Business Plan For Outsourcing

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Business Plan InstaPhone (Pvt.) Ltd. InstaPhone (Pvt.) Ltd. 89-I, Jail Road Lahore, Pakistan

Submitted By: SYED TAYYAB HAIDER JAFRI

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I.

Table of Contents

I.Table of Contents............................................................................................................3 II.Importance and benefits of BPO.................................................................................5 III.Operational Plan..........................................................................................................9 IV.Risk Management ......................................................................................................13 V.Cost Analysis................................................................................................................17 VI.The infrastructure......................................................................................................21 VII.Commercial Strategy...............................................................................................23 VIII.Case study................................................................................................................25

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II.

Importance and benefits of BPO

Business Process Outsourcing is about optimizing business performance to attain value creation. There has been a tremendous upsurge in BPO and outsourcing industry in many developing countries like Pakistan because of their (BPO) expertise in reducing costs while increasing service quality. These elements serve the core role in increasing the importance of business process outsourcing because it also helps companies to focus on core areas. Companies generally outsource processes to reallocate accountability and control costs. Thus the management is in a better position to focus on core areas, and not keep itself engrossed in other areas. Outsourcing also helps companies to avoid capital expenditures (future investments), which is in particular important in non-core areas that may need new systems and up gradation. By and large, companies only want to spend money on core areas. Reduction in costs is another BPO benefit. BPO provides quantifiable benefits through improved efficiencies, lower overhead, reduced payroll and benefit expenses, and fewer capital investments. Other BPO benefits include assurance of best practices, skills, and technology. It is important to note that BPO provides access to proprietary workflow systems, process reengineering skills, and innovative staffing and delivery models, coupled with world-class technology delivered by experts.1 For the big picture, in call center environment, specifically Instaphone Pvt. Ltd., following things can be considered on Ops side:



On-time Environment



Concurrency



Reliability



Reactiveness



Dynamic Resource Allocation



Distributed Environment

While on the other hand following things are proposed to be outsourced 1

http://www.indobase.com/bpo/bpo-benefits/index.html

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Performance analysis



Accounts



Human resource management



Management process formulization



Field expertise



Catering to the changing customer demands

The elements are much alike yet they provide the executives with a lot of time to focus on new grounds for the organization to generate more and valuable revenue. The elements to be outsourced can be trimmed down and expanded according to the organization needs and requirements, from a single process to the complete business process. Pertaining to the organizational infrastructure and organizational demands these elements have been observed lucrative to be outsourced. Ranging from monetary benefits, increased revenue to increased employee performance and service quality, BPO can provide an organization with opportunities to develop and excel in the industry, yet it has its own constraints and restrictions. Even though several other reasons can be listed up in favor of outsourcing, one must not overlook the disadvantages of it. By outsourcing a business process, we tend to lose the managerial control. This happens because it is harder to manage the outsourcing service provider as compare to managing one's own employees. Also because we generally tend to skip (or miss to calculate) the potential hidden costs of outsourcing which includes legal costs of putting together a contract between companies and time spent on coordinating the contracts, we feel that outsourcing reduces the overall expenditure of a business process, one of the major reasons why a company goes for outsourcing. This hidden and missed out costs of outsourcing is hard to predict causing overall costs to be underestimated. Another disadvantage is that outsourcing can also prove to be a threat to the security and confidentiality of issues of a company. If your company is outsourcing business process such as payroll, confidential information such as salary will be known to the outsourcing service provider.

Page 7 of 26 Therefore one must be very careful in choosing which business process to outsource and which one not. Outsourcing may also result into the possible loss of flexibility in reacting to changing business conditions, lack of internal and external customer focus and sharing cost savings. Loss of internally generated talent is yet another problem associated with the outsourcing as it may hamper the growth of an employee by depriving him from the experience he would have gained by handling the business issue himself then by passing it over to some other external party.2 All in all, following are the risk factors involved in outsourcing business process. 

Outsourcing cost



Time factor



Administrative control



Confidentiality and security of organizational issues



Loss in organizational customer needs



Loss of in-house talent development



Immense change in organizational culture

flexibility

to

react

to

changing

With all these pros and cons in observation, outsourcing can still not be neglected as a force for the good of the organization. These may seem to be a threat to the organization but it can also be converted into opportunities and strengths.

2

http://www.softwareprojects.org/disadvantages-outsourcing.htm

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III.

