So you've signed an agreement with a third party in another country to carry out specific tasks? Time to take a breath and relax? No way! That's not it. When you outsource a task, you cannot leave it all to the third party. Instead, you should always keep a check whether the job is being done as per your requirements. Lack in communication is the main reason why many outsourced companies fail to deliver what they promise, resulting in a waste of time and cost. To make your outsourcing process painless, you need to know about the significant challenges that you may face during the process.
Common Outsourcing Challenges
Outsourcing is difficult to implement, and the failure rate of outsourcing remains high. Depending on who you hire, it can be 40 to 70 percent. The core of the problem is the conflict of interest between both parties. Most companies look for a better service, often at lower costs, than they would get doing the job itself. The seller, however, wants to make a profit. That tension must be managed carefully to ensure a successful outcome for both the customer and the provider. Many failure examples show that due to the lower costs of the project, companies don't get the desired results and end up complaining about the final outcome.
Below are some of the outsourcing challenges that people face:
One of the main concerns of a relationship between a client and an outsourcing agency is the question: 'Did you understand the terms of the contract?' Although the company and the outsourcing agency may have understood the project well, both are highly likely to have the same perspective. This is where most contracts go wrong and end up delivering poor outcome.
Lack of Skills
Sometimes, the outsourced agency may not produce the desired results due to lack of skills that the client might have asked for or is looking for. Therefore, they do what they have, which later end in poor results and performance, much to the customer's dismay. It occurs due to inadequate training or lack of experience in the subject.
Outsourcing agencies or individuals rely on the fact that they can offer not only quality but also fast deliveries. Unfortunately, that is not true in reality. Some of the complex projects take more time than what is promised and hence, the outsourcing agency fails to deliver in time, causing trouble to the company who has outsourced. Therefore, management should be aware that streamlining the process would result in better time management for the outsourced team.
Health and Safety Issues
Sometimes, due to negligence, it is highly likely that outsourcing companies may hire unskilled contractors who cannot work efficiently for a given project. Their lack of familiarity with the environment or lack of knowledge can lead to physical accidents that can cost a lot to both the agency and the client if this matter is not resolved. Such issues can often happen in production industry where labor is involved.
The solutions to these challenges are subjective to the scenario that the two parties face with each interaction between them. But this in no way symbolizes the inability of outsourcing to do things when they need to. So if you're still out there wondering if it will do you any good, the answer is YES! Outsourcing comes with both advantages and disadvantages. To avoid the challenges mentioned above, management must do thorough research about the team that they are considering to outsource. It can be done by choosing the right platform, seeing previous work and also, checking the feedback given by past clients.