Companies always strive to recognize as the best outsourcing partner, that they trusted. when it comes to IT out sourcing, companies pay attention to mutual respect, communication, and understanding the spirit of collaboration. but before we go to the next stage there are a variety of contractual aspects to be verified. the article below described 7 phases of IT outsourcing provider.
What is outsourcing?
Companies never revile the secret of their outsourcing definition. let me just brief about the BPO (Business Process Outsourcing) it is a process where the companies transfer their different work segments or services to the other companies, also sometimes operating activities are located in another country it far away from the company this kind of outsourcing called offshoring, if it is the nearby company is known as near-shoring, and if the company is inside the national borders than it is called as on-shoring.
Why do companies outsource?
There are many reasons behind the outsourcing of business process, and these reasons are evolved, for example, in the past the main reason behind outsourcing is to save time, reduce cost, nowadays it tends to lack qualified employees, outsourcing allows companies to acquire a specific skilled people, and also companies take advantages of outsourcing to stand in the market position.
like companies take more projects and outsource them to complete less time and overcome to the completion.
7 steps to the IT outsourcing process
Every outsourcing process starts with assigning the sourcing process. after this comes the selection of providers, then negotiation of the contract, after this monitoring and controlling, now let’s get a close look at 7 phase of the outsourcing process.
- Assignment and development of strategy:
This is the first stage of outsourcing, the buying company conducts their outsourcing sourcing needs. The buying company will receive the detail of the assignment and output target of the assignment.
- Proposal (and selection of service provider:
To get the information from the provider, the buying company will create and the at list one document to the external marketer to know who are interested to receive the contract, when the marketer receives the contract document then they will go to for their processes.
- Request for the information: this purpose is to determine which of the provider can deliver the required service at the required time, and the document includes details related to the provider’s capabilities.
- request for the proposal: it helps to in bidding and terms of the contract.
- Request for Quotes: here the companies will get insight into the cost of service.
this is the process where gather the information and evaluating information about each other from the structured relationship of both of the companies. also, understand each others concepts and goals.
both the parties formalize their business relationship in the form of a written agreement. also, the companies will negotiate some specific terms of their relationship.
Master Service Agreement: it is one of the typical contractual agreements where both the companies will contract about the company is ready to work on a project of other companies, it usually includes cover areas such as intellectual property, confidentiality term of payment, possibilities, and work standard.
- Service level agreement: it is a component of outsourcing and technology contact. it classifies the expectation, service type, and quality.
- Non-Disclosure Agreement: it is also known as Confidentiality Agreement in general it includes sensitive information, confidential information also about Clint’s information need to be protected.
after signing the contract, both the companies will transistorizing resources and responsibility to the IT provider. it represents the official launch of the project which is contracted.
6.Managing and delivery:
the stage is typically the longest process because here comes managing and maintaining a work relation through the pre-signed contract.
7.End of the contract and transfer:
This is the last stage of outsourcing, here the company that received the contract received company will return the resources and possibilities to the original company. after the first stage is completed, the outsourcing team will assign the next project to the company again. Also, sometimes, maintenance and new development of software contracts will begin with the new face of the relationship.