What is Request for Proposal ?

When a business is in need of certain skills or equipments, but is not able to fulfill this need in-house, a Request for Proposal may be issued. RFP’s help businesses to convey with each other and elevate healthy competition. Depending on the number of bids a business is expecting, an RFP may be sent to only selective businesses or may be open to the public for any business to make a bid.

When is RFP required ?
A Purchasing personnel is not required to raise an RFP when they need merely pricing information or need any form of information. When a project is complex a RFP should be used and when it requires a a proposal from a supplier. A RFP takes a valuable amount of time to complete and may result in delays during the initiation phase of project. Therefore, it is sensible to use this when the advantages from obtaining supplier proposals are greater than the additional time it takes to prepare the RFP and to manage the RFP process.

Key Elements in RFP

Overview of Business Issue                                                                                                                     A detailed description of the business issue or problem is required. It should be mentioned in one or two paragraphs and it should give the suppliers a summary of the project and why it was initiated.

Products or Services Description
There should be a brief description of the products or services that are needed. In most RFPs, it is difficult to describe all the goods or services that the company needs due to the complexity. Nonetheless, a complete and in depth details of the goods or services will surely help the suppliers in developing an excellent and highly targeted proposal.

Detailed Business Requirements
Along with the product and service description a detailed business requirement should be outlined in the document, which can include support requirements, delivery guidelines, design specifications, metric for quality, etc. The motto of the detailed business requirements section is to give the suppliers a clear idea of what is needed by the company for this purchase so that the suppliers can come up with a proposal that meets the requirements.

How to Respond                                                                                                                                          It will contain special instructions on how to respond to the RFP postulation. It contains the address to send the proposal. It should include the submission format (hard copy, electronic, etc). It should also specify any additional submission requirements and can emphasize the deadline.

Conclusion                                                                                                                                                    If the RFP is used correctly, under correct circumstances then RFP is a splendid tool to select the best products or services from among several vendor offerings. As the RFP process consumes a lot of time and takes considerable amount of effort, it can provide a company with in depth knowledge of the project risk and help the company to select the best way when taking up a complex project.

Data Privacy when Outsourcing

Businesses routinely outsource everything from their information technology (IT) departments to finance, accounting and human resources. Data outsourcing has become a emerging trend that allows users and companies to give their most sensitive data to external servers that then become responsible for their storage and management.

Outsourcing concept is specially designed keeping in mind the motto to help companies to attain cost efficiencies, save time or gain a expertise in particular area.
What many companies may not comprehend completely is that when operational function is outsourced the vendor get access to confidential information and thus result to a serious threat to their network or breach in data security. When vendors provide indemnification they grant a measure of contentment, that it will be as strong as the insurance in place. The vendors may keep out from contract the significant damages and not contain vital requirements for professional liability and data protection insurance. Mostly vendors are smaller companies and may have lot of clients to serve in a particular sector. At the end if a security problem or breach by the vendor can seriously diminish the vendor’s financial condition if lawsuits form a heap and clients discontinue contracts. At the end the clients who outsource the data are responsible for the security of confidential customer and employee information. Each time the corporate confidential information gets passed on from one vendor to another, the level of control by the company goes down on how well the data is being safeguarded. Some security breaches might be a result of a loophole in operating systems or applications that is exploited by one who tries to illegally gain access to sensitive personal or corporate information. When computer code is written by application software vendors either here or in other countries, the code they have written may contain a security defect, either left intentionally or as a result of inadequate application security testing. A contract with such vendors is unlikely to pay consequential damages as a result of the security flaw in software, and it may be difficult to hold the IT vendor to account if there is a network security breach exploiting that flaw. Finally, customers cannot rely on the insurance and security provided by their vendors. Each customer should arrange for their own insurance in order to address its own direct risks, including the possibility that the
vendor may discharge the liabilities.

While outsourcing is here to stay, it is a essential point for the companies to understand that
though they have outsourced the function, the liability risks are there for the hiring
customer. The solutions include vendor management, but also required data
protection insurance to respond to the ever developing threats and increasing number of risks from a civil liability and regulatory perspective.

