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Outcome-based Outsourcing: Providersí New Strategy

By Yentyl Robles, Hubport Interactive
September 16, 2009
Tough competition has been constantly stirring the outsourcing world and with top outsourcing destinations such as India, Philippines, China and others flocking the market, these countries have constantly been offering services trying to get an edge against the others. Thus, competition is deemed to be tighter.

With the economic recession plaguing almost every country in the world, it is but natural for businesses to direct their companies to cheaper yet efficient service providers. As a result, many of these providers indeed offer cheap services but the competition can only go as far. Many sprouting outsourcing companies are threatening to offer even cheaper and more efficient services.

Now, service providers aim on offering more competitive and innovative service. So, this means, more than just manning helpdesks or encoding data. Providers are finding new ways that will entice businesses not only with low cost but also with more desirable result and efficiency as well.

Outcome-based outsourcing is a new strategy that will allow service providers to partner with businesses not only in customer support services or quality assurance but in achieving business goals as well. For every revenue that is generated for the business, the service provider will have its share of the profit and for every untimely delivery on the part of the latter, shares will be reduced.

This strategy isnít as widespread as some businesses are just yet and people are still quite skeptical on the methodology concerning metrics, tracking, and other processes in determining the targeted outcome that will allow for bigger share in profits.

Though vagueness and complexity still surround this idea, plenty of service providers and businesses do agree that this can be a promising new trend in outsourcing.

With the great competition out there for outsourcing providers, the perfection of outcome-based outsourcing will definitely attract more clients. If a clearer and more attractive compensation can be devised for both parties involved, it will, without a doubt allow for better revenue and forge solid partnership between providers and clients as well.


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