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4 Most Common Outsourcing Mistakes and How to Avoid Them

by: Sidney Liquigan

Monday, November 20, 2017 |

We can't stress enough how outsourcing might just be the key for your company to save money, expand capacity, and have access to extensive resources and specialized expertise for many of your business functions. However, all these can only be achieved if you do it right. Make an outsourcing mistake and the consequences will be critical – it can cause you to waste more time and money, have poor customer service, and even cause your business to fail.

Common outsourcing mistakes

The first step to avoiding outsourcing mistakes is to be aware of them. Here are four of the most common outsourcing mistakes and how you can avoid them.

Going for the cheapest service

Outsourcing generally provides you high-quality solutions at affordable costs. However, choosing an outsourcing provider based on price alone is not always a wise idea. Select your provider through competitive bidding. Review each proposal to see which of the potential vendors will meet your specifications at reasonable costs. Identifying the outsourcing company that you can build a long-term partnership with should also be taken into consideration.

Insufficient guidance

Your in-house team follows a set of guidelines and processes in order for your company to have a streamlined system and to run smoothly. Outsourcing essentially means you are hiring new people. Considering that your outsourcing provider will be working with you remotely, they need to have more guidance in the form of comprehensively documented guidelines and procedures that they can incorporate into their own processes.

The common mistake among companies that outsource is failing to provide enough guidance. Requirements and scope of work should always be clear to help encourage accountability and management of expectations. Defining the project clearly will also help you identify an accurate job description, which in turn will help you find the right provider fit for the job.

Lack of communication

Just because you can delegate work to experts who have specialized skills for the outsourced job, it does not mean you are free from the responsibility of supervising your outsourcing partner. Just as you require your offshore team to be available for correspondence and to be mindful of deadlines, you should also always be reachable so they can receive support and supervision, especially when they need information from you in order to perform their tasks accurately.

Feedback is also an important part of the process. Work with your outsourcing provider in managing your outsourced operations. Regularly provide constructive feedback that will help them identify the areas they need to maintain or improve. Telling them exactly what works and what's not working for you can help them provide better service and achieve the results you expect.

Unfamiliarity with the differences in time zones and cultures

Offshore outsourcing is more efficient and cost-effective than outsourcing to local providers. This entails challenges that lead to misunderstandings. The most common challenge is the cultural and time zone differences. Take time to know and understand your offshore team's values and culture, and their ethics when it comes to work and communicating with clients. Also, understand that your outsourcing partner may be located in a different time zone.

Keep an open mind to these differences and make room for allowances. Communication is the key to building a strong and lasting partnership. Choose an outsourcing provider that is accountable and has the skills and resources you need to add value to your business. At the same time, you should also do your part in being responsible in choosing the right partner and in being a proactive client and supervisor.

Whether you're extending your own company to the Philippines or just outsourcing a part of your operations, partnering with MicroSourcing guarantees that you will receive all the support you need in managing your operations here. Managed operations with MicroSourcing means that we will manage your Filipino team together. You can choose to have your own locally-hired managers or take advantage of our operations managers to serve as your representative in providing training and support to your offshore team.

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