Outsourcing is something that many businesses do but don’t talk about.
It has proven a great way for business to minimize costs, take the benefits of external expertise and expand capacity of the business, especially when specialized skills are needed occasionally. However, if you land up getting it all wrong, you might land up adding more time and cost, damage your relationships with customers and sometimes even ruin your entire business.
Here are 7 of the biggest and most common outsourcing mistakes –
- Outsourcing is just for the BIG Players
The idea that outsourcing is just for big business is absolutely wrong. A lot of small business owners have had most of the profit from outsourcing. Initially when the business starts, running out all the operations in-house is easy as the main focus is to grow the client base and get the business off the ground. But as the business grows it begins to demand more time and attention of the owner. To cope up with such demands either the owner dedicates additional time or might hire an additional workforce, both these options have their downsides.
Outsourcing is a much better way to cope with and sustain this growth era. Back office task can be outsourced with cheaper labour. While the onshore team can focus on the main income-generating tasks.
- Outsourcing = Cheaper labour = lower quality
The assumption that since low salary is paid to the outsourced employees so the quality of work is will also be low. But this thinking stands far away from the actual truth. These days there is stiff competition in getting the best talent, as there are a lot of skilled and highly-qualified college graduates who are keen to join the workforce and earn their living.
Think ahead as the right key lies in selecting the right service provider, which employs a suitable recruitment process and get these highly talented staff.
- Outsourcing firms have poor working set up
With growing technology and tough competition, the outsourcing service providers are being pushed to evolve. Service providers have become smart enough understand that they need decent infrastructure, updated capabilities, and high quality talented workforce to stay globally competitive.
- Outsourcing gives instant solutions to your problems
Outsourcing can transform a small business and lead it to astonishing growth. But all this does not happen overnight and is definitely not easy. Knowledge can be gained through lot of hiccups and stumbles that come along the way. So, once choose to outsource you cannot expect instant solution to any problem, but to gain the benefits of outsourcing you need to yourself up in the first place. Outsourcing can open up doors to massive potential for your business, only if it’s done right.
- Overestimate cost savings
Your vision about saving time and money through outsourcing might not always be correct. There are many factors that needs to fall in place first, like managing the relationship which itself takes a lot time. Other important activities that need attention are ensuring compliance with standards, measuring performance and giving feedback, answering questions, actively handling unusual situations, etc. you can expect to achieve at best 70% of estimated savings.
In-case you do better, it will surely be a pleasant surprise.
- Outsourcing doesn’t work or deliver substandard work.
Similar to the dealings that we make with any other supplier or vendor, outsourcing is also a managed service. You need to trust, due diligence, governance, and maintain transparency to lessen risks and make it work.
- Difficult to manage language and cultural barriers
It’s very true, that one of the biggest challenges in outsourcing is managing the differences in language and culture. Nonetheless, this challenge is not so big that it cannot be undefeatable. Choose a good service provider who has staff that have substantial experience of working with foreign businesses and are already familiar to the business culture.
Obviously, there will be few cultural nuances that might affect in the way of the business operations, but these concerns are not enough to completely obstruct operations if you are keen to understand the culture and work cooperatively with your offshore team.
Outsourcing is a managed service, basically a strategy that can help small businesses organizations to level up in the playing field. It shouldn’t be a fight of Us vs. Them. But it can be a total win-win relationship through teamwork.
As an Offshore outsourcing partner of many Global MNCs from US and UK, iSN Global Solutions has been a proactive leader in the Indian BPO industry. For more information on our services and solutions, contact us.