11 Feb 7 Most Common Outsourcing Mistakes to Avoid
Get it right and outsourcing is one of the finest approaches to save countless hours and cost and expand business by maintaining long-term customer relationship.
Outsourcing will not always be beneficial for business. If you commit mistakes, you will get deprived of the business profits. Get it wrong and you can damage customer relationships and sometimes even affect your business.
Here are seven biggest and most common mistakes to avoid when outsourcing your work:
- Hiring without Due Diligence:
You don’t even hire any candidate in office without due diligence, so how can you sign an agreement with an outsourcing partner without due diligence. It is imperative to make reference calls, ask them about how they will manage your work from where you can get the idea how they fit in for the position you are hiring them.
- Overestimating Cost Savings:
Outsourcing never saves lot of money and other resources as you hope. It is advisable to consider important factors, i.e. handling communication, measuring performance, providing feedback, operational reliability, answering questions, implementation of innovative and up-to-date tools, technologies and methodologies etc.
- Failure in Maintaining Effective Communication:
Communication is an important factor in attaining the desired results when outsourcing. While you outsource, you must take time for developing comprehensive guidelines and rules. In the dearth of continuous communication, unnecessary confusion may occur at different levels which can create dissatisfaction and lower business productivity.
- Keep Pace Slow:
Going too quickly when outsourcing can create a number of unexpected problems. It is imperative to keep your pace slow while outsourcing to develop a comfort level.
- Lack of Performance Measurements:
When outsourcing partners are working out of your site, it’s important to measure their performance to get an idea how effective they are in the given job. Outsourcers need to work with their outsourcing partners to set up performance levels that are good enough for both.
- No Exit Strategy:
There comes a time when an outsourcing partner needs to disengage with outsourcer and vice-versa. So, there must be a pre-determined criteria to discontinue. Both the parties need to serve a notice period before exiting.
- Wrong Key Performance Indicators:
Generally, businesses rely on a set of predefined KPIs to analyze the performance of the outsourcing partner and maintain control over the outsourced relationship. Any wrong selection KPI’s can harm your business. So, it’s important to select the right set of key performance indicators.
So, these are the most common mistakes the outsourcer should avoid to succeed and get better results. It is beneficial to avoid these mistakes to be on your way to success in your outsourcing projects or business processes.