Aligning Vendor Scale to Client size and Expectation
While Clients are increasingly looking for returns on investment through outsourcing, it is necessary to appreciate the extent of investment and risk that vendors must accrue while venturing into the outsourcing business. The inflow of work and process delivery being hand in hand, it is necessary to align certain vital factors such as the extent of risk aversion to be addressed, the operational scale, maintenance of quality and the budget requirement for an upfront resource investment. Undeniably the extent of these factors rises as the scale of work from a client rises.
In this respect, while work exists at nearly every rung and scale, the investments and risks encountered by vendors vary with the size of the client. While expectations escalate with the scale of the client, smaller clients seem to be more likely to entail risk and a lower chance for upfront investment in a project. Furthermore, larger the buyer, the process of due diligence, Request for Proposal (RFP), process driven business methods, say-in-strategies etc. intensify.
Taking into consideration this scenario, it is sensible to move progressively, rising up in scale and along the value chain. As security infrastructure, technology and processes consolidate, concerns of larger clients are almost automatically met. As for the industry's rapid expansion, a space for nearly every credible player is secure, so long as the primary concerns of quality, security and confidentiality are sufficiently addressed.
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