Six Principles for Maximizing the Value of Outsourcing

| | 7 min read

Outsourcing has become a considerable part of the corporate world. The ability to hire people to do specific jobs overseas has transformed all businesses. Outsourcing is preferred more than in-house production because of various factors like agility, cost, infrastructure, etc.

Keeping a futuristic approach while outsourcing your business will always work in your favour. Moreover, it will also drive more sales as you will be able to cover an enormous scope of audience apart from just your home. In this article, we will go through some of the principles that one needs to consider for enhancing the value of outsourcing their business.

Six Principles To Maximise Your Outsourcing Value

Let’s take a comprehensive look at various principles that will help you maximise your outsourcing campaign.



Futuristic Design:

By futuristic design, we mean that you need to invest in some ingenious modern-day technologies. Every business needs to be backed by state of the art technologies to outrun its competitors. 

Outsourcing requires constant sharing and transfer of data. Data is the most crucial and critical thing in the case of any business. Hence, you need to keep a close check on changing security needs. It will help you in deciding where to outsource your IT business. 

Issues will arise irrespective of whether you are selling products or services. You should address these issues swiftly and appropriately. For this, you need to make sure that the overseas outsourcing company has professional and efficient backend support. 

Cloud technology is a modern way to deal with data storage, data analytics, networking, etc. Any day, one can recommend that a company should have cloud solutions. It helps them to deliver projects with efficiency and agility.

At Zyxware, we work with state of the art technology solutions that will help you run your business in a streamlined manner.

Realign Partnership Strategy:

Running a business while collaborating with other companies is easier said than done. Both ends need to work as one entity while having a shared vision and goal. 

As per Forbes, More than 50% of CEOs, especially IBM labelled “re-inventors” in their recent Global C-suite Study, are looking to collaborate with partners more. Yet, it is noticed that collaboration still drops due to the skills gap. As per 2011, The Association of Strategic Alliance Professionals “State of Alliance Management: Past, Present, Future” report stated that the failure rate for partnerships still exceeded 50%.

Although, companies that develop good partnering skills tend to have a better partnership success rate. So, how to build or realign the partnership strategy? Let’s dive into some of the critical points of a successful alliance.

  • Trust and commitment to collaborative gains should be the foremost thing to consider. It will enhance both you and your partner’s business. It will also assist in building a healthy relationship.
  • You and your partner should be Flexible to try something new if something is not working out in the first place.
  • Have an explicit management system for monitoring the performance through metrics.
  • Plan everything and anything new collectively.
  • Resolve conflicts with a win-win outcome.

Cultivate Co-creation:

Co-creation is a process of creating something collectively, whether it is a product, service or business model. You need to discuss any new service or product with your partner to boost the value of outsourcing. It will help you get new ideas that might make your idea better.

Customer Co-creation is also crucial as at last the services are offered to them. No one can help you better in improving your business model than your esteemed customers. The more you listen to the customers, the more customers will get involved. Consequently, it will help your business grow.

According to Forbes, DHL and Phononic worked on Customer Co-creation, which led to developing more innovative solutions for them. ParcelcopterMaintenance on demand (MoDe) and Smart glasses are some of the innovations launched by DHL through customer co-creation.



Focus on Metrics That Matter:

The key ingredients that hold information about the success or failure of your business are metrics or statistics. The financial number does not entirely portray the success of your business. Many other metrics need attention. The crucial ones are:

  • Service Quality: The deciding quality indicator in this category is customer or user satisfaction. Other metrics that fall under this category are accuracy, reliability, availability, and security of tasks.
  • Relationship: Having a healthy relationship with your partner is also an important metric to consider. It would help if you had a timely and open conversation with your partners to resolve conflicts and solving problems.
  • Financial: This category includes metrics named total cost of ownership (TCO), change in operating expenses, reduction in infrastructure cost, increase in revenue and return on investment (ROI). 
  • Operating Efficiency: This category of metrics reveal operational expertise, agent adaptability, increased productivity and response rate. Efficiency helps you in knowing how fast and effectively the work is being done.
  • Growth: Quality of training and improvement programs are considered under this category.

At Zyxware, we keep in check all of the above metrics to maintain smooth business growth. Our team of professionals deliver their best work in building IT solutions for our overseas clients. Along with timely feedback and conversation, we also excel in building long term relationships with our clients.

The Shift From Low Cost to Value-Based Pricing:

Pricing is one of the essential factors that seem to bother business owners at times. Whenever you are partnering with a client offshore, it becomes crucial to discuss the prices. Low-cost pricing refers to fixing the price of a product or service based on the cost incurred to produce it. 

On the other hand, value-based pricing refers to fixing the price based on how much value the service offers the customer. Companies like software development, chemicals, and medication production mainly use this pricing strategy.

We at Zyxware ought to choose the value-based pricing technique as we know the customers prefer quality. We develop ingenious solutions that comply with the customer requirements and serve them in the best possible way. Hence, price no longer matters for them till the time outsourced is providing quality.

Invest in Sourcing Management:

Sourcing Management is the caretaking of various materials and human resources required to produce the products and services. Now, why is it crucial to invest in sourcing management? 

Various factors govern the importance of sourcing management. The first and foremost factor is cost. By investing in sourcing, you can get a higher volume of products at a low price. The same is the case with outsourcing. At Zyxware, we offer many types of products and services. And in case there is a need for products in bulk, we offer them at a low rate without compromising the quality, in turn, providing value-based cost rather than profit maximization. 

Supply stability is another advantage of sourcing management. If recognized well before time, a situation will never arise when you need a workforce and can’t get one. It helps in maintaining proper coordination between you and your clients.

Risk management is also a factor that can be easily controlled by investing in sourcing management. Whenever you have an issue with cash, you can get help from your potential customers to sustain your business. And in this way, one can avoid the risk of late delivery of projects.


As we have carefully and comprehensively examined all the principles for maximizing the value of outsourcing. One thing is pretty clear that capital investment is not the only factor that governs your company’s profit. It is also indispensable to build a healthy and long term relationship with your clients offshore. The end motive is to bring maximum benefit out of your outsourcing campaign. Now it all depends upon your refined sense of judgment on which outsourcing company you will choose. 

At Zyxware, we possess all the tools required for your outsourcing campaign and deliver the best IT services based on your vision. We deal in Digital Marketing campaigns, Websites and web application development, Mobile Application Development, Digital Marketing, User Experience Design, Software Testing, Technology consulting, and much more.


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