Rule No.1 For Offshoring Processes

Unfortunately, companies running shared services are not learning from each other. A huge food and drink company told me they have offshored processes to low-cost locations, and because they sent over bad processes, the whole thing’s exploded.

Now, without wanting to appear like I’m wagging a finger, we have talked about this before – many times. It’s shared services 101: you don’t outsource rubbish, or offshore rubbish. It will only come back and bite you…BIG TIME.

Apparently, there is a hope that by throwing a process 7000 miles away, to a largely unseen, unknown team of people that are not embedded in your process, some magic will be applied that will fix everything…somehow.

It won’t happen.

Rule Number One to offshoring or outsourcing: make sure your process is ready, robust, simple, and as automated as possible. The “fixers” are nearly always onshore, where the knowledge has sat for years. Have these fixers get your process “offshore-ready” before sending it on its 7000-mile journey.