The Writers Block www.twb.in Page 1of 5 White Paper: Selecting an Outsourcing Partner for Technical Documentation Abstract Outsourcing of technical documentation is a process of vertical disintegration of the value chain, where some phases or even the whole production process is contracted out to service providers. It is critical that a company spends the mandate time and effort in short listing and contracting business modules to efficient technical documentation provider. The process of selecting an outsourcing partner for technical documentation calls for a strategy like in any other business situation. If not considered appropriately, the organization can go through colossal effort of time and investment with disappointing results. This paper analyzes and provides useful information on the process of selecting vendors or partners for outsourcing technical documentation work foroutsourcing companies. Introduction The technical documentation outsourcing market has matured in recent years, and so has the approach, many companies adopt to establish and manage outsourcing arrangements. Moreover, organizations also have methods in place to gauge the ability of the vendors before finalizing them as their official service providers. Selecting the right partner and implementing the best practices are vital for the success of outsourcing. Having the right partner will help organizations to cut costs, improve quality and come up with suggestions for innovative support products to enhance the revenue streams. Why do you need to have a process for selecting Vendors?Finding the right partner is the first step in a successful outsourcing relationship. Selecting a partner that can provide the cost savings as well as the required level of expertise is crucial to the success of the technical documentation outsourcing effort. Outsourcing contracts may be short-term or long-term; selecting the wrong partner can result in increased costs associated with poor response times and inability to deliver. For maximizing your company's success, the choice of outsourcer is one of the most crucial decisions. Objectives of Outsourcing The objective of the selection process is simple: identify the best-qualified service provider. It is important that the management defines the purpose, requirements and expectations of the outsourcing process prior to hiring a service provider. Technical documentation outsourcing offers a wide range of potential advantages. They include: Financial benefits: - Cash benefits through lower operating expenses - Non-cash benefits through asset transfers and removal of depreciation from t he balance sheet Economic benefits - The ability to turn fixed costs into variable ones - Accounting benefits write-downs and restructuring charges Performance improvement Freedom to focus on core competencies Improved capabili ties by having access to advanced technologies or expertise
Transcript
8/4/2019 TWB_White_Paper_Selecting an Outsourcing Partner for Technical Documentation_noPW
W h i t e P a p e r :Selecting an Outsourcing Partner for Technical Documentation
Abstract
Outsourcing of technical documentation is a process of vertical disintegration of the value chain, where somephases or even the whole production process is contracted out to service providers. It is critical that a companyspends the mandate time and effort in short listing and contracting business modules to efficient technicaldocumentation provider. The process of selecting an outsourcing partner for technical documentation calls for astrategy like in any other business situation. If not considered appropriately, the organization can go throughcolossal effort of time and investment with disappointing results. This paper analyzes and provides usefulinformation on the process of selecting vendors or partners for outsourcing technical documentation work for outsourcing companies.
Introduction
The technical documentation outsourcing market has matured in recent years, and so has the approach, manycompanies adopt to establish and manage outsourcing arrangements. Moreover, organizations also have
methods in place to gauge the ability of the vendors before finalizing them as their official service providers.Selecting the right partner and implementing the best practices are vital for the success of outsourcing. Havingthe right partner will help organizations to cut costs, improve quality and come up with suggestions for innovativesupport products to enhance the revenue streams.
Why do you need to have a process for selecting Vendors?
Finding the right partner is the first step in a successful outsourcing relationship. Selecting a partner that canprovide the cost savings as well as the required level of expertise is crucial to the success of the technicaldocumentation outsourcing effort. Outsourcing contracts may be short-term or long-term; selecting the wrongpartner can result in increased costs associated with poor response times and inability to deliver. For maximizingyour company's success, the choice of outsourcer is one of the most crucial decisions.
Objectives of OutsourcingThe objective of the selection process is simple: identify the best-qualified service provider . It is important that themanagement defines the purpose, requirements and expectations of the outsourcing process prior to hiring aservice provider.
