This is the first of a two part series where we’ll focus on site visits before you outsource. In this part, we’ll focus on the site visit basics when you’re making-up your mind as to whether your want to outsource or what you should outsource. In the second part we’ll focus on due diligence activities during the Request for Proposal (RFP) process. These are different types of trips and, while you could definitely combine the two, you’ll find that your Statements of Work (SOWs), Requests for Information (RFIs), and RFPs are more successful if you do both sequentially.

Why Are You Visiting?

Maybe you’re considering whether or not to outsource, or maybe you’re gauging what you can reasonably and successfully outsource. There are a number of books and articles on the subject, but reading is one thing. Seeing it with your own two eyes is something else. I’ve organized these trips on many occasions, and I can confidently tell you that every one of my colleagues has left with an entirely different impression and a much broader and deeper understanding of outsourcing. The senior executive traveling with me always pulls me aside to thank me for the efforts, and frequently says he never dreamed it could be this good. The initial euphoria is a good way to stakeholder a project.

This type of trip is educational in nature. If you’re considering offshoring work, but have limited experience with offshoring, then a visit to vendors’ facilities will open your mind to the possibilities and dispel many of the outsourcing myths. Here, you’ll focus on a broad scope of similar services in different industries, as well as a variety of locations so that you can get a sense for the relative advantages of different cities and countries. In addition, you’ll collect valuable information on competitors’ activities, understand the different types of vendors in the marketplace, and gain some knowledge of the travel logistics which will pay off when you plan the logistics for the due diligence trip.

Who Are You Visiting?

On this trip, you want to visit 4-6 different vendors in at least two different locations and, if you’re offshoring, at least two different countries. Pick a range of different vendors, including a couple of the world-class vendors and a couple of smaller, more local vendors so that you can get a sense of the advantages and disadvantages each provide. Unless the vendors operate in more than one company, avoiding visiting more than one site as you’ll likely see little difference - some vendors even mimic the same physical building architectures and internal cube layout from location to location.

It’s important to visit vendor locations that contain operations similar to those you are considering outsourcing. Vendors are great salespeople, and will want you to visit their locations regardless of your interests. So, if you’re not considering call center services, don’t visit call center operations. It’s a waste of their time and yours, which you’ll understand when you put together your site visit logistics. However, if you’re not sure, then plan a visit.

How Do You Plan the Logistics?

Site visits are like group vacation tours. You’ll be boxed into moving vehicles for hours on end, staying in different hotels every night, eating new and different foods, and encountering some experiences for the first time. The first thing you should do is identify a single person to communicate with the vendors and coordinate all travel. All communications should go through this single person, no matter who has a relationship with the vendor.

One thing you’ll quickly find is that it’s best to meet with some vendors at night. This is particularly true for many call center operations in India and the Philippines that service European and American clients during the clients’ daytime - which is sometimes at midnight in India! Whatever you do, don’t miss the opportunity to see the operations buzzing with life. In fact, my call center trips typically include 1 or 2 vendor visits each night, giving the travelers time during the day to sleep. Leave plenty of downtime to allow travelers to relax between grueling international travel and long vendor presentations. Plan meals, too, especially interesting local delicacies.

This person should identify each vendor location you intend to visit, plan the sequence of visits, organize airline and hotel reservations, plan ground transportation to and from the airports, and plan ground transportation to and from the vendors’ locations. In addition, this person should schedule business meals with the vendors (incredibly valuable offline way to learn more about a vendor and location), internal debriefing meetings (more on this later), and if you’re in India, please take the time to visit the Taj Mahal or rug shopping. The entire itinerary should be put into a single document so that the group can easily refer to the logistics.

Oh, and all travelers should travel on the same flights wherever humanly possible. Trust me - it’s easier to do this, and it lends itself to better group dynamics and more opportunities to exchange trip insights.

You’ll quickly find that only the best of administrative assistants can do this level of planning and vendor communication, and that it’s probably a task for a more experienced resource.

What is the Site Visit Agenda?

Vendor visits should be 3-4 hours long and should follow the exact same agenda, which you’ll provide the vendor in advance. The agenda should include the following activities: introductions, an overview on the vendor’s company, an overview of the vendor’s local operations, local demographics and hiring processes, new program training curriculum (you’ll find the vendors have basic training classes on language, customer service, and quality), quality management practices, a facility walk-through to see the transactions/programming in action, a discussion on new program implementations, a short conversation on data and voice connectivity, and a conversation on the potential sources of disasters and disaster recovery processes. The goal is to obtain a high-level understanding of the local area and how the vendors perform services. Other nice-to-haves include a meet-and-greet with the agents to get a sense for frontline talent,

You’ll find that you’ll have barely enough time because you’ll be asking so many questions for the first time. However, the benefits of short meetings are that attention to detail is better for the entire group. No one can handle five 6-hour vendor presentations each week without losing a bit of their edge! Task a person to time management in the meeting to make sure you stick to the agenda and time frames. Also, don’t let your vendors vary from your agenda too much…otherwise you’ll spend valuable time listening to uninteresting topics.

Who Should Attend the Site Visit?

Consider this team to be the scouting team and keep it small. No fewer than two people for safety reasons and to make sure those individuals can talk about their different impressions. No more than three people to limit costs (figure a two-week international trip to two countries will run about $10k per person) and keep logistics manageable. In some situations, the vendors will want to send salespeople with you. Try to give yourselves time away from the vendors while traveling on planes, but definitely take advantage of the vendors’ hospitality once you arrive at the airport.

What Should The Team Include in Their Final Report?

These trips are not boondoggles - this is real work. It’s important after each site visit that the team combines notes in a debriefing session, which will occur as soon as possible after each vendor meeting. If you wait too long, you’ll forget critical information. At the end of the trip, the team should provide a report summarizing the relative strengths and weaknesses of each vendor and each location. The report should include recommendations on the scope of work the company should consider outsourcing, as well as key risks and mitigating actions. Where possible and allowed, pictures of buildings, key vendor employees, and operation areas should be included in the reports. The team should present the report to the company’s key stakeholders in order to give time for questions and answers.

Have you used different ways of learning about outsourcing first hand? Let us know by adding a comment below and sharing your perspective with the community at-large!