The 3 C’s of communication: communicate, communicate, and communicate

Communication is often cited as one of the biggest challenges in outsourcing. The most obvious example is the language barrier; however your offshore team may also lack understanding of the U.S. cultural, business, and R&D norms. It’s a good idea to ensure that your vendor will have employees at customer interface points that not only have a good command of English, but also a good understanding of U.S. R&D protocol and best practices.

In addition, having protocols and processes and regularly scheduled meetings are key. Communication channels must be developed within multiple levels and multiple facets: management-to-management; project-manager-to-project manager engineers-to-engineers; and accounting-to-accounting. The more ties between the organizations, the less likely loose ends will cause the project to stumble.

Uncover the hidden costs of outsourcing …

Businesses rightfully expect to realize a good return on their outsourcing investment; however they may not be prepared for some of the costs associated with outsourcing. A reputable vendor should work with you to identify and contain costs in areas such as these:

• Decision to outsource: crisis mode instead of as part of a long term business strategy • Identifying projects best suited for outsourcing • Travel costs during vendor selection process • Vendor’s level of expertise with embedded systems R&D and associated learning curve • Vendor’s understanding of U.S. project management practices • Vendor’s communication protocols and channels • Costs associated with transferring technology to outsource • Intellectual property safeguards

… and the real benefits

Lower cost is probably the first benefit that comes to mind when businesses explore outsourcing and it is a powerful short term benefit. Other tactical benefits include:

• Reduced project time • Increased productivity and efficiency • Increased technical expertise • Reduced hiring costs • Access to flexible work force

However, forward-thinking businesses realize that outsourcing offers strategic long-term benefits beyond cost savings. Outsourcing enables companies to focus on innovation and the high-value core products that increase market leadership. Eventually, businesses that embrace outsourcing as a change agent develop a new business model, a far better business model that can transform a business.

Communicate with your employees

When a company is implementing an initiative, such as outsourcing, that brings change to an organization, it’s important to communicate to employees at all levels the new process, the reasons behind it, and the benefits it will bring to the entire company. Without accurate information, rumors spread and misconceptions often lead to uncertainty, dissent, and low morale among employees. Keep in mind that familiarity leads towards favorability and let your employees know outsourcing is in the works.

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