Operational Plan

Plan and Specify First For the best outsourcing outcome the BDO must come up with the prospects its respective organization is looking for. The BPO will not be able to determine the targets and scope of work at hand until and unless they are communicated the main stream targets that an organization is considering. Following are the credentials that a BDO must come up with in order to present the mission of achieving its targets with the targeted BPO. • • • •

A scope of work Level of effort projections Time frames Performance indicators that will be used to monitor the project.

In customer services projects, project milestones are popular because they specify both deliverables and the time frames those deliverables are due. However, it often requires some extra amount of investment in feasibility and scoping study to come up with a full scope of work, milestones, and a budget for a major customer service project. The benefits of conducting feasibility studies in customer services are: •

• •

Service level requirements man power specifications are clarified and agreed upon before development work is undertaken; Features can be reconciled with available budgets; The project can be canceled at an early stage if it is found to not be feasible to undertake as intended (Probation phase of business process outsourcing).

Failed customer services projects are often the result of specifications being neglected before full business process outsourcing of customer services project is undertaken. Customer service project outsourcing specifications do not just implement themselves. There needs to be an outsourcing plan, detailing how the project will be conducted and governed. Placing requirements and plans under

Page 10 of 26 change control prevents a project from growing out of control and exceeding its budget and time frames.

Examine Your Workflow Procedures For the first step, standard operating procedures are a must to be developed to guide its in-house administrative call center employees.

Core Strategies for Success Do not expect immediate financial savings from outsourcing customer service and technical support work. In most cases, as observed, organization will be supporting duplicate efforts until the transition is complete. When doing outsourcing, recognize that your BPO facility and its staff might not have much subject matter expertise or familiarity with how your individual business works. Organization will need to establish a mentoring relationship with the BPO. Organization must not let this relationship become acrimonious, since it is to be expected that offshore staff will need time to become proficient in their client's operations. Expect to have to be patient, expect initial mistakes, and be ready to correct them in a way that does not poison the working relationships that you have with your outsourcing contractor. Don't leave your people skills or professionalism behind when you outsource business process. Many BPOs have hot-call transferring capabilities, whereby calls that cannot be resolved with BPO service can be transferred back to the client organization.

Invoicing and Payment Payment and invoicing for customer service programs can vary according to the size of the service provider. Normally, most of the call centers organizations work under advance payment arrangements, working with a decided time frame advance payment. At the mid-sized and smaller outsourced call centers, payment terms might not require as much of an advance payment as the large outsourced centers require. Billing is usually done weekly with payment due after one week. Rates are based on production (login) time, defined as the time that a

Page 11 of 26 customer service agent actually spends logged into a phone system and prepared to take calls. Each payroll hour generally provides between 42 and 45 minutes of production time at most call centers. Clients have an option simply to go for least cost in choosing outsourcing facilities. By starving an outsourcer, it is more likely that the program will be terminated by the BPO service provider prematurely, or that they will hire poor quality staff, or that there will be excessive staff turnover.

Mistakes To Avoid The major mistake in outsourcing customer service work is to attempt to scale up too fast. If you do not start small, with five to six people (who can later serve as trainers or team leaders), then you will find that after three to four months (if not sooner) you will be back at that staffing level once an outsourcing program has run into trouble. Some organizations might initially recognize the need to scale up from a low staffing level, but when the time comes for implementation, they feel pressured into adopting untenable ramp up strategies. To reduce risks from internal staff turnover, contract provisions can be used to tie staff to specific projects. This is particularly important for supervisors and team leaders, with whom clients often invest substantial training. It can be specified that replacements for supervisors come from within the original team that was trained by the organization. Another mistake that organizations can make in outsourcing customer service work to a BPO is to not budget for adequate training time.

Maintain Momentum There are three things that are needed from a BPO to keep an outsourcing arrangement dynamic and effective, particularly for customer service programs: 1. Constant communication -- BPO need to call the client every morning, even if there is nothing new to report. 2. Reporting -- especially with metrics that scale down to individual agent performance so that you can see if one agent is performing really well in accordance to the others, for example. When you see unusual metrics, investigate. 3. Also have the BPO develop and implement an action plan when things go awry.

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IV.

