Common Outsourcing Problems and How to Fix Them

1. Common Outsourcing Problems and How to Fix Them Many business owners will agree that outsourcing can help their business achieve growth and success without paying too much. Outsourcing your business’ non-core functions can also help you focus on your business and solve core-function problems efficiently without risking the quality of your products. However, due to the fact that most outsourcing providers reside overseas, there are some common problems that some business owners experience. In this article, we’re going to show you some of the most common outsourcing problems and the best tips on how to fix and overcome them. We’ve listed some of the most usual problems and provided explanations on how to handle them professionally and efficiently. Project Control and Decision Making Questions such as who will exercise authority and make important decisions about the project can lead to contention between the business and the outsourcing provider. This is due to the possibility that employees of the business may think that they have full authority over the project along with full decision rights. They may not support the change in the management of the project. This is one of the most common and possibly the first challenge that companies are likely to experience when outsourcing their services to a third-party provider. The idea of outsourcing non-core functions also creates uncertainty for existing employees, who may decide to look elsewhere for employment. The best way to address both these problems is to implement an effective change management strategy before or as soon as the outsourcing contract has been signed.A comprehensive communication should be developed and disseminated to all stakeholders who will be affected by the outsourcing process. The message should be tailored to several levels of employees. It should also be able to answer the question: what about me? Which gives employees a clearer understanding of the sudden change and allows them to air their concerns and ask questions. Having High Expectation

2. Having high expectations can also cause problems for both companies and the outsourcing provider. For example, a business may have high expectations from an outsourcing company. It may think that everything will be taken care of by their outsourcing provider and it has nothing to do. Such unrealistic expectations may result in project failure and disappointment for the business. In addition, companies may also have unrealistic expectations such as choosing a service provider and thinking that a project can be done quickly. This can also come along with the expectations that the project will be completed in the minimum amount of time. To deal with this problem, the best practice is to discuss beforehand in detail what role will be played by the outsourcing service provider and what results should be expected from the venture. It is also important to inform the project management team of the company seeking outsourcing services about reasonable risks and the possible costs related to outsourcing. In accordance with this, companies should also know that selecting an outsourcing service provider without giving due diligence could only increase the risk of failure. This should mean that companies should spend time in selecting an outsourcing provider that they think will suit their project’s or projects’ requirements. For example, if your business want’s to outsource customer service or web development, then you should choose a service provider that is adept and experience in customer service and web development. Language and Communication Challenges One of the most common challenges that businesses face when they outsource their projects overseas, is language difference and communication. People might have regional dialects that can be difficult for you to understand. In addition, one of the most common communication challenges that increase the risk of outsourcing is the unsaid assumption.

3. Communication challenges can be overcome by using tools for instant messaging and video calling. For example, companies can use remote working tools such as Skype, MSTeams, Basecamp and Jira. In addition, for overcoming language difference, businesses in English-speaking countries can outsource to India or other countries where professionals can fluently understand and speak the dialect. Intellectual Property And Data Security It’s widely known that outsourcing comes with a risk of losing intellectual properties which include trade secrets, business plans, and more. In addition, outsourcing also has the risk of breach of the data of a company’s customer. If not handled properly, one might lose the developed application or its rights. Regardless of how big and established your business or company is, having complete security of your data and IP is very important. Outsourcing will make you work with a remote tech team or developers, which might require you to share a lot of important information regarding your business, core operations, and even business assets. In addition, you might also be required to share your resources and tools while working. The solution to this challenge can be overcome by signing legally binding documents such as a non-disclosure agreement with the outsourcing service provider. With the help of this, the risk of a data breach gets mitigated when the service provider follows stringent data protocols.