Outsourcing Viewpoints - A Checklist For Making the Most of Your Provider Site Visits

In the wake of the Satyam scandal and the recentseeking to outsource. Once armed with this
attacks in Mumbai, India, companies are looking moreinformation, it is easy to decide which locations are
closely at being well-prepared for any provider siteprimary and secondary candidates to visit. The
visits. They want to ensure they leverage their timeprovider's goal is to get as much face time as possible
and money as efficiently and effectively as possible.in front of their clients. The theory is the more time
If not structured properly, a provider site visit can bethey have, the less time other providers will have in
just that - a "visit" and not a well-planned and executedfront of the client. As mentioned previously, it is costly
data-gathering mission. Your visit team should strive toto make these visits so you want to maximize your
make it a form of pre-due diligence prior providerreturn by visiting the right location(s). Tip: To keep your
selection and contract signing. To make the trip mostcosts in line, you may need to compromise and visit a
rewarding, there are several questions your teamprovider's site that is not a COE. These are some of
needs to answer in advance of booking flights andthe tradeoffs you will need to make to keep your
setting up logistics with providers to make the site visitexpenses in line as you move forward with the
most effective. Here's a checklist to start with:selection process.
- Investment: Determine Your Budget - the first order- Planning, Agenda & Logistics: Sooner than Later
of business is to decide how much you are willing to- Planning as far in advance as possible will keep your
invest for provider site visits. This will determine wherecosts down (better rates on flights) and allow you the
you will visit (locally or at a distance) and how manytime to get your travel documentation (e.g., provider
from your company (and the advisory firm) will attend.invitation letters, passports, business visas) and health
For example, U.S. based companies can figure anrequirements (e.g., shots, prescriptions, medical
average of $8,000 for business class airfare perinsurance coverage) in order. Check with your
person to India. In addition, there are other expensescompany's travel office early in the process for the
including accommodations, local ground transportation,proper documentation required for the country(s) you
food, tips, passport, business visa, and medicalare visiting. Coordinating business visas can be very
preparation. Tip: Always overestimate your expensestime consuming. On-site logistics are critical to
because you may need to adjust your schedule andeffectively manage time and meet your visit
extend your trip.objectives. Your team should determine the "visit
- Team Involvement: Select Visit Participants - Theagenda" based on your visit objectives. This will include
senior executive responsible for the project shoulda daily logistics plan and specific questions for each
determine who needs to participate. Representativesprovider. Tip: Check your company's overseas medical
should include executives from the functions beinginsurance coverage. Ask if your policy applies
outsourced (e.g., the vice president of infrastructure),overseas and if it covers emergency expenses such
functional subject matter experts (e.g., the senioras medical evacuation. If it does not, consider
manager of the help desk) and business executivessupplemental insurance.
who will receive the services that are outsourced (e.g.,- Evaluation: Assess Providers' Capabilities and Culture
the vice president of business operations). Keep in- Providers should be evaluated after each interactive
mind, the more you have attending, the more you havesession across three primary parameters: - People - Is
out of the office for an extended period of timethere a match between our company cultures? Can
(minimum of one week depending on number ofwe work with this team? - Process - Will they
providers visited and site locations). Tip: Oftentimes,leverage industry standard processes effectively to
staff who are impacted by the decision to outsourcebenefit our project? Will we have to alter our methods
may be reluctant to travel, especially overseas as theyto adapt to the provider's process? - Technology -
may see this as a big commitment and the final stepWhat technology does the provider bring to the
toward a change in the way they operate. The seniorproject that will give us a competitive advantage in the
executive needs to encourage those to participate somarketplace? Create evaluation criteria and ensure it
they can be there to ask the right questions and seemaps to your visit objectives and each item in your
firsthand what can be delivered by the providers.agenda. This step cannot be understated. Tip: Each
- Purpose: Determine Visit Objectives - Your teamprovider should be objectively scored after each visit
needs to determine what your purpose is for theseand discussed in a daily debriefing session. It is best to
visits. The site visit team should create at least threecapture this information while it is still fresh in the minds
primary objectives. This will drive your entire agendaof the visit participants.
going forward. Tip: Don't have a small select group- Travel Safeguards: Register with Your Country's
determine the visit objectives. Broaden the involvementState Department - It is recommended that you
so everyone owns the outcome. Otherwise, for theregister with your state department so they can better
rest of the team, it is "their" visit, not "our" visit.assist you in an emergency. This will help them contact
- Timeframe: Decide When to Visit - Once you finalizeyou if there is a family emergency in the United States,
your visit objectives, determine when you will make theor if there is a crisis where you are traveling. In
site visits based on how you have structured your bidaccordance with the Privacy Act, information on your
process. In some cases, clients want to visit allwelfare and whereabouts will not be released to
providers who are responding to the request forothers without your express authorization. Tip: Leave
proposal (RFP). In other cases, the client wants to visitcopies of your itinerary, passport data page and visas
only those that are the two or three finalists. Tip: Makewith family or friends so you can be contacted in case
sure you understand if there are any national orof an emergency at home.Provider site visits are only
religious holidays that could impact your trip. Don'tone element in the overall decision making process.
assume that providers will accommodate you at justWhether you travel a long or short distance for a
any time.provider site visit, there is a significant expenditure of
- Locations: Identify Sites to Visit - Every provider hastime and money. The adage, "what you put into
at least one showcase location they want you to visit.something has a direct correlation of what you get out
To use your time effectively, your sourcing advisorof it" is most certainly true with provider site visits.
should contact each provider candidate and request aWhen conducted properly, the investment you make
list of the provider's Centers Of Excellence (COE) fornow will give you a good return on investment in future
the particular industry and function your company isyears.