Technical documentation outsourcing offers a wide range of potential advantages. They include: Financial benefits:
- Cash benefits through lower operating expenses- Non-cash benefits through asset transfers and removal of depreciation from the balance
sheet Economic benefits
- The ability to turn fixed costs into variable ones- Accounting benefits write-downs and restructuring charges
Performance improvement Freedom to focus on core competencies Improved capabilities by having access to advanced technologies or expertise
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W h i t e P a p e r :Selecting an Outsourcing Partner for Technical Documentation
The Workflow for Selecting an Outsourcing Partner
Workflow
Understanding RequirementsWith so many vendors claiming their competence in technicaldocumentation services, it is often overwhelming to pick the rightoutsourcing partner. The fact is that most of them have no footprints intechnical documentation outsourcing. Following a structured process, asdescribed below, will help you select the right partner:
ΠScope of documentation workΠWhether it should be done In
house or outsourced
Methods for searching a Vendor Understanding OutsourcingConcepts
There are many ways to identify potential partners: By word-of-mouth
Œ Industry TrendsŒ Expectation in OutsourcingŒ
Constraints
Internet research Tradeshows
An in-depth research and scrutiny of the market
Identifying VendorsWhatever method you use to identify possible partners, there must be aninitial procedure to qualify the partner before contracting out the actualwork. Most companies choose a vendor on the basis of its ability to givethem support and service. They also look at the vendor’s track recordand past experience and how well it aligns itself to the organization’sbusiness needs. Most organizations have service level agreements andannual maintenance contracts as the parameters on which theperformance of the vendor is measured.
ΠThrough clients success storiesΠReferencesΠMarket research firmsΠInternet and search engine
Short Listing & Evaluating
ΠInfrastructureΠClienteleΠExperience & Domain
KnowledgeΠMultilanguage capabilityΠIP Protection PracticesΠTools and Technology usedΠProcesses for Documentation
Criteria for Searching Vendors
It is imperative to identify a business partner and check for their reliabilityand services. A thorough research about the company is essential beforemaking any decision: Following are the pointers on which the credibilityof the vendor can be established:
Selecting Partner The company's experience including their clientele
ΠSelect partner based onevaluation
ΠDraft contract that covers allaspects of the documentationwork
ΠClearly define Vendor roles andyour expectation
Number of projects and their categories Profile of the company's board of directors and their key
people Financial stability of the company Communication – whether it is clear and open Documentation procedures and polices followed
The expertise and domain strength Pilot and Conclude
However, the decision to outsource technical documentation is not aneasy one and must receive the attention of top management and dueconsideration of its strategic nature, particularly if the true benefits of outsourcing are to be achieved while avoiding potential problems.
ΠAsk for a sample of their workΠTry out a pilot projectΠAssess the deliverableΠConclude by making a decision
The Writers Block www.twb.in Page 2 of 5
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W h i t e P a p e r :Selecting an Outsourcing Partner for Technical Documentation
Identifying the right partner
The success of any technical documentation-outsourcing program hinges on the relationship between thecompany and the partner. A progressive approach is to view an outsourcing relationship as a joint venture, wherethe company provides the vendor with appropriate tools and information to generate the right deliverables. One of the important tools is a clear, precise, and highly detailed contract that specifies the financial terms, allocatesrisks, lays out expectations, and anticipates potential problems.
The following facts should be considered while selecting a partner:Checking References One of ways to judge the quality of a service is to see if it has measured up to customer expectations.
You can check references from previous clients to have an objective idea of the capabilities of prospective outsourcing solution provider
To address issues like schedule adherence, trustworthiness, and responsibility, which cannot be judged by work samples alone
Knowledge of Vendors Infrastructure, System and Processes Does the vendor have adequate infrastructure, manpower and other resources including technicalexpertise required to handle your projects?
Enquire about the processes and methodologies followed by the vendors. Moreover structuredapproach to resource deployment for the said processes speaks a lot about the vendor
In some cases the relationship with the service provider needs to continue even after the completionof the project. The success of a project is best judged after its implementation, and it is during thisstage that it is most essential to have reliable maintenance services
Enquire whether they provide post development support and testing procedures to see your projectthrough its teething troubles
Ask for work samples and a possible pilot to make realistic appraisal of the quality standards andtechnical expertise of the provider
Are the tools and technologies used compatible with what is available in the market and with your systems?
The outsourcer can address the following key questions while making the decision for selecting avendor:
Issues Key Questions
Delivery Skills Has the partner demonstrated application managementcapabilities and delivery models?
Service What is the quality of service and reliability to meet customer requirements?
