When does dedicated, on-site vendor management make sense versus managing an outsourced partner remotely? The size and complexity of your outsourced operation are two of the strongest predictors, but they're not the only factors worth weighing.
Before deciding between dedicated on-site vendor management and remote oversight, work through a few practical questions:
Most companies that go offshore or nearshore don't have a registered business entity in their outsourcing partner's country, which makes it operationally difficult to directly employ local vendor management staff. It also creates a structural conflict of interest: staff on your outsourcing partner's payroll answering to your company doesn't create the independence you actually want, especially in a multi-vendor relationship.
An independent third party can source, hire, and manage local vendor management or training staff who report to you but work on-site at your partner's location, keeping the relationship neutral while still giving you eyes and ears on the ground.
Labor arbitrage is one of the main reasons companies pursue offshore or nearshore outsourcing in the first place, but those savings quietly erode if you're regularly flying corporate staff out to manage the relationship. Airfare, hotels, ground transportation, and time zone-driven inefficiency add up fast.
A dedicated local vendor manager, present day in and day out, tends to catch performance issues earlier and builds a stronger working relationship with the outsourced team than periodic site visits ever can.
TDS Global Solutions has supported on-site vendor management for outsourced and nearshore operations for well over a decade, sourcing qualified vendor managers and trainers and handling salary and benefits administration so the relationship stays independent and conflict-free.
Not sure whether dedicated on-site vendor management makes sense for your operation? Schedule a call with TDS Global Solutions to talk through your options.
