The 5 C questions around outsourcing

Outsourcing is considered to be an agreement between the companies where one company
hires other which is responsible for the internal activity of a company.
As it is rightly said:
“The important thing about outsourcing or global sourcing is that it will become a very
a powerful tool to leverage talent productivity and reduce work cycles” — Azim Premji

5C’s
1: Communication

Communication is considered as one of the important concern for better understanding. It can
be verbal or written.
Some of the steps which can be taken to create outsourcing communication success are:
 In the first step, we have to try to find the problem which we want to solve and also
we have to see what different opportunity we are getting. On the other side, it is also
our duty to see that there should a good relationship between the companies with
some set goals.
 In the second step, we take our outsourcing partner and customer communication to
the next level so that both the parties can have good and clear understandings.
 In the third step, the company also have a backup plan, so in case of any emergency it
can be used.
 Once the goals are set, they should be clear to both the parties which leads to the
fruitful results.

2: Control

With the communication above control also play an important role as a primary concern.
Partner has to also face many challenges which come in a broader and deeper one. There are
many platforms where supply chain data such as inventory, WIP, quality etc have to be
managed from time to time. It totally depends on the partner's technological capabilities but
there are many generations of supply chain tools which offer them a variety of options that
enables them to real-time management of different partners.

3: Cost

Cost also plays an important role as after planning, the partnership is seen to be more tricky and
costly and it is especially when expectations and cost are required to be not set properly. If we
implement a strong good system and workforce process then it helps companies to monitor
cost areas which create a good impact on profits margins.

4: Coordination

Coordination is considered to be the fourth concern of outsourcing. As it plays a very
important role. It depends on two factors: it helps in increasing the customer demands and
risk of the supply chain. Communication and control play an important role in coordinating
concern as they considered being one of the keys to increase coordination. Coordination also
helps us to build a good relationship with other companies.

5: Customer

Customer is considered to be one of the most important concerns. It is our duty to fulfil all
the needs of the customer by providing them with good product and quality. Sometime quality
issues may arise just due to lack of standards. On the other side, there could be a chance of
miss-communication just due to shortage, delay, damage etc. So it is our duty to make our
customer satisfied.
By: Krati Porwal