Procurement & Product Development

In sourcing & vendor management, procurement & innovations will become the new stake holders in the coming years. With the rapid pace with which the industry is growing, these sourcing & vendor management providers will have to come up with new technology & methodologies to deal with the changes around. The job of the business analyst is not just to be in the front end of the engagement but to also be able to handle the development process in the back end. His job is not only to interact with the client but also to understand the client needs & be able to help out the team with the product development in terms of design, functionality, partnering in technical design teams & thus in the end following the standard process to improve productivity & effectiveness. His job is not to oversee the development/back-end team but also participate in the product’s development wherever required. These are not the job descriptions of the business analysts around but in the coming years these might also be part of one’s job description. Usually these are not the responsibilities of the sourcing & vendor management professionals. Usually these are outsourced to third party providers who do the development aspect of the product. But as the demand for more product development engagements are being handled by the providers, there’s a need for more skilled resources. In a sourcing strategy terminology, the job of a sourcing professional is to help product development as well as better vendor relationships & also avoid vendor relationship disasters. So to be in an ideal scenario, the job descriptions in the near future will demand such expertise from working professionals.
In a basic product development cycle, it is important to understand the values of product development. What is being developed & How? Why it is being developed? What’s the vision of this development? What’s the target audience of this development? How will the customer & company benefit from this development? How will this process help them in the future?
In sourcing & vendor management engagements, there’s always a need for enhancements, there’s always a scope for more services from the provider. Sometimes the provider develops these enhancements in-house or sometimes develops them from third party holders. Here cost is not a case of concern but the skills & expertise matter more here. The period of traditional approach of saving costs & opting for lesser value-add has gone by. Companies look to providers who can provide you with more value-add to your business & in the process they aren’t hesitant to pay that extra buck to achieve that. In the sourcing industry, there’s a huge competition in the market in terms of price. As a provider, they should incorporate this valued partnership with product development & increase its skill sets of resources in-house. It’ll also help them in understanding the new processes & requirements that are prevalent & somewhat new in the product development rather than in IT. If you want to be successful in the industry, you have to make good use of your resources & always be thinking one step ahead of your competition.

What can be outsourced & How?

Outsourcing is now a part & parcel of today’s fast paced life. Companies usually outsource some parts of their business services which are not as important as their core services. But these also hold an important place in the functionality of their business. Most of the big, large scale companies are outsourcing their business mainly because of their flexibility, compatibility with the business needs & 24-7 support provided by these outsourcing providers. There are many areas today which can be outsourced these days. Some of the outsource responsibilities are listed as follows –

• Human resource Management
• BPO services / Customer care services
• Sales & Marketing front
• Building your site data, forms processing
• Infrastructure setup
• Data transcription

Some other areas where outsourcing is used & why it is used 0are as follows –

• Cost-effectiveness of Outsourcing

Outsourcing helps save costs and time. Since the labor is cheap in India & China, BPO companies often have much of their staff working in these areas. This is what they call offshore outsourcing. Most BPO services these days are enabled by information technology and are hence classified as ITES.

• Front Office and Back Office Outsourcing

BPO services can be classified into front office outsourcing. Also interaction with clients & meetings with them can be termed as front office outsourcing. While back office outsourcing generally includes financial-accounting management HR management, coding & development of certain process & many other functionalities which are not visible to the client

• Knowledge Process Outsourcing

KPO or knowledge process outsourcing is a major aspect of BPO and involves outsourcing tasks that specifically require expertise and factual knowledge from other sources. Usually they outsource to a provider who is a subject matter expert in that field. KPO is a wide term and can also include research and development, innovations and other tasks.

• Business Transformation Outsourcing

The main aspect i.e. the end result of the most of the business process outsourcing engagements is the business transformation outsourcing. It basically deals in making your business more efficient and effective & also gets it streamlined in a way to achieve maximum productivity & reducing costs.

And for all of the above to happen we need to know how to outsource your services. Below are some of the few high level steps through a client’s perspective wherein you can outsource.

• Is outsourcing needed?
  You need to identify the areas you need to outsource & how important is it to be outsourced. What are the advantages of the same? How are you going to plan the outsourcing? Start by making a strategy for all of the above in-house before stepping in to the market.
• Selecting a provider
  Go out there in market & select a few providers depending upon their industry experience, service offerings & business domain knowledge, customer feedbacks if any & the most important cost effectiveness. Then evaluate more on the few selected ones & finalize on a few less with whom you can negotiate terms.
• Contract Negotiation
  Once you’re done with the provider visits & you seem to be satisfied with 1 particular provider, then you may go ahead & discuss contract terms with them. Finalize on the services, functionalities, enhancements, resources & their rates that the provider is going to provide.
• Relationship Management
  Once the engagement gets underway, it’s important to effectively work & sustain the relationship in terms of the services provided. The in-house team should also take an effort to gauge & evaluate the provider’s performance which will help the business to sustain in the long run.

