White Paper: Drivers of Technical Documentation Outsourcing

Abstract
To be successful in an increasingly competitive economic environment, decisions to outsource technical documentation activities are essentially driven by factors related to costs of production, distribution and productivity. Though these are the major drivers of technical documentation outsourcing, there are also other factors influencing the decision of the companies top bench. This white paper examines some of the drivers or determinants of the technical documentation outsourcing from the client perspective; and focuses on a clients key strategic decisions regarding outsourcing of technical documentation.

Introduction
Intensive and accurate documentation is proving to be the anchor of the business process in todays information age. But due to the increasing complexity of the business processes and improved technology, organizations seek the services of specialized documentation vendors. Apart from this, globalization of available technology and services, focusing on core competencies and other demand and supply factors have lead to increased outsourcing of this service. The use of technical documentation outsourcing enables firms to channel their resources to reinforce their competitive advantage. However it is important for organization to understand the factors influencing the decision of outsourcing technical documentation, so as to clearly define the role of the service providers to optimize their business modules. Writing Facts not Fiction Technical documentation or writing, generally translates to a piece of writing that conjures up an image in the mind of an end user of any device or software application. In other words, the profile of a technical writer involves writing and designing user guides, brochures, white papers etc. for products or services in all kinds of domains. Thus the key role of the technical writer is to translate highly technical and scientific information into an accessible language, appropriate to the proposed audience. Outsourcing a Strategy Companies opt for technical documentation outsourcing when they realize that some of their peripheral business operations can be outsourced resulting in indirect reduction of cost. Due to the technological revolution in the last few decades, there has been significant reduction in the costs associated with the following: Information sourcing Transportation Communication and Business Coordination This in turn, has lowered the transaction costs thus augmenting the possibilities for outsourcing keeping in pace with the Consumers requirement. Outsourcing can be used as a strategy for gaining flexibility that would allow large firms to reduce their rigidity. In a very strong competence environment, a high grade of product differentiation is the need of the hour. Consumers demand more and more specific product characteristics. In this context, organizations have to be flexible to adapt to the changing needs of the consumer. One of the alternatives in obtaining flexibility is to sub-contract specific operations or tasks to service providers. That is, firms can focus on their key business functions where they are more efficient and have higher turnover.

Partnering with a Vendor

Why should an organization transfer the responsibility of technical documentation, an activity that is perhaps performed internally to a third party? In the realm of supply management, that third party is generally a supplier or a vendor. The requirement for outsourcing documentation can fall under any of the following three categories: Internal documentation team thats overloaded The Writers Block www.twb.in Page 1 of 5

White Paper: Drivers of Technical Documentation Outsourcing

Internal documentation team thats been tasked with converting to the outsourcing model Do not have internal documentation team

To partner with a vendor who is a specialist and proves to be the answers to your requirement will serve many advantages. Organization can streamline business operations, while maximizing internal resources to increase quality of products and services they offer. Few of the advantages that can be benchmarked while outsourcing document requirements are as under: Reduce cost Improve service level Focus on core business Reduce capital cost Migrate to new technology Gain process knowledge Reduce time to market Accelerate ROI

Key Drivers to Technical Documentation Outsourcing

Choice whether to use internal or external resources on a project is determined by a combination of both the hard costs and the soft costs (the more intangible needs, risks, and benefits). Decision makers need to identify a complete and comparable set of costs and benefits regarding resource choices. Resource limitations, in-house skill sets and knowledge, and expected performance and outcome measures are important factors that must be analyzed in making the technical documentation outsourcing decision. Establishing and analyzing quantitative and qualitative criteria provides a bottom-line total that indicates which staffing decision is most effective and states the reasoning used in making that decision. Outsourcing can be an efficient and effective alternative to using in-house resources, but a full determination of costs and benefits is required to make that decision. Cost savings Good product documentation has many benefits, the most important being that you will have fewer support calls and better sales. These are the major drivers for outsourcing technical documentation: Reduces overhead Reduces development time Reduces capital investment Remove fixed/control cost Turn fixed cost into variable cost Meet downsizing requirement Obtain intelligence of competitiveness Gain technology and skill that is new to the company Create additional capacity Provide backup capabilities The overhead costs are higher when there are more writers. A company based in an area with a higher cost of living, has much higher expenses. If the product cycle includes only two releases a year, the team may not have much to do during most part of the year That means the documentation team add little to product development and spend more time in training and updating. Documentation is actually read by many people. When the documentation is useful, they find their answers and do not call the customer support.

