Outsourcing could seem quite appealing and helpful, but only until one doesn’t have a denser look at it.
In certainty, there are abundant companies out there who have endured substantial losses and sheer disappointments while outsourcing their way out of some services.
However, the losses they incite and the frustrations they encounter are not due to any flaw in the model of outsourcing, but due to their own blunders. Outsourcing itself is a very handy thing when you want your workforce to focus on the core tasks of your business. It all gets frowzy when you over-expect or create totally wrong assumptions regarding it in your mind.
This blog can help you bypass those mistakes that become a hurdle in your way to get a fruitful outsourcing experience.
1. Considering outsourcing as a pure alternative to your cost reduction plan
Picking up a vendor on the basis of low cost can be a tremendous blunder, as you will have to settle down on low quality. It’s quite simple; if you’re not selling your product at a low price then why are you hiring the outsourcing services at it?
If you want to remain successful and retain your customers, it is advisable that you choose vendors on the basis of quality rather than price. Trust us, if you have to pay a little extra for the sake of better quality, it’ll be worth it.
In the long run, you won’t have to hire a highly paid in house staff, and you’ll be able to focus more on your strategic tasks while leaving a better team to handle the tactical ones.
2. Constantly switching between service providers
One more mistake that the companies do is hiring multiple vendors at the same time or having contracts of shorter time span with them. While doing all this, they don’t even have any internal vendor management system. However, in the end, they end up blaming the vendors for things like delays and quality issues.
It is advisable that companies work with vendors for a longer time span and look for a complete solution instead of separate solutions form different vendors.
3. Buying with the hype
Don’t let the vendors fool you into buying the same old technology at a higher price when they display it as the next big thing. Rather do a critical analysis on the basis of price, quality, services offered, etc. and then make any final decision.
Try making sensible decisions on the basis of facts and figures than being fooled into a hoax.
4. Short term outsourcing
It will be great if you choose vendors for a longer span than a shorter span. If you don’t, then don’t be so picky about the quality of services because they will keep on fluctuating from one vendor to another. Vendors in the market are looking for long term strategic partnerships with the businesses, they crave for the potential of continuous revenues.
Plus, as the contract will be for a shorter span, no one will own your contract but will deal it like a petty ticket to be solved. But, you can’t blame them for thinking like that, can you?
So, if you don’t want all this to happen, you better do a thorough analysis and choose a vendor for a long term.
5. Sticking to the fixed price model
Sticking to the same price model when indulged in a long term contract with a vendor can prove to be bad for both. When you go for a fixed price bidding approach, in the long run, it gets difficult for the vendor to deliver under the expected levels of service.
So, if you want to have the constant best quality of work in a long-term agreement; try dispensing flexibility in the price model with the changing economic conditions.
In the end, we would like you to know that however bad the above instances may sound, outsourcing has got a lot of good to offer as well. It has changed the face of industries for good in the past few decades. There are many businesses who learned the art of vendor management and stepped on the stairs of triumph due to its virtue.
All you need is to avoid doing mistakes like above and learn how to have control over the performance of your outsourcing partners.
Also, do check out our previous blog to learn about “Do’s And Dont’s In Outsourcing IT Services“.