Managing Vendor Risks’

Identifying the risks from your vendor is the most important aspect towards a better relationship with your vendor. Also it makes you aware about the pros & cons of the vendor you’re dealing with or maybe for future accomplishments. Likewise you can take an appropriate action towards identifying & minimizing those risks & try to achieve a resolution for that. Mainly the root cause if those risks is the operational risk. The way the vendor goes about its business & the way it performs its daily duties more on the operational front. If the risks are not identified, then the risks might intensify even more then it substantially increases the cost & other ramifications which go with it. It then also depicts the unacceptable relation between the operational risk management & the business’s steady state practices. As a business analyst you need to identify such operational risk vendors & find ways to minimize those gaps which are hampering your business. You need to gather all the intel that you get about the vendor & analyze it before you take any action against it. Some of the ways in which you can do that are as follows-
Identify an appropriate vendor the first time itself – it helps you take your business in the right direction in terms of its operations. Choose an appropriate vendor for your business services & how the services will be useful in the long run.
Identify the vendor’s current offerings & future enhancements & expansion – Examine the vendor’s current services which he is providing for your business. Are they adequate enough for your business? Do they satisfy your company’s existing portfolio requirements? What are the additional things they are going to provide you with? You will also need to know if they’ll be able to handle all your future business needs. Are they flexible enough to do the necessary enhancements whenever needed?
Identify industry experience – Need to gather all the information about the vendor regarding the its industry experience, staff turnover, industry standards, their ability in solving problems, investments in new innovations & its risks & issues.
Review its performance from earlier engagements – Identify & explore the vendor’s previous engagements & gage their performance on the basis of its customer relationship. How dedicated is the vendor in the long term engagements & how the vendor is performing. Also analyze what the methods are they adopting for in-house research & development in the field & how are they minimizing risks.
Identify industry accolades & recognition – Explore vendor’s various industry engagements & how well have they performed on the industry norms. Where does the vendor stand in the user industry polls & what are the responses from the industry about the vendor. Gauge the vendor on the awards & accolades received from the industry in unbiased end-user polls.
These are just some of the higher level points which you need to be aware of. But you also need to measure, monitor & mitigate risk & look beyond the usual dependence on the operational level services. The vendor has to improve on the operational front & invest more on improving it quality performance factor. It also needs to assess the risks & execute a strategy to gage those risks on how it can be eliminated in the long run. A vendor should have its own objectives set in order to achieve its desired goal & work effectively on the operational front. There’s a huge amount of data which needs to be worked upon by the analysts in a short period of time. Lack of experience can hamper its end-result. It may also be affected due to its lack of scope, or maybe too many mangers working together or vice versa i.e. lack of managerial/leadership qualities in some areas. If the team has adequate information & is balanced out then t will automatically reflect in a strong focused & reliable project.

