Outsourcing Risks and How to Avoid Such

On July 6, 2011, in Outsourcing, by Business Development Group

RISK: “Loss of control” on the outsourcing process

 

From its operational responsibilities to the day-to-day operations, it has always been a concern on who handles responsibility for the outsourced service.

Answers to pieces. With careful planning and the proper delegation, outsourcing risks can be mitigated.(Photo credit:lantzzsrantzzs.blogspot.com)SOLUTION: Communicate! Communicate! Communicate!

On the project onset, all roles and responsibilities of both the company and its outsourcing service provider (OSP) should be clear-cut and specific. This should include job functions, expectations and most especially, the deliverables.

It is important to note that your outsourcing service provider has the same level of commitment to your organization.  After all, the more closely aligned your organization is to your OSP, the more seamless your operations will be.

 

RISK: Lack of Expertise

 

It is difficult to find an outsource partner with a proven track record, experience, and knowledge in a particular industry.

Answers to pieces. With careful planning and the proper delegation, outsourcing risks can be mitigated.(Photo credit:lantzzsrantzzs.blogspot.com)SOLUTION: Have them Outwit, Outplay – Choose the one that Lasts.

The market for an expert outsource partner is global, thus, huge.  It may be wise for you to determine the quality of their workforce –  well-educated, good language competencies and work ethic as your prime consideration. From its skilled workers, cultural adaptation and most especially, the costs, a company can easily find an OSP with the expertise you require.

 

RISK: Negative Customer Reaction

 

The vendor will not be able to service customers well and will be a big problem for the company.

Answers to pieces. With careful planning and the proper delegation, outsourcing risks can be mitigated.(Photo credit:lantzzsrantzzs.blogspot.com)SOLUTION:  Mirroring Company’s Best Practices in Customer Service

If an outsource service partner provides poor service, your company will not only revenue, but a more important asset –  your reputation. Thus, the need to provide the outsource partner with your customer service standards is essential.  Making a clear cut service delivery practice allows the OSP an opportunity to “mirror” you and your company.

 

 

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11 Responses to “Outsourcing Risks and How to Avoid Such”

  1. Squeezie8 says:

    Well written! This is really substantial and worth the read. It would be good though if you should also cite specifics as to good location to outsource...Can you help me out

  2. Fortknoxmedicalassociate says:

    Certainly enjoyed this, would this however work for us not-so-big a medical establishment? Do you cater to both medical and voice transcriptions? PLease email me your specifics I would really appreciate it. Thanks!

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