1.

Analyze your business requirements

define the business and technical requirements that the outsourced service /product would require.
Finally, decide on the requirements that the prospective Indian vendor should have. Ask your
management team to analyze all the requirements and create a final document stating your business
and vendor requirements.

2. Search for a vendor

compile a list of possible Indian vendors,

3. Write a Request for Proposal (RFP) & Request for Quotation (RFQ)

write a Request for Quotation or a Request for Proposal. The Request for Proposal should contain
sections, such as, submission details, an introduction and executive summary, an overview and
background of the business, detailed specifications, assumptions and constraints, terms and
conditions and selection criteria.

4. Evaluating the proposal & selecting the vendor

5. Creating a contract negotiation strategy

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To enable the success of the outsourcing arrangement, a few core functional areas need constant
monitoring by both the client and the service provider. Neglecting or overlooking any one area can
often lead to the failure of the outsourcing arrangement.

These critical areas include:

Cost Management

Cost is often one the most important reasons cited for choosing outsourcing, as outsourcing
enables both the client and the service provider to earn a considerable profit. It is therefore
necessary that both parties analyze the scope and pricing of the outsourced project before they
sign a contract.

Communication Management

Establishing the right communication channels is an absolute necessity for any outsourcing
venture to succeed. Communication strategy should be given due importance right from the
 negotiation stage, with importance being placed on a foolproof communications system,
consistent contact between client and service provider, regular feedback, clarity in instructions
and the development of a reliable system for clarification of any points in question.

Performance Management

Performance management in outsourcing includes both project quality and adherence to the
timeframe mentioned in the contract. The client must conduct regular checks to establish
whether the quality of work conforms to previously established parameters. The client must also
monitor adherence to deadlines and demand accountability reports in case of non-compliance.

Risk Management

As with any other aspect of a business relationship, risk management is an important factor to
be considered. It is always better that both sides of the outsourcing process analyze and study
the various risks involved and have a suitable back-up plan in place before the contract is
signed. Doing this will substantially lower any risks involved.

Crisis Management

A crisis can strike either party of the outsourcing venture, and both sides must be suitably
prepared for continuity of business. By choosing a well-established outsourcing provider,
however, crisis management can be substantially reduced.

Project Charter
Well before you kick-off any project, there should be well defined answers to
following questions.
- Why are we doing this project and NOT other projects?
- What are the objectives for this project?
- Who is responsible and for what?
- Who are stakeholders of this project?
- What is the scope of this project?
- What are assumptions and limitations for this project?
The formally documented answers to above question is called Project
Charter. It is a formal authorization to start working on a given
project. Project charter is not created by project manager rather it is
published by project sponsor to authorize, empower project manager(s) to
start working on the project, empower project manager to acquire required
resources to carry out project activities.
 The project charter is expected to have reasonable information defining
following points:
Business justification or need to deliver the project and how it fits with
organizations overall business strategy
Goals, objectives and evaluation parameters that project must meet in
order to consider project delivery as successful
Different stakeholders involved (internal, external), brief of
stakeholders roles and responsibilities (champion, resource manager,
sponsor, approver/reviewer)
High level project requirement, well-articulated scope that enlists what
is IN-SCOPE and what is NOT-IN-SCOPE.
Any assumptions and limitations.