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Common Mistakes in Outsourcing

by: Sarah Joson

Thursday, March 14, 2013 | Outsourcing News |

Not all outsourcing partnerships are successful. Some clients, especially the ones that have already done this in the past, know the basic actions to turn a tainting partnership around. However, there will always be a few who are stubborn, anxious, and even unsympathetic when it comes to salvaging whatever is left of their outsourcing operation.

Common outsourcing mistakes


Before it’s too late, business owners need to look out for these bad outsourcing indications shared by Outsourcing-Center.com, and take the suggested methods to recover:

1. Low price doesn’t always equate to good service.  Keep your eyes open for service providers that are offering "too good to be true" rates. If the BPO provider you are eyeing said they are able to deliver according to the precise requirements of their clientele, you should be able to see the results yourself. They do not have to oversell their company to you or use other marketing ploys to prove that they are affordable without sacrificing the end product.

Also, look beyond their resources. Since the outsourcing industry is constantly evolving, they should be able to withstand the demand from the market and the sudden changes in the industry.

2. Red flags in cultural differences.
When performing due diligence after getting responses from RFPs, don’t forget to ask around about the work ethic and culture of the provider you’re eyeing. Also, if possible, it would be better if you observe the people, infrastructure, and current operations. Your operations might not sync with your provider’s properly, resulting to miscommunication and other issues.

3. Review the sentiments of the stakeholders and decision-makers. Always solicit the opinions of the stakeholders. It would be easier during the integration and transition period if key people are aware and well-informed about what’s about to happen. Moreover, you will know what each department is willing to do and what they need, so if in case an issue emerges, it will be easier for you to trace the cause.

4. Choose an operations manager wisely. An operations manager will act as a referee for the parties involved. He or she will be dedicated in making sure that the operation is running smoothly. He/She could either visit the providers or manage them remotely.

5. Adopting new processes. Clients should be willing enough to entrust the problem-solving process to their providers. This doesn’t mean that they will leave once they’ve informed the provider about the problem, but they should avoid breathing down the necks of their providers since it stunts their freedom to think and use their own techniques. You hired them for a reason so let them do their jobs.

6. Making hasty and irrational moves. Before giving the operation the green light, always review and reassess the plans to integrate before making a move. This will make the transition easier as everything would be well thought out and well-executed. Success doesn’t always happen immediately - it takes a lot of hard work and patience. There’s no point in executing everything at once and getting bad outcomes in the end.

7. Client-provider relationship.  Keep in mind that you are involved in an outsourcing partnership. If you lose, the providers lose. If you win, it’s also a triumph for them. You are in this together, which is why there’s no point in pointing fingers should there be a problem in the future. Both parties should own up to mistakes and be more transparent.

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