Financial Stabilityand Reliability
Evaluating the vendor’s overall business presence in the market.
Vendor Reputation What is the vendor’s track record? Evaluate vendor references,
industry specific experience, etc.
Price What are the cost savings? What are the different workingmodules if your business grows or contracts?
W h i t e P a p e r :Selecting an Outsourcing Partner for Technical Documentation
Issues in Selecting the Partner or Vendor
Before selecting a partner and negotiating a contract, one must know what the outsourcing agreement cover inthe process, what is the expected result, define the benchmarks, what the reporting requirements are etc. Much of the preliminary work done in the cost-benefit analysis will pay off in the contract negotiation and managementstages.
Key staff in the process of outsourcing
Requirements can be clearly communicated to the partner in the Request for Proposal (RFP), to provide acomplete picture of a vendor’s ability to meet the needs of the organization. The RFP must reflect the type of vendor necessary to complete the outsourcing proposal successfully. Understanding the emphasis of a vendor’sbusiness, or what is it that drives the vendor, is essential in choosing the appropriate vendor. It would helpdevelop a vendor selection team that recognizes all the business areas impacted by the project. Key staffs toinclude on the team are:
Senior management
Technical staff and information systems analysts Financial staff End users Legal staff with contract expertise
Planning
A poorly timed or unnecessarily long implementation can lead not only to the failure of the project, but also toother serious repercussions. Unplanned system downtime, unavailability and loss of data, and limited functionalityare likely to halt important operations and have a serious financial impact on the institution. A good plan ensures asmooth transition to service provision by an outside vendor, and to limit disruptions to vital organizationalfunctions. A prudent implementation schedule optimizes the benefits and minimizes the risks of the outsourcingprocess.
Selection
Companies can approach vendor selection in two different ways, either through: Sole sourcing with a "trusted partner" Competitive bidding
The decision concerning whether to select outsourcing vendors on a sole-sourced or competitive-bid basis can bedeceptively simple. The choice to bypass lengthy, expensive and cumbersome process for organizing, evaluating,and awarding contracts is a convenient way to satisfy internal clients and external vendors alike. On the other hand, the decision to undertake the less-convenient, competitive-bid process, if completed properly, assurestransparent, cost-effective, and efficient contract awards. It also ensures compliance with institutional and stateregulations. The key to taking the proper approach is to balance the benefits with potential risks.
The primary goal of outsourcing technical documentation is to gain business benefit and profit by handing over apart of a business responsibility to someone who is an expert at managing it. It needs a lot of planning and
anticipation of constraint.
Summary
Selection of a competent and qualified service provider is perhaps the most critical part of the technicaldocumentation outsourcing process. The process of selecting a vendor and determining their qualifications mayvary in its formality and requirements for time and resources. Criteria for selection should be determined inadvance to facilitate the evaluation process. Once a qualified provider has been identified, further negotiationscan help to finalize an agreement that is mutually beneficial. In the end, outsourcing of technical documentation ishere to stay. Those who adopt the initiative with the right approach will emerge as clear winners. A well-deliberated outsourcing plan with the right business partner would only result to an overall success.
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W h i t e P a p e r :Selecting an Outsourcing Partner for Technical Documentation
Reference
Chance Wilson, (2005), “Top 10 tips when looking for an outsourcing partner”, Resource SolutionsDST Output Inc (2003), “Outsourcing”, a white paper, www.dstoutput.comJoanne Sammer, (2004), “Finding The Best Way To Outsource Benefits”, From SHRM’s Compensation &Benefits ForumKusum Makhija, (2006), “The outsourcing game-plan”Mike Dano, “Choosing The Right outsourcing Partner”, sourcing mag.comPeter Andrews, (2003), “ The Outsourcing Decision” EduFlash IBM Executive Business Institute, and is publishedas a service of IBM Corporation.RBC Product Development, “How to Choose an Outsource Product Development Partner”Saven Technologies, Inc., “The 3 R'S of Offshore Outsourcing”Technology Marketing Corporation, (2003), “Sound strategy? Outsourcing in today's economy”, October William C. Byham, “The Outsourcing Question”, Development Dimensions International
TWB Contacts
TWB is a leading technical documentation development and design company. Should you want more informationfrom the TWB repository of information on techniques in technical documentation please contact:
