Outsourcing has become a popular business strategy globally with business of all sizes outsourcing their various business processes. Aside from a much lower overhead cost, flexibility and access to global talents are just some of the reasons why companies have adapted Business Process Outsourcing (BPO) as one of their core strategies.
That being said however, it’s best to think things through before rushing headlong into outsourcing and avoid potential mistakes which can cost your business much time and money.
Here are some common mistakes to avoid when outsourcing your business.
1. Assuming that the lowest price is the best choice
While cost is one of the major consideration when outsourcing, the lowest price is not always the best. You do get what you pay for, after all. An outsourcing company for example that invests in its operations and its people is going to be slightly more expensive that other providers in the market but they are also more likely to be better at their jobs as well.
2. Failing to provide writing and documentation
One of the more common mistakes a company make when outsourcing their business process is failing to define it with written guidelines, procedures, and rules. This leads the workforce to make assumptions (which could be wrong) especially on ocassions when you are unavailable for consultation. Ensure that everything is written and well-documented.
3. Failing to put measurements in place
Determine how you will measure performance and communicate this properly to your outsourcing partner, ensuring that expectations are set and everyone is on the same page. Failure to do this will lead to wildly varying levels of performance because no one is clear on what is expected of them and thus fail to act accordingly.
4. Failing to invest in the relationship
Just like in any relationship, one must be prepared to invest on it to make it work and it’s not all about money. You should take the time to get to know your outsourcing partner, the team working for your, and aprreciate cultural differences when dealing with off-shore providers. This helps create a stronger bond between you and your outsourced workforce.
Outsourcing doesn’t have to be hard. If you’re planning to outsource make sure that you’re clear from the get go why you’re doing this, what you hope to get out of it, and how you can make it a success. We can help you with that.
CLEAR provides customised outsourced solutions to small to medium size companies in Australia. With our extensive experience in recruitment, integration management, and delivering outsourced solutions for companies in Southeast Asia we can help you get the most out of outsourcing.
Get in touch for a free consultation:
1300 300 269 (Australia)