Working with Multiple Service Providers

First and foremost, a service provider is an entity that provides services to other entities. It usually refers to a business that provides subscription or web services to other businesses or individuals. Internet access mobile phone operators and web application hosting are examples of service providers.

Is the US and UK looking for single or multiple offshore service providers?

It’s always good to work with a single offshore service provider in order to establish a strong relationship. However, to cater to special needs, it is a good idea to establish small project oriented relationships with other vendors.

There should only be one main offshore service provider, while the other must be selected for domain specific expertise that your vendor cannot immediately render, for reasons varying from competency, right resources, and time.

Working with vendors and developing a relationship with them takes time, energy and investment. All companies cannot make such an investment too often and prefer to stick to a couple of vendors who address their needs.

Other companies don’t just rely on a single offshore provider because it’s like placing all eggs in one basket. You are totally dependent on one vendor for all your outsourced work. Perhaps, to address this concern of security, more so to fulfill special project needs, selecting a few more vendors would be suitable.

But it depends on whether the task you want to outsource requires different skill sets. It helps to have a dedicated Project Management Office (PMO).

But nowadays a lot of business companies are opting to outsource to multiple locations. Why? Because it helps accelerate the business pace. Offshore outsourcing comes to its meaning when a company hires outside vendors or experts for services to widen up their services and professionalism.

Examples of these vendors are India, China and Philippines. These three countries are dominating in Business Process Outsourcing and IT outsourcing industry

Having multiple offshore vendors allows you to spend great time for new development of products and strategy. It prevents your company from extra expenses like opening new offices and work space for completion of several tasks while saving money for other business expenses.

Also avoiding expenses on workers cost such as taxes, vacation time, holidays, medical, unemployment costs, workers comp. etc. In addition, multiple vendors can help expand the market share at the same time create competition. This in return will add prosperity to your business taking it to the top level in every aspect by preventing extra expenditure and time on useless things and utilizing it in proper channel.