newsletter and get our booklet valued at $24.95 for free as a special bonus. The newsletter provides daily strategies on starting and significantly growing a business.

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