Common Mistakes In Outsourcing That You Should Avoid

Common Mistakes In Outsourcing That You Should Avoid

When you have the right outsourcing company to provide services like computer support services, then you will surely reap the benefits of it. It is a great way to cut your operational costs, expand your company’s capacity and tap into expert knowledge and skills. But if you get the wrong provider or make one wrong move, it can be catastrophic. You could damage customer relationships, incur additional costs and on the worst case scenario, even ruin your company.

What are the most common mistakes when outsourcing? If you want to find out, then continue reading this article for the list of these mistakes.


Mistake #1: Outsourcing business functions that affect a customer directly.

You will often find companies that are outsourcing functions that directly affect their customers. Some of these examples are the sales, responding to emails or calls and even customer service. There is nothing wrong with this. However, there are some outsource companies that provide results that cannot be considered outstanding. When it comes to these functions, getting any result other than outstanding or great is unacceptable.

Mistake #2: Cost savings from outsourcing are overestimated.

Outsourcing may be able to save you some time and money but it is never as much as you wish it would be. Even though other people will be handling the function itself, you still need to manage it and this can be time-consuming. You need to make sure that the provider is to the standards and you need to measure their performance. Aside from that, you also have the task of providing feedback. If the provider has any questions, you will need to answer them and if any unusual situations arise, you will need to step in to handle it. The best scenario is that you will get only 70% of the estimated savings.

Mistake #3: Not giving guidance.

It makes sense to outsource if the task or process has been clearly defined by procedures, rules and guidelines. Unfortunately, a lot of companies do not bother to make these. Even if your company already has an in-house guidelines, you need to double this available documentation for your outsourcing partner. You need to remember as well that in companies, some of the practices and guidelines are not written. You need to make sure that everything is written when you plan to outsource any service for your company.

Mistake #4: Getting an outsource partner too quickly.

It is easy to get tempted to completely turn over a process to a partner. But don’t. Opt to turn over only a portion of a business function to your provider and make them work so that they can earn a bigger portion of the function.

Mistake #5: Not having measurements put in place.

When you outsource a process or function, you are naturally putting it out of your sight. When you do not have any measurement system, you are also keeping it out of your mind. You need to make sure that you have a way to determine how well a provider is performing and even go to the point of testing your provider’s performance every now and then.