Outsourcing is the trend that has grown over the years. Services from ranging from as small as data entry services, image editing services, to highly technical ones like web development , app creation, digital marketing are being outsourced. In the words of Azim Premji, Chairman of Wipro Limited “The important thing about outsourcing or global sourcing is that it becomes a very powerful tool to leverage talent, improve productivity and reduce work cycles.” – . Outsourcing in the no core areas of business has done wonders and paved a way for better business growth and sustainable models.
With this network of outsourcing, it is important to understand the mistakes that one may do in outsourcing that may cause business failure. Presented below are the mistakes which many people have done and it is a lesson for enterpreneurs to not do those mistakes in order to create a successful business journey. These mistakes are taken by researching data and reading may books written on this topic. Read below for details :
Hiring Freelancer rather than a company : This is the mistake that can cost dearly to your business, big or small. Individual freelancers have a limitation of their own. While they can offer you less rates than a company, they are not reliable and lack the process which must be followed, while you strive to grow your business. Quoting Mr. Chris , CEO of a big brand in Ireland “ We have initially used a freelancer and were pissed off by the services. They can stop your work any time as there is no authority above them and while dealing with individuals, one more problem I faced was lack of Quality control and process of work. Later we shifted to a company and we are happy to get the services satisfaction we needed. We get back of a resource , QC team and much more which you don’t get with individual freelancers” This explains how businesses can ruin their chances of success by beginning with a freelancer due to lack of proper knowledge. Quoting the great Aristotle “ Wisdom of many is always better than wisdom of one “ This is the best advantage you get while you outsource to a professional company. In addition to the work, you get a team which manages your job and staff to ensure quality control as well in almost the same rates as a freelancer.
Not defining the scope of work beforehand : The second mistake which enterpreneurs make is to think that the outsourcing agency can take care of all the stuff without any guidance from day 1. That’s not true. Howsoever experienced a firm is, the truth is that you are best judge of your business and all business process are different. So, to be successful in outsourcing, you need to make sure that atleast for the first few weeks, you need to impart proper training and answer their queries so that the remote team gets used to your requirements and understand your process better. It is always the fact that once you are ready to invest some time initially to train the outsourcing team, you can make long term relations and reap the benefits soon. Not doing it would mean mistakes that would hamper with your growth and moreover , will result in waste of time.
Not checking the English speaking quality : Outsourcing is a norm these days. People tend to outsource to anybody available. But that’s a mistake. The language and culture barrier has to be kept in mind while looking for long term outsourcing relations. You must first ensure the English communication is done perfectly. This is the most mandatory thing as understanding the project is the priority. Quoting Mr. James , a leading manufacturer of landrover models, in Liverpool, UK, "Its almost impossible to work with outsourcing agencies not communicating properly as they will do mistakes and also they cannot properly communicate to you the process and queries which creates lots of issues. Therefore, we first decided to have a call and understand the English potential of the agency before hiring and it worked brilliantly"
Going for lowest rates : This is a big mistake which could cost your business dearly. Being Cheap is not good always. While chosing your outsourcing agency, your priority must not be low cost. This is the mistake that many people makes and realizes it after. But obviously, its far better if you realise it before hand. Suppose , you pay 100 USD extra for premium work and quality services from an agency rather than a non premium work, its better to go for premium. So, rates should matter to keep the cost down but having said that , the quality of experience must always override the rates factor. And if you do an analysis, you would find genuine companies working at a very reasonable rates and have a good staff and also can manage English communications quite effectively.
Not checking for references : You must always check for past references of work of the outsourcing agency as this would give you an idea of their expertise. Not checking it , prior may mean that you start working with non-professionals and it might impact your productivity badly. If any entrepreneur takes care of the mentioned points while outsourcing, he will surely make good use of outsourcing and can reap the benefits of this ever growing trend. Outsourcing can do wonders.
In the words of Michael Corbett, Chairman of the IAOP
“The real power of outsourcing going forward is going to be that it increases an organization’s core capacity for change and growth. The business challenges over the next decade are going to be very different than anything we’ve seen so far and the companies that weave a powerful network of global partners through outsourcing will be the winners."
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