Organizations of all sizes can benefit significantly from outsourcing.
Companies can save on operational and labor costs as well as streamline their operations, allowing them to focus on their core business. It levels the playing field, making it possible for smaller companies to compete with the bigwigs.
First Things First
As with any other endeavor you take on in life, adequate preparation is essential when outsourcing. It can backfire if you jump in too quickly without giving ample consideration. And when it does, it can damage your company’s reputation and bring you more harm than good.
Here are some of the most common mistakes that you should avoid.
1. Not having thought it through.
Just because everyone’s been saying it, you should not just jump on the bandwagon without really thinking things through.
Before even diving right in, you need to have already thought about:
- Why you’re outsourcing and what you want to get out of it.
- If you’re outsourcing to save on costs, have an estimated amount of the savings you want to achieve.
- If you’re outsourcing to streamline your processes or free up your time, identify the tasks that take up your time or the ones which are outside your expertise.
- How much capital you are willing to spend.
Getting clarity on the issues listed above will set the foundation to a solid outsourcing plan.
It will guide you in choosing the perfect outsourcing partner. It will also set the guidelines for the outsourcing agreement with your vendor. Things like a schedule of productivity and deadlines, how progress looks like, how to settle disputes, communication expectations, payment plan, etc.
2. Failing to do a thorough background check on your outsourcing partner.
Do not be overwhelmed by the staggering number of outsourcing companies out there. Just because you do not have the time to do an interview or a background check you choose the most popular, the biggest or the cheapest one.
Remember that your outsourcing partner is your company extension. Choose wisely and make sure that your outsourcing partner can and will represent your company well.
3. Outsourcing functions that directly impact your customer.
When you become too outsource-happy because you are significantly saving on costs, please do not outsource all of your business functions.
It is a fact that every part of your business operations impacts your customers one way or another. However, you would still want to exercise caution about allowing a third-party vendor to be a point of contact for your customers.
For example, you can outsource customer service, but your BPO partner must deliver your servicing needs exceptionally while imbibing your company culture. Customer servicing affects your brand image and will give you less control over the customer experience. So before outsourcing any office function, pull out all the stops to make sure that your outsourcing partner will deliver as promised and do your company justice.
4. Going for the most affordable outsourcing company and hoping for the best.
Buoyed by your hopes that all outsourcing leads to success, and coupled by your effort to save on costs, you want to go with the cheapest outsourcing partner.
Of course, we all want to pay the lowest rate possible, but most of the time, it also tends to come with poor work quality or lack of expertise. The type of work you outsource will dictate the amount you need to pay for.
A fixed priced contract can work on short term projects such as programming. But it may not be an ideal one if you want long term support for functions such as marketing. You need to do thorough research and be flexible. It may be worth it to pay that extra amount in the long run.
5. Failure to create an exit strategy.
What happens if you go beyond your estimated budget or your outsourcing partner is not able to deliver on the services they promised? With our volatile economy, what if they suddenly go bust and you need a replacement asap?
Relationships are trial and error in nature, and they don’t always go well. If your partnership does not work out, make sure you have a clear and cordial exit strategy to rely on.
With the right outsourcing partner, your business can grow and reach its full potential.
Whether you are new to outsourcing or not, we at Select Voicecom will work with you to implement an outsourcing solution that suits your needs perfectly.
We guarantee you unparalleled expertise and unmatched quality service at a price that is easy on your budget.
So what are you waiting for? Contact us today to find out more!