Risk Management

When firms outsource a business process, they also tend to outsource the risk associated with the execution and management of the process. Not surprisingly, these relationships are marked by high levels of dissatisfaction. The risks are firm- or relationship-level risks. No macro risks such as political or economic risks are outlined here. The risks are broadly classified as project planning and management risks, supplier selection risks, contracting and negotiation risks, transition and start-up risks, and contract and supplier performance risks, a firm would be considering while outsourcing.

With any outsourcing arrangement, you have less control than you would if everything were housed within your organization and run by your employees. In fact, the loss of control is one of the most frequently cited reasons not to outsource, and, coupled with the flexibility of being able to change things and make them exactly how you want them, is certainly a compelling argument to keep technology and skills in-house. For most contact centers, however, the biggest risk with "loss of control" isn't actually in the functionality of the service. Many outsourcers can provide as much flexibility as your own staff. In addition, the overhead and extra delay involved in making changes can actually be a good thing. Take a look at an area you are changing frequently -- routing, reporting, and recorded announcements, whatever. Are you making changes in this area because you need to, or because you can? Frequent changes and creeping complexity can be detrimental; take this into account when discussing change management with your outsourcing vendor. The larger risk of "loss of control" actually has to do with service quality, such as service performance, uptime, correctness, etc. You are dependent upon your outsourcer to manage this well. Many times, an outsourcer can provide superior service on these counts. The trouble happens when they can't, or don't.

The value and risk of outsourcing Clearly, having specialists provide the highly technical services promised by technology outsourcing can offer an enterprise real cost savings. The ability of call centers to gain access to the newest technology without overcoming a great learning curve is just as powerful. The speech self-service technology described in the last column of this series (Speech Self Service: A New

Page 14 of 26 Technology Trend for the Call Center3) is one such an example. It is possible

to outsource the design, implementation, operations and management of these applications entirely. But, it is important to be cautious. Along with the benefits of technology outsourcing comes a loss of control -- and these are technologies upon which your customers' interactions with your organization may rest entirely. As you consider options for outsourcing, in sourcing and co-sourcing, think about these "top 10 gotchas" that had been seen over the last years. 1. Latency matters. Applications built and tested at an enterprise and then shipped as VXML to a hosting service rarely run with the same performance. For example, a recent test of the same application, local versus hosted, showed almost one second of additional latency and substantially less capacity per platform in the hosted configuration.

2. SLA (Service Level Agreement) monitoring. Most outsourcers provide reporting as part of their services so that you can tell how well things are running. But this may be a case of the fox watching the hen house. In addition to reviewing the outsourcer's own information, you should require a way to check performance against an SLA.

3. The form of the SLA. Understanding what matters to your customer and how it relates to the service level that you receive from your outsourcer can be challenging, and negotiating an SLA can be even more complicated. As a result, many existing SLAs are very weak. It may be more important to have a strong relationship with your outsourcer than it is to have a strong contract, but operating without a meaningful SLA and regular measurements can lead to problems. Consider this: would you work without a meaningful SLA if you were outsourcing your staff? So why would you work without an SLA when you outsource your technology?

4. Carriers in the middle. Phone calls in hosted scenarios often traverse three or four networks, from the caller to the hosted IVR to the agent, both in house and off-shore. A failure or issue in any of these links can cause quality problems in the calls. And when things start to go wrong, a "finger-pointing" party often ensues. It's critical to 3

http://www.callcentermagazine.com/showArticle.jhtml?articleID=183700472

Page 15 of 26 understand all the links in the chain and to be sure that each party in the process has a view of the whole picture. Most providers want to deliver great end-to-end service, but they often only control a piece of the puzzle. 5. Start-up troubles. Starting a new service is complicated, and you rarely know how well everything will work together until the service is actually running. At this point, it is much harder to create a "lab" to do a performance evaluation, and it is more important to undertake effective testing across specific windows that are agreed upon with the providers. There is no substitute for system testing and too many deployments have suffered from "infant" mortality.

6. Back-end system performance. The most common latency issues and system failures in self-service are not in the telecom equipment itself; they're in the IT systems behind the equipment: the data base, corporate intranet, application servers, etc. These may be outsourced at a completely different facility with a different outsourcer than the one hosting your self service and ACD, for example. Understanding this performance relationship is the key to delivering a good customer experience.

7. Failover mechanisms. One of the great advantages of hosting call center technology is that business continuity is built in. Proper disaster planning, however, requires collaboration between the enterprise and the outsourcer and is not something you can ignore. Too often, failover mechanisms don't work properly and the coordination of multiple outsourcers in an emergency can be horrendous.