Vendor Management Dispute

In a world of outsourcing, you’ll find a provider every around the corner. Providers are the sole reason why the outsourcing business today has grown to such an extent today. Outsourcing helps the business in many ways right from reducing costs to achieve profits in huge margins in the business. But for such an effective & profitable venture, you need to find the appropriate provider for the right services to be outsourced. But the story doesn’t end there, once the provider is selected. Once the provider is finalized, the provider’s performance needs to be monitored closely. But in today’s times most IT companies are facing this provider management problem. They don’t really know how to handle a provider & to know how & when to rely on that provider. In usual scenarios, the companies become judgmental about its providers. In general, if they think that they don’t like a particular provider, then they assume that this provider is not performing its duties properly. But in reality, that is not the case. And similarly, if they like a particular provider they don’t care to think much about it & the performance capture is missed sometimes. But this again in reality is not true. In reality, Good providers don’t always perform in a good manner & bad providers also don’t lack in their performance as they are imagined to. But today, these IT organizations need a better way to keep a track on their providers & not to perform a check once in awhile. In most cases, an occasional report is run to check on the provider which is also not too frequent. This helps the provider to make claims in front of the top management that they are doing their job properly which has no basis to it in reality. Also in return, the in-house executives which work with the provider don’t have enough information about the provider on how he is performing. This keeps the provider safe & away from any hindrance to its work ethics. But this should not be the case. IT organizations must be more careful in handling their providers & also plan a strategy a keep track of them rather than just relying on some simple spreadsheets which do not provide the whole & exact information. So now most companies today are looking to move ahead from the spreadsheets & move onto more advanced & sophisticated approach for provider management. Many tools are available in the markets which are useful in providing you with your specific sets of modules that you need to capture. These tools can be designed according to your needs & they act like a software-as-a-service (SaaS) application. These tools are better than the normal spreadsheets that you use. Some tools are also available on SharePoint & can be accessed from anywhere & anytime remotely. You need to have that in today’s fast paced world. Accessibility from anywhere can also help in a 24/7 support from the provider as well. On the other end, there’s one more thing the IT organizations need to be aware of is that the providers are constantly gathering information about them in their repository like customer relationship management (CRM) system. Likewise there are tools available where you keep track of your providers which are known as provider relationship management tool. A provider management module is almost inversely proportional to the CRM wherein here more emphasis is given on the provider rather than the customer. Hence this forces the organizations to have a provider management module in place so that they are safe from the provider’s unconventional baseless claims. Managing providers & contractors, in today’s world is becoming more complex by the time. However you can measure all the things which are in context to the service level agreement (SLA), but there are also some cases where you need additional information to measure those metrics. So to be on the right path, you need to look back into these agreements & start adopting provider management practices wherein you can measure for yourself & get things done at the same time. There will be always a dispute about the performance of the provider if we don’t adopt the above methods or find your own for managing your provider.

Supplier Performance Management – Difficulties in data capturing

Many companies today, who measure their supplier performance information, capture the data by using various manual methods. They already have a standard process in place wherein they collect the data, analyze it & then display it onto a scorecard. In the IT industry this same supply chain performance management concept is used but here you measure the performance of the in house departments or the third party provider. In a usual working scenario, the analysts have to wait to gather for all the metrics data before analyzing & putting it in the display scorecard. In most scenarios, e-mails are sent across to the supplier to fill in the details. The supplier or the provider fills in the required details & mails it back to the analyst. In other methods, a basic template has been shared across all suppliers/providers & they are required to fill in the data & send it across to the analyst. The analyst has to go chase around every other supplier/provider who doesn’t provide the details in time. It is a tiresome & time consuming task for the analyst to follow-up with overdue suppliers/providers. The data shared by all the suppliers/providers is in the spreadsheets or is incorporated in the e-mails. The job of the analyst is to collect & collate all the data & bring it into a standardized format wherein he can do all the calculations, measurements, conversion of data & then generate reports basis the data depending on a few key performance indicators. This entire process sometimes takes a long time to gather all the data & collate all this information & churn out reports & it’s extremely frustrating.
After doing all these activities as well, the data is never hundred percent accurate. Spreadsheet collection of data usually is the common method used by companies for accumulating data. But it also has its flaws –
Information shared through spreadsheets might not be accurate & is subject to changes
Spreadsheet information may differ across between suppliers in terms of manipulating the data
Enormous effort is required to keep track & maintenance of spreadsheets
Comparison of data between different users, sites is not possible in spreadsheets
Spreadsheets aren’t dynamic & hence cannot be updated on the go
Spreadsheets may have version issues affecting them
Spreadsheets contain tons of information which is difficult to share with fellow users
Spreadsheets are independent of each supplier/provider which in turn hampers its collaboration

To overcome these problems, there are various new tools & methods available today in the market. One can automate the data collection method by using SharePoint services. Implement SharePoint services & you can access your data from anywhere across the globe. It’s more dynamic & more time consuming. It also helps user creation & you can limit the access to the data to the users depending upon their creditability. Other method is populating data in a scorecard. Scorecard is the latest approach which enables you to view the data for different aspects of your company & also allows you to compare them at the same time. It’s also user-friendly in terms of its interface & also gives you options wherein you can feed in the data & make the desired changes when needed. Identifying these manual problems, many companies are now switching their services to a web-based platform where the collection & storage of supplier/provider data have now become straightforward & stress-free.

