The outsourcing of your business processes is a wise move – and at the same time, it’s not all that defines it as well, especially with long term contract models. There can be differences in business interests leading to a declined state of partnership cohesion, risk-sharing, and overall flexibility. This will lead to a gradual, if not, instant failure in progress.
Every step has to be carefully strategized while choosing offshore BPO services rather than jumping straight away into it. Most business enterprises fall for the cost-effective and quality aspect of outsourcing BPO services. Well, these aren’t what makes such solutions the ultimate or favorable, as other important factors have to be considered.
These potential factors if not taken seriously while partnering with an outsourcing company can break your business. Outsourcing should only be done when you have voluminous tasks that becomes too much for you to handle, and not when you have a problem. If you choose to go for the latter, it will adversely impact your business progress with sub-par results.
So always consider the below factors before outsourcing your business processes to ensure you have a positive impact on your business in the long-run.
Lack of Informed Decision Making
The choice for outsourcing BPO services would lack healthy and informed decision making from an organization’s management wing. This is due to their lack of proper awareness about outsourcing and the fear of losing control over their business processes or that it will affect their job security. Resolve all these by providing a comprehensive internal awareness about outsourcing, defined goals/targets, achieving responsibilities of the same, the current management role in the new process. Aloes, hold open discussions within the management wing that addresses all possible concerns, introduce incentive schemes to achieve the targets while outsourcing, and only involve committed people to the cause.
Lack of Mutual Interests
It is imperative to choose an outsourcing company that can mutually align with your business interests and goals. Mutual understanding of business interests with all the involved parties eliminates goal conflicts to work together in achieving individual goals. Also, structure the pricing based on the achieved SLA with a continuous assessment of the outsourcing partner’s business objectives.
Vendor Financial Risks
The financial risks of your vendor are problematic for your business mainly with fixed model prices majorly caused by incorrect estimations, unfortunate scenarios, and more. This can be rectified by creating hybrid pricing plans that financial risk-sharing. This is helpful when there are possibilities of exceeding your project’s budget.
Lack of Remodelling Options
If there aren’t any flexible and scalable outsourcing BPO services models from your partner it will be difficult to handle any new or urgent requirements or voluminous surges. Although it can be resolved using agile models providing enhanced means of flexibility and scalability. Exit points for either party are also important for carrying out good negotiation and a guiding committee who can assess all the new process changes.
Shortfall in Communication
Lack of regular or periodic communication from your outsourcing partner can adversely affect your project’s progress. So make sure your partner maintains prompt communication that creates a well-defined structure for overall project success. It will bring optimizations, creativity, and innovation ensuring massive benefits, and highly mitigates risks. It will open doors to newer opportunities and ideas for enhancing the project’s success rate.
SLAs and Target Meeting Limitations
SLAs may meet the specified targets but the service quality will be subpar, resulting in lower customer satisfaction, lack of performance, and more. This is where you require dynamic SLAs, assess your partner outsourcing company along with periodic performance satisfactory surveys that will help you gauge their service quality, overall performance, and more.
Insufficient Exit Strategy
Contracts that are renewed automatically make an exit strategy difficult for both parties to end the same. There will be a lot of confusion which will become hectic if there isn’t any exit strategy in the contracts. So make sure you have one during contract signing with a well-defined project duration, its incentive scheme, knowledge management system and process methodology, and training information backed up safely and securely.
These are the most common and crucial outsourcing process mistakes to look out for while you are considering companies to be your partner.