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White Paper: Drivers of Technical Documentation Outsourcing

Knowledge transfer or Gain to access world class capability It is very rare to find an individual or a group who are experts in every field. An expert will perform tasks that require a special know-how much more efficiently. As a result, companies can achieve superior quality of work. The effort to write quality documents may start with commitment, but without knowledge and skill it may turn out to be an amateur attempt. Technical documentation outsourcing providers bring extensive worldwide resources to meet the needs of their customers. Speed to market One of the big advantages of outsourcing technical documentation is that it enables a company to respond quickly to the changing market needs. Using the same logic, a change in the geopolitical climate or in the companys focus or profitability could necessitate ending an existing outsourcing relationship. Outsourcing helps develop applications faster, thereby giving enterprises tremendous competitive advantage. Thus necessity of speed to market is the one of the factors that influences decision makers. Previous outsourcing intensity We find that the current level of outsourcing technical documentation is high as compared to the previous outsourcing intensity. The market transaction costs associated to contracting out technical documentation are probably lower than the in-house technical documentation. In due course, these costs also will be reduced Therefore, if firms are achieving their objectives of gaining quality, flexibility and decreasing costs, outsourcing will be used more and more intensively allowing firms to concentrate on their core competence. Availability of specialists /quality Outsourcing allows the buyer to take advantage of the best suppliers available. If you contract technical writing to a team, the team can supply resources on an as-needed basis. In this way, organizations, which outsource their activities, can also have access to the latest technology without having to invest. Reference A reference from previous customer or a known person always makes an impact on the potential customers. The vendor should be able to provide reference or testimonials from their clients and list their client base to customers. An effective way to measure a vendor's ability to provide quality service would be to verify it with the organizations who have been customers of the vendor. Reliablity and Value Companies prefer technical documentation outsourcing to vendors with significant experience. Moreover, companies have moved or are moving towards a strategy of multiple locations, multiple vendors and a judicious blend of outsourced models to minimize risks and maximize flexibility. Trust, Relationship and confidentiality Confidence and trust is another factor that influences the decision to hire an outsourcing partner. Moreover they should comprise of skilled and reliable team with supporting infrastructure. The vendors operational capabilities can be verified with pilot projects and checking their client list. The success of any outsourcing program hinges on the relationship between the company and vendor or partner. Lack of available in-house personnel Recruiting the right personnel, who is skilled and has the right attitude, may prove to be time consuming and an expensive process for the HR team. In other instances, the documentation team may be overloaded with backlog of projects. Companies outsource to vendors, whenever there is a sudden requirement for product documentation, binding them to a tight schedule and with no personnel to deliver the same.

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White Paper: Drivers of Technical Documentation Outsourcing

Experience A writer with experience has industrial expertise and works with latest technology in the technical documentation field. Well-written information will help readers understand the document and take decisions. Further, this also results in customers making only few calls to the help-desk. The way information is presented and designed needs experience and knowledge of the content and the audience. Therefore the experience of the documentation team plays an important role while deciding to outsource technical documentation to a third-party.
Lower ongoing investment required in internal infrastructure

Outsourcing allows the company flexibility to convert fixed costs to variable costs. Outsourcer needs to pay only for total amount thats invoiced by the vendor or partner. This eliminates the need of investing on internal infrastructure, recruiting technical writer etc. Firm size The size of the organization often determines the extent and frequency of its activities. A large technical documenting company has greater opportunity to gain economies of scale from in-housed facilities. Smaller companies are less likely to support the immediate requirement in the absence of economies of scale. Also many studies showed that psychologically, firm size impact on outsourcer to feel comfortable with his decision. Maximizing return on investment A company can maximize its return on investment (ROI) by way of minimizing cost through outsourcing technical documentation. The ROI also helps in decision making to some extent while outsourcing technical documentation.

Summary
There are many individual objectives that drive companies to outsource technical documentation. The environment we live in now not only encourages outsourcing of documentation but also provides lots of opportunity to acquire the same. The ongoing process of globalization ensures that it becomes easier for doing business with one another. Outsourcing technical documentation is a necessary, effective, and inevitable strategy to reduce costs, focus on the core business, maintain competitiveness, and obtain needed capabilities.

Reference
Jon F. Doyle and David Llewelyn, White & Case LLP, Building Successful Outsourcing Relationships Carmen Daz-Mora, (2005), Determinants of Outsourcing Production: A Dynamic Panel Data Approach for Manufacturing Industries, University of Castilla-La Mancha, Spain Satwik Seshasai and Amar Gupta,(2004), Global Outsourcing of Professional Services, Working Paper 4456-04, Massachusetts Institute of Technology Sloan School of Management Karsten Bjerring Olsen, (2006), Productivity Impacts of Offshoring and Outsourcing: A Review, OECD Directorate for Science, Technology and Industry, OECD. Ting Gao, (2002), International Outsourcing, Innovation and Growth, Department of Economics, University of Missouri, 118 Professional Building, Columbia, MO 65211, USA. Document 67,(2006),Rethinking Outsourcing Strategies, Nucleus Research Inc., September. Toms Fco ,Vctor Padrn Robaina, Juan Carlos C. Surez, The Management Perception of the Strategy of Outsourcing: An Empirical Evidence, Espino-Rodrguez1, Universidad de Las Palmas de Gran Canaria, Spain Stefan Buehler, (2004) Strategic Outsourcing Revisited, University of Zurich and University of St. Gallen Justus Haucap Ruhr-University of Bochum, October.

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TWB Contacts
TWB is a leading technical documentation development and design company. Should you want more information from the TWB repository of information on techniques in technical documentation please contact: Global Sales Rakesh Shukla rakesh.shukla@twb.in +91.9945041426 India Sales Ranjith Radhakrishnan ranjith.radhakrishnan@twb.in +91.9845065233

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