Spend Analysis

Spend analysis is a process of collecting, classifying, and controlling spend data. Its main purpose is to reduce procurement costs, improve efficiency & monitory compliance. Spend analysis is also known sometimes as spend management. It is also useful in other business areas such as inventory management, product development, planning & budgeting. There are mainly three core focus areas of spend analysis – visibility, analysis & process. By understanding this three basic areas, the company can self achieve its goal in cost reduction, performance improvement & contract fulfillment. But to achieve this you have to follow a certain process. It basically is a five step methodology – Collect, relate, cleanse, classify, report & analyze. Companies sometimes won’t know what they don’t know. In this situations, spend analysis helps them identify those areas like –
What am I really spending? With whom am I spending it? Am I getting what’s been promised for that spending?
Generic spend analysis enables one to answer the following questions-
Who is buying? What? From whom? When? (Optionally) Where? & At what price?
Spend analysis is basically used by Chief procurement officers (CPO), Chief executive officers (CXO) & other high leadership authorities who manage the financial aspect of the company. The main business driver for any company is profitability. Companies perform spend analysis for several reasons. While procuring spend analysis, it helps improve efficiency & monitory compliance & also reducing cycle times, but at the same time it also helps identify new areas of savings which previously went unnoticed & also hold onto the past savings that the companies have already negotiated. Spend analysis evolved on these three phases – Spend Classification (focus on a few data sets-not complete, usually within the scope of procurement), Spend Visibility (organizational view across all sites, companies united via data, spend categorization vs. spend, various business sites & their data spend), Organizational Spend Management (category management capabilities, advanced capabilities, spend management & backend measurement programs, finance & upper management access). Organizations start with Spend Classification, eventually achieving Spend Visibility, before progressing to Organizational Spend Management. With better data collection methods & analyzing more data & to classify the data into proper bucket s helps in achieving the overall advanced spend analysis. Spend Analysis can be done through 3 approaches – In-House Efforts, Manual Approach, & Packaged Solutions. Spend Analysis originated because ERP or accounting system data did not adequately support sourcing.  It’s generally incomplete. ERP contains duplicate vendors. It does not contain good commodity information. It is far more static than spend data which changes all the time.
Spend Analysis is a form of Business Intelligence. It focuses on helping companies maximize the value of their currency spend. The four main components of a Spend Analysis / BI project are –
Collection, Storage, Reporting and retrieval, ongoing management.
There are some challenges in implementing spend analysis – Lack of Spend Understanding, Lack of Resources, Required Analytics Capabilities, IT Opposition.
Spend management tools basically automated spend analysis software can be a valuable tool for large, global, diversified enterprises, and a useful tool for many others companies. One of the available tools in the market is the IBM® Emptoris® Spend Analysis tool which once used delivers immediate impact to your business. It has its own modules on which the entire spend analysis is done, right from gaining visibility to analyzing data to identifying & reducing risk to saving costs & improving compliance abilities.

The Evolution of IT

In today’s world technology is growing at a rapid pace. Be it from using the first mainframe when deployed to the rapid pace and scope in which the changes are taking place in the IT world.

Change has been the common & constant factor in data infrastructure. From the world of wired connections in a single room to the today’s world of virtualization, things have changed in a wider scope of hope & can be delivered anywhere today. The reason behind these rapid changes is the increasingly sophisticated demands of the customer. A few years back the users were more content with the basic data environment for number crunching & data communications. But today the demands are high from the customer which in turn makes the IT process more highly-collaborative. They create a work relationship with the individuals depending on their experience to the work environment which can be defined by the level of access to the IT resources based on the resource. And in the entire setup process if you fail to deliver on the customer needs, they will go ahead & get what they desire on their own or may find another provider who is willing.

In today’s world Cloud computing & social networkings have become the two key drivers of changes in the current IT industry. These rapid changes in the IT enterprise field are forcing the IT executives to come up with a strategy and a way to execute them so that they can be more agile & flexible in their infrastructure to provide a better & efficient way to meet these IT changes .In yester years change was not the norm but exception was. But in today’s time, rapid change is the norm & IT must evolve with this change in process, people & technology. So to cope up with the rapid changing environment, we have to adapt to these changes quickly in new systems & architecture. But while doing this we also need not go too rapidly with building them before realizing & utilizing their full value and not letting them to rot in an obsolete state.

