6 Common Mistakes to Avoid while Outsourcing

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In today’s dynamic business environment where cutting edge competition has become a trend, one of the greatest assets of an entrepreneur is an efficient outsourced team, as outsourcing saves countless hours, which can be used for the growth of the business. In the absence of a reliable offshoring partner, the business leaders have to invest these hours to monitor & manage the work. But, this does not imply that outsourcing will always be a profitable prospect for businesses. If you make the common outsourcing mistakes, you will not only get deprived of the benefits your business could have leveraged, but it may also have a negative impact on the productivity of your organization.

This post gives an insight into the common mistakes which most of the businesses are likely to commit while outsourcing, and which should be avoided to take optimum advantage of offshoring.

  1. Shortsighted emphasis on saving money
    Most of the enterprises which outsource their business tasks cite cost savings as one of the most underlying reasons for it. Though, you save money by outsourcing, but focusing only on cost-savings leads to wrong decisions pertaining to the selection of the outsourcing partner as we tend to select the one that quotes the lowest rates. Owing to this, the enterprises, often overlook the other intangible benefits which a quality focused offshoring partner can deliver including improved emphasis on the prime business areas, process efficiency, operational reliability, implementation of innovative and up-to-date tools, technologies and methodologies etc.
  2. Failure in developing efficacious communication
    Communication is a key factor in achieving the desired results through outsourcing, as it helps in bringing clarity in task objectives and expectations and ensures compatibility between the outsourcing firm and the hiring company, and the alignment of interests. In the dearth of proper communication, none of the parties would be able to understand what is actually required and how to approach the desired results, which may lead to dissatisfaction, and affect productivity
  3. Improper definition of KPIs
    Often the businesses rely on a set of predefined KPIs (Key Performance Indicators) to monitor the performance of the outsourcing firm and retain control over the outsourcing relationship. But, any wrong selection metrics can do more harm than any good and thus, it’s imperative to choose the right set of performance metrics and define KPIs in consideration to the task being outsourced rather than picking a predefined set of metrics
  4. Wrong evaluation of the outsourcing service providers
    Often the companies do not invest apt time and money in researching the right service provider which may put the entire project in jeopardy. Proper selection and evaluation of the service providers is critical to the success of the project. Thus, indulge in profound research and use the best evaluation methodologies before getting associated with any outsourcing firm
  5. Considering outsourcing as the ideal and instant solution
    Considering outsourcing as a quick fix for alleviating the immediate problem is one of the most commonly encountered issues which leads to poor results. Also, when companies seek outsourcing partners for reselling the problems instantly, they generally hire the wrong offshoring companies as they do not indulge into proper research. It takes time to develop a fruitful relationship and make the service provider clearly understand your goals before they start delivering the measurable results
  6. Poor Governance
    This is one of the key reasons behind the failure of an outsourcing relationship. Organizations do not pay attention towards proper governance and ignore the significance of proper management which leads to dissatisfaction and non-achievement of desirable results

If you are seeking a professional outsourcing firm to outsource your ambitious project, contact us at Outsource2india. We are among the prominent technology services outsourcing providers offering customized solutions for over 13 years. Leave a comment in the box below to share your requirements, and our executives will contact you within 24 hours.

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