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Outsourcing How, When & Why It Might Fail

As a company grows so do their support needs: IT, customer care, product development and HR. Facing those increasing needs, some companies might choose to recruit new people in-house to address that increased demand. Other companies might choose instead to outsource this extra work to specialized services.

Outsourcing can obviously meet those needs while maintaining the lowest possible total cost of ownership.

However many executives, while facing such a decision, are deeply troubled by this doubt: what if this whole strategy fails? What are the risks? And how can your company avoid them?

With their long and successful experience, Gruppo La Meridiana has analyzed and identified the risks and mistakes that might lead to an unsuccessful Outsourcing partnership.

What are those risks? And how exactly can your company successfully avoid them?

  1.     Expectations.

A lower TCO is obviously the first and foremost aspect to consider. However, keep in mind that some less-than-honest third parties might under-price their services just to get you to sign a contract, and the sub-par quality of that service might ultimately undermine your own reputation as a business.

A great compromise would actually be to partner-up with the support company you chose, so as to train a group of people specifically to your support needs. You would then be able to evaluate their performance at a fraction of the cost of having a whole in-house customer support team.

  1.     Lack of communication

While a certain amount of discretion is always advisable, your partners simply cannot work to the best of their abilities in the dark. Most of the time people will do what they’re told: if what they’re told is not enough they won’t be able to properly finish the job assigned to them.

Speak to them. Write emails. Periodically review the prototypes. Make your product what you want it to be, by telling your partners how to do so.

  1.     Quality

            But despite all the care you’ll put into it, it goes without saying that you won’t be able to supervise the quality of the work your partners do. As such it is wise to sign insurances and/or guarantees before formally engaging in such a partnership.

  1. Diverging Interests

            Before choosing a partner in such an enterprise, be advised to carefully consider whether the company or Country in question is affected by social and/or political discord which may go against your company’s best economic interests.

  1.     Negative Public Opinion

            Outsourcing is generally and wrongly associated with the idea of hiring unqualified people, or worse, foreigners who have trouble speaking the same language. These assumptions might tarnish your reputation toward your customers. It is paramount that you fight this perception with clear and straightforward information about your business strategy and your commitment to those customers. Transparency is the way to reassure your customers about your commitment to them.

Thanks to its several years’ experience in outsourcing sector, Gruppo La Meridiana is prepared to analyse effectively every aspect of  a business process. We can put our clients in the position to pick the very best for their company, working professionally and with transparency.

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