New technologies such as cloud computing, WAN optimization, storage area network (SAN), SSDs and high-speed, unified networking & other technologies are ruling in the IT market these days. Cloud computing is basically the use of resources, both hardware & software, that can be delivered over a network. Cloud computing services are divided in 3 categories Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS) & Software-as-a-Service (SaaS). WAN optimization deals with the transfer of data over a wider network in a more efficient & quicker way. Some of the WAN optimization techniques are Deduplication, compression, Latency optimization, etc. Storage area network (SAN) is a high-speed network that provides access to different kinds of data storage devices with associated data servers. SAN has its own network of storage devices that are generally not accessible through the local area network by other devices. But SAN has its limitations when it comes to cloud computing & storing big data. SSD’s (Solid state drives) are basically an integrated storage device that store data on interconnected flash memory chips that retain the data even when there’s no power present. SSD’s are more reliable and less susceptible to physical shock. They are more efficient than HDD’s in data processing & therefore are more expensive that HDD’s.

So deploy such technologies in any organization, your IT needs to have these four design fundamental ideals in place – Simplification, Standardization, Modularity & Integration. In a world of increased collaboration and data flexibility, IT is evolving to a highly dynamic and imminently scalable infrastructure that needs to be sustained over a period of time in this rapid change scenario.

There are only a few organizations that are willing to adopt and undergo such radical changes in their IT businesses. While these organizations rise up with these changes, they should let go off their traditional enterprise infrastructure before weighing the costs and benefits of the cloud vs. traditional facilities. But when it comes to setting up a new system for cloud-computing, it’s hard to argue when it comes to low cost, easily deployable, less management & low maintenance.

Outsourcing – Pros & Cons

In today’s fast paced world, outsourcing has become a common norm. Every second company outsources some of its services. Outsourcing is usually done to cut down on costs. Many businesses today are trying to cut down on their costs & improvise on their business methods. It’s the same norm when it comes to outsourcing. Outsourcing is usually preferred by companies for cost saving & use fewer employees as possible. But outsourcing decision should not be taken lightly. While outsourcing first you should determine whether outsourcing is useful for your business. The term outsourcing is the recent phenomenon in the market that has drawn attention but it has been there since the work specialization existed. Companies’ concentrate more on their core businesses first rather than go looking for the services for their non-core business functions. Outsourcing is emerging rapidly in terms of various service providers from different countries offering their services in foreign land.
Outsourcing is not like the best & efficient option for your business. Before you outsource, you need to know about its pros & cons to deal with. The main advantage of business outsourcing is cost saving. The cost of an outside (off-shore) employee is always lesser in cost than the in-house (onsite) employee. And this is the most important & primary reason for companies to outsource. Other advantages are quality of service that you get from the third-party provider who have specialized resources in each filed & industry experience. Service delivery is quite efficient & on time compared to in-house employees. Also the other advantage of outsourcing is the contract that you sign. Due to contractual obligation, the liability of a service provider is higher than a in-house employee which in turn makes working safer with a third-party service provider. Also when you outsource your non-core business, recruiting and hiring staff for such non-core function is also the task of the provider. The company is free from that headache & can concentrate more on its core business. The other advantages are capacity backfilling & risk mitigation. The provider is contractual binded in terms of providing additional support if needed. There are times when the outsource service may require additional effort to do the job in a given set of time. That time the provider has to deal with the capacity backfilling. Also when some of your non-core functions being affected but they are critically important for your businesses then to get them resolved with minimum effort & time, the experience & specialized skill of the provider comes into picture.
These were some of the advantages of the outsourcing. But there are also some disadvantages of it. The first main disadvantage is the mode of communication – linguistic problems. When you outsource your business to a foreign country, then the provider should be aware of the home language of the business. There are many reasons behind it like accent issues, word & phrase usage problems & also other communications modes like emails & handling calls. The other disadvantage is the lack of knowledge of the provider. An in-house employee will always be more aware of the business needs rather than an outside employee. This might result into the effectiveness & deliverability of the services in terms of quality & time. Other disadvantages are the lack of employment in your own nation. When you outsource to a foreign nation, all foreign employees are being employed & all this results in the reduction of employment avenues of that nation. Staff turnover is also one of the disadvantages. Whenever there’s attrition for the service provider, the quality of the provider will be hampered which in turn will affect the business. So how to handle all these negative points & what are the methods to cope with these?
For the linguistic problems, many providers urge their employees to learn a foreign languages & same is the case with the businesses. As far as the company knowledge goes, the provider has to have a strong knowledge & experience of that domain area & also a structured knowledge transfer methods wherein the employees change. As far as the reduction in employment goes, it’s just one the negative impacts. But it also has a bright side to it. Usually business profits hugely from outsourcing & that profitability is then utilized back into the economy thus nullifying the negative aspect of outsourcing.