In this age of globalization, the exponential growth of companies across the globe has changed the dynamics of outsourcing. This has necessitated a system of service delivery that can be centrally managed, and delivery to customers can be customized as per their local language and culture. As a result, the initial motto of cost reduction has given way to the realization that global delivery networks could be an instrument to achieve much more than just cost advantage. With more than one location to manage, companies strive to organize their delivery geographies as a tightly integrated network. No doubt by changing the movement of inventory from source to user through reduced cycle times, and synchronized supply chains based upon demand variability, the inventory levels can be reduced to a great extent.
This has led to the development of a collaborative approach with clients and vendors to keep the businesses running 24/7 irrespective of geographical distances and achieve the maximum from outsourcing.
There is a need to establish a robust management system to coordinate with all centers spread across the world, instill a collective identity and ultimately deliver high-quality services seamlessly based on clients’ outsourcing mandate.
Some advantages of coordinated approach with globally distributed centers are:
Capabilities development: Global delivery networks facilitate the use of regional capabilities such as local dialect to better cater to the needs of clients. It allows centralized control for proper utilization of resources, skill development, operational efficiency and a uniform operational process.
Cost advantage: Better quality service at lower costs by allowing delivery centers to locally source talent.
Improved time-to-market: A quicker turnaround time.
Lower cost for deployment of technology: There is little or no incremental investment in technology for every new center that is setup for the same kind of operations.
As a result of a clear long-term strategy for different locations, the overall management of delivery networks is better with reduced risks.
Better utilization of assets and capital investments
With a single point of contact in interaction centers, there is greater user satisfaction
Some of the key challenges for companies with centers across the world are:
Differences in culture and time zones: With hubs in various parts of the world, there may be issues of cultural differences, time zone, etc.
Ensuring data confidentiality and security: Protecting intellectual property rights and data is critical in a multi-location firm. A mechanism to ensure network security, data security and physical security needs to be developed.
Ensuring seamless service: The project status, milestones, and deliverables must be tracked and updated on a regular basis for seamless service.
The key success factors for the model are:
- A brand is stronger and globally recognized with a wide network of delivery centers
- A robust governance structure within the organization which is effective remotely
- Proactive risk mitigation tools and strategies
- Consistent and harmonized operating processes
- Strong global management and local expertise in delivery centers
In an ever-changing world, where technology is developing at a rapid speed, this approach might be a step in the right direction to match the growing needs of organizations in terms of customer satisfaction. Check it here for details on better customer service and Business Process Outsourcing Solutions.