8. Start of day. Machines are supposed to work the same way all the time, but we've all experienced issues that are based upon the time of day. The most common of these are start-of-shift issues as new grammars are cached or moved from one machine to another. Some callers can hear very long delays of up to 30 seconds when this occurs, and it's not something you can identify without testing this scenario in advance.

Page 16 of 26 9. Security. You have worked hard to negotiate outsourcing that promises to keep your customer and company data secure. It's not possible to avoid this sensitive information traversing the outsourcer's facility; in some cases, clients have made special arrangements to ensure that it's not stored anywhere. But security is a dynamic, neverending battle. It's not uncommon to discover security vulnerabilities in services that have been running for more than a year. Typically, these have crept in over time, so it's important to inspect the call flows, information flows, and data security measures in place on a regular basis.

10. Changes. Your routing and self-service configurations change much more frequently than you might think, and change management involves clean communication and coordination with outsourcing providers. Most providers have a great system for this, but you should be sure that this is the case when you make your selection. These issues can make the concept of technology outsourcing intimidating, but in fact, call center technology outsourcing can be a very viable option for most call centers. For it to succeed, however, you should be aware of these pitfalls and bring them up in your consideration. An intriguing model is one in which the outsourcer and the enterprise keep parallel systems, with the outsourcer handling high-load or routing transactions, just as you might do for highly skilled or less skilled agents. This might seem like double the work, but it will keep you aware of how these systems are working.

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V.

Cost Analysis

Cost Analysis Before launching a business, the organization must establish a budget, identifying the various costs the company will have to take into account. There are two parts to the budget: a start-up budget, which gives the breakdown of the one-time costs necessary to set up a recycling centre, and the operating budget, which details the on-going costs of running the centre. This analysis will also enable the organization to plan the activity and to establish the prices, in order to be profitable and able to sustain the centre over the long term.

Start-up budget Investments The start-up budget comprises all costs necessary to launch an activity. It includes spending related to capital and to the creation of the legal structure, but also all the expenses and investments essential for the opening of the premises, i.e. renovations, purchase of equipment and furniture, and guarantees paid to phone and electricity providers.

Contributions in cash and in kind The organization and its partners have several possible ways to contribute to the capital : they may put money into the business thanks to personal loans, microloans, aids and grants. These are contributions in cash. The organization and its partners may also provide equipment: vehicles, materials, furniture, premises, etc. These are contributions in kind.

Operating budget The operating budget includes all recurring expenses, such as rent, salaries, insurance and supplies. For instance we can take the example of a pilot project of creating a recycling site, the scenario is different from that of the call center industry but the example is to illustrate the start-up analysis of the business. Henceforth, the budget can distributed as presented below.

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Running costs Running costs comprise fixed expenses (administration costs) and variable expenses (operating costs). Generally, administration costs account for 13% to 15% of the global expenses. They include renting costs, standing charges, telecommunication costs, and a part of the salaries devoted to the management of the company. Operating expenses include maintenance costs, heating and electricity charges, the amortization of equipment, etc. To estimate these costs, the organization can try to find out what another business or organization of a similar size pays. It is best to over-estimate these costs at first.

Labor force and handling costs Adding up all the employees’ monthly salaries is enough to know the global amount of labor costs. The hardest task for the organization is to evaluate the number of employees he needs, according to the production volume of the company. For instance, the organization has to estimate the number of computers a technician can dismantle in one hour. This ratio goes from 4 computers an hour to more than 20, if the technician is competent and is used to working on the same type of equipment.

Treatment costs Usually, refurbishing and dismantling operations generate income when the equipment and subsets are resold. However, some components (such as faulty CRT screens) and polluting residue represent an added cost, since in most cases the enterprise will have to pay a service provider to take care of the collection of this material. The organization must find the most profitable and environmentally sound way to get rid of this material, in order to reduce the company’s expenses. Before the collecting stage, the organization should negotiate the logistical and financial management of the expenses devoted to the final treatment of waste with the client.

Income Before starting up, the organization should be able to secure 6 months of supply. This will ensure the durability of the future enterprise. Ensuring supply is more important than all the various contributions from the organization or its associates.

