What are the key factors in outsourcing success stories?

Clear communication between the company and the outsourcing firm is crucial. Both sides need to define the scope of work, goals, and expectations clearly. In a successful case, the company told the outsourcing HR about its long - term talent needs, and the outsourcing HR was able to plan accordingly.

One key factor is cost - effectiveness. For example, many companies outsource to countries where labor costs are lower, like some Asian or Eastern European countries. This allows them to save on production or service costs.

Access to specialized skills is also important. Some regions may have a workforce with particular skills in manufacturing or technology. Companies like Apple can outsource manufacturing to places where workers are highly skilled in assembling complex electronics. Another key factor is flexibility. Outsourcing allows companies to quickly adjust production levels or product lines according to market demands. A company can easily scale up or down by working with outsourcing partners instead of having to manage a large in - house production facility all the time.

Cost - effectiveness is also a major factor. Cognizant, in its outsourcing deals, offers competitive pricing. They are able to optimize resources and processes to provide quality IT services at a lower cost compared to the client developing in - house. For a media company that outsourced its content management system development to Cognizant, they saved a significant amount of money while getting a high - quality system that improved their content delivery and management.

Clear communication is key. In successful IT outsourcing, both parties need to communicate their expectations, requirements, and progress clearly. For example, if a company outsources software development, it should be able to convey exactly what features it wants in the end product.

Expertise. IBM has a vast pool of highly skilled professionals. For example, in cases where they handle IT infrastructure outsourcing, their engineers are well - versed in the latest technologies. This allows them to optimize systems effectively.

A strong R & D (Research and Development) department is crucial. Take Facebook (now Meta) for instance. They keep investing in R & D to improve their algorithms for better user experience, develop new features like virtual reality in Metaverse, which contribute to their long - term success in the highly competitive IT industry.

Quality products. If their products are of high quality, it will attract customers.

One key factor is proper planning. In successful ERP stories, companies plan every step of the implementation carefully, from choosing the right ERP system to training employees.

In eBay's success, the concept of a user - friendly platform for peer - to - peer selling was important. For Airbnb, it was about leveraging the existing spare capacity of housing. Good marketing to build brand awareness also played a part. For Shopify, providing easy - to - use tools for small businesses to set up their stores was a major factor. It removed many technical barriers.