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5 reasons of outsourcing failure and their solutions
Why outsourcing is importanta) Helps in expanding business
b) Spending of company remains in control
c) Work is handled by industry experts
701 Fifth Avenue, Suite 4200, Seattle, WA 98104 +1.206.441.7760 [email protected]
Processes that are outsourced
a) Call center process (inbound and outbound0
b) Software development
c) HR services
d) Logistics
e) Manufacturing
Outsource right and win the race
701 Fifth Avenue, Suite 4200, Seattle, WA 98104 +1.206.441.7760 [email protected]
Causes of failure in outsourcing 1. Communication gapReasons:a) Cultural differences b) Language barriersc) Technological hurdlesd) Inability of client on presenting requirements to vendore) Lack of transparency in the contract Cure:f) Well planned meetingsg) Use of technology to communicateh) Present detailed requirements to vendori) Receive regular reports from vendor
Outsourcing is a well-planned step 701 Fifth Avenue, Suite 4200, Seattle, WA 98104 +1.206.441.7760 [email protected]
2. Poor performance by vendor
Reasons:a) No technological advancements b) Unskilled workforce at vendor’s officec) Lack of transparency in processesd) Improper quality management
Cure:e) Choose renowned outsourcing partnersf) Analyze proficiency of vendor’s workforceg) Make sure processes are transparent from vendor’s end Outsource responsibly to survive
701 Fifth Avenue, Suite 4200, Seattle, WA 98104 +1.206.441.7760 [email protected]
3. Unclear objectives of outsourcing
Reasons:a) Making cost control the sole reason of outsourcingb) Neglecting other objectivesc) Not examining the outcomes of outsourcing
Cure:d) Analyze reasons as per company’s long term goalse) Examine the outcomes of outsourcingf) Go through case studies related to outsourcing g) Consider other objectives like h) Access to proficient workforcei) Flexibility of processj) Quality enhancement
Outsource to expand, not contract 701 Fifth Avenue, Suite 4200, Seattle, WA 98104 +1.206.441.7760 [email protected]
4. Improper transition while outsourcing offshore
Impact: a) Rise in overall costsb) Delay in the executionc) Inefficient service
Cure:d) Plan transition beforehande) Examine each component thoroughly during transition
Outsource! Grow! Repeat 701 Fifth Avenue, Suite 4200, Seattle, WA 98104 +1.206.441.7760 [email protected]
5. Losses due to unforeseen and rising costs
Reason:a) Not forecasting the rise of outsourcing costs in futureb) Outsourcing to a region without examining its economy
Cure:a) Predict the rise of costs and outsource accordinglyb) Divide project and outsource to different regions
Outsourcing is panacea if done right
701 Fifth Avenue, Suite 4200, Seattle, WA 98104 +1.206.441.7760 [email protected]
Vcare Call Center 701 Fifth Avenue, Suite 4200, Seattle, WA 98104 +1.206.441.7760 [email protected]