Human Resources Management

Page 19 of 26 The success of a computer recycling business depends on good human resources management, as well as on the professional skills of its employees. However, in some countries, it may be difficult to find people qualified to meet the specific requirements of a recycling activity. Therefore, the organization will have to see to it that the employees are carefully recruited, properly supervised and, above all, well trained in order to acquire new knowledge and technical skills. At first, the organization will also have to ensure that the staff has complementary skills and a good sense of responsibility.

Business and administrative staff Chief Partner As the executive director, the chief partner is the main manager of the enterprise. He guarantees the smooth running of the company and is responsible for its development and global strategy. He will have to prepare the business plan, define the positioning on the market, create partnerships and represent the enterprise. Therefore, he must be specially versatile and master all management techniques extremely well, as well as the technical aspects of his job. The organization will greatly benefit from being assisted by a business manager and a supply manager to ensure the expansion of his activity.

Technical staff The number of technicians working on site varies greatly. It mainly depends on the quantity of equipment to be processed, on the employees’ productivity. Although there are several specific parts to play in, many employees are versatile and their training enable them to change posts to meet specific needs.

Team management Welcoming new employees Each new employee must be able to benefit from a structured orientation programme. This programme consists of a presentation of the team and a basic description of the employee’s future missions. The organization may also welcome the employee to discuss targets and schedules. Once the new employee is working, he may be given a manual to help him understand and perform his tasks. Such a manual may consist of a description of the

Page 20 of 26 assigned tasks, some tips to perform them and a description of the tools to be used.

Training To improve the competence of new employees, the enterprise may set up a training programme. The first aim of this programme is to enable, and encourage, the sharing of experience, through demonstrations and exercises involving both newcomers and more experienced employees. This programme must also define a progression plan for the new employee to follow. It will help him to estimate his level and his evolution. For example, this plan can at first appoint the employee to simple cleaning tasks, then to testing operations, and finally to computer refurbishment operations.

Motivating the team To motivate the team and improve productivity, the organization may resort to the attribution of realistic work objectives and to the posting of results. The enterprise can post the quantities of equipment treated and to be treated weekly, monthly or quarterly.

Facilities and Utilities The location The choice of location of the recycling site must be one of the organization’s main concerns. It should also be relatively close to urban and commercial zones.

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VI.

The infrastructure

The call centre must be divided into several areas, separating activities from one another. The dimensions required for various areas may vary according to the requirement and business activities.

Utilities Electricity A reliable mains electrical supply is essential to the operation of call center. Without a reliable source of power, it is impossible to use a test bed. Therefore, priority in operating expenses must be given to the security of the power supply. Call centre must be equipped with an Uninterruptible Power Supply (UPS), more commonly called inverters. This device provides a stable power supply to electronic or electric components. The minimum requirement for an inverter is 650mWa. In most extreme cases, the call center should resort to the installation of its own generator. The power cables coming from the electric meter must be of sufficient size to support the total power of the workstations in test (power of the central processing unit + power of the monitor) which are connected simultaneously to the cable. There should be an upstream cutout or a circuit breaker for each power cable in the electric meter. To ensure the safety of individuals, it is preferable to have ground fault circuit interrupters. Each test bed should be equipped with a 10 to 15 amp fuse. A professional call center must have electrical emergency stop buttons at every workstation.

Telecommunications The centre must be equipped with effective means of communication (phone, fax, Internet connection) to be able to communicate efficiently with customers, suppliers and subsidiaries. Low-bandwidth Internet connectivity may not be sufficient to run an active centre. It is recommended to have a high-speed Internet connection. In areas not covered by cable or ADSL, there is the possibility to establish a high-speed Internet connection via satellite, which guarantees a rapid, reliable and permanent Internet access. This type of connection requires specific outdoor equipment (satellite dish, cable, etc.) as well as a computer (with DVB-s card). There are several types of subscription offers for satellite connection, providing different bandwidths. The transmission/ reception material required is generally specific to the provider. Advantages for each

Page 22 of 26 type of subscription must be carefully considered, in order to select the best offer with the best bandwidth.

Tools To perform sorting and dismantling operations, several pieces of equipment are required, all of which need to be purchased before launching the enterprise. The most important are workbenches, shelves, small tools, containers (boxes, roller bins, etc.) and a set of scales (mechanical or electronic).

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VII. Commercial Strategy The administrative body must pay particular attention to the company’s positioning on the market (in terms of location, activities and products), to optimize his pricing policy and to improve relations with his clients and partners. A study of demand allows the organization to get a better appreciation of the market: he is then able to analyse and remove the obstacles to computer purchase (such as price or lack of easy terms). Feasibility and market studies also enable the organization to identify his potential clients and to learn about the means to be implemented in order to meet demand. Once the market has been fragmented and priority targets have been determined, the organization must define a communication plan, to make his offer known and find clients.

Marketing and communication Beforehand, a market analysis should be conducted in order to categorize customers, according to their purchasing power. The organization must always look for creative ways to promote the call centre. Marketing plans should mainly focus on field missions, e.g. prospecting, tracking quotes, follow-up and development of customer loyalty. Even in a small organization, communication issues are important. The organization must promote his products and has to maintain and develop his reputation. In order to get good exposure, the administrative body needs to use various types of media. To communicate the administrative body can resort to press conferences, advertising, television, telemarketing, emails, and customer care centers etc.

Sanction Plans The commercial strategy must be written in a concise way. The organization must summarize the main procedures of the company’s policy. The written form meets two needs: it clarifies ideas and synthesizes key elements which constitute the company’s competitive advantage. This is the reference document the organization must align his strategy on. It enables decisions to be explained and to make them understood and accepted. The administrative body must prepare in detail the action plans he is going to set up to achieve the goals set out in the business strategy. The next phase consists in describing in practical terms the different stages and means implemented to achieve these goals. For each step, the following aspects are detailed and planned : actions, costs, timing and human resources. These action plans should be aligned with the business and the objectives set. Actions are prioritized according to needs. Depending on the

Page 24 of 26 situation, their implementation may be simultaneous or sequential. Every action must be validated before moving to the next.

Partnerships Before making his business known, it is in the administrative body’s interest to get in touch with networks of businesses and institutions involved in computer science and which are committed to the reduction of the digital gap. By establishing partnerships with the key members of these networks, the organization will secure regular clients for the company and will extend its scope of action. Partners may contribute to the communication strategy: they can spread the word about the company and act as free advertisements. By getting in touch with governmental authorities, the organization may also gain access to certain information (e.g. about the expansion of the power system or the launching of a plan to finance computer equipment in schools) which will enable the company to enter new markets. In the same manner, a partnership with an Internet access provider may be beneficial. Finally, the organization may try to create partnerships with businesses which could sell his products on other markets.

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VIII. Case study

With respect to the above mentioned details for setting up a BPO, we here have the scenario of Insta (Pvt.) ltd, the case under observation will be as follows:

With the current setup in hand, there is availability of resources in Insta; there is a running setup with a fair amount of inventory on hand that includes: Premises with its basic requirement of seating arrangements, terminals to work on, manpower availability to a certain level, administrative body managing the workforce and miscellaneous obligatory elements to keep the system running smoothly. With Insta moving into new market of providing BPO services to organizations and searching for new clients, these available resources do prove to be viable for the potentially growing Insta (Pvt.) ltd. BPO industry is still on its way to maturing in Pakistan markets which makes it a good opportunity to step into. With its historical background, the administrative body does have a relative experience of providing services to its client. What should concern us are the SOPs (standard Operating Procedures) that need to be developed within this firm before it steps into the business flow. If we examine Insta’s situation more closely with reference to importance and benefits of BPO, Insta can prove to be a perfect fit in this industry with its current resources available at hand. As for the operational feasibilities, again, developing SOPs will help it a lot in every imaginable step, but it should also be noticed that these SOPs will vary from time to time depending on the case. Administrative body should, tough, carry out the formulation of its core strategies for success, scope of primary work, targets for future, and strategies to maintain its momentum for success in the long run. The next big thing to do while outsourcing is to manage your resources which include managing workforce, managing available resources, managing communication channels, and managing every core element in the work procedure (all these elements had been discussed prior in this document).

Page 26 of 26 Lastly, not the least is the financial aspect, the biggest cost in the occurrence of a new setup business is the initial inventory and premises cost. Fortunately for Insta, all resources are already available to work with. But there is a cost that will occur and that is the running cost of this business. These costs accumulate in the following fashion: • • • • • • •

Labor force and service cost Maintenance cost Safety budget Human resource management Technical staff Training Keeping the team motivated

Apart from this, infrastructure may also need to be taken care of, • • •

Electricity Telecommunication Tools to carry out standard procedures

As mentioned all these aspects will vary from client to client, depending on the requirements of business or its client.

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