4 Common Challenges with Outsourcing (and How to Overcome Them)

The Business Process Outsourcing (BPO) sector has been one of the fastest growing industries in the world. Businesses can get various benefits when they outsource, such as reducing costs, saving time, and allocating more focus on crucial aspects of business development.

In one of our past articles, we may have discussed about how outsourcing can benefit businesses both big and small. However, challenges are always around the corner. While they are bound to happen, there are ways in which they can be overcome.

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Here are the four most common challenges (and their solutions) when it comes to outsourcing:

  1. Lack of proper communication. When the prospect of outsourcing comes into play, you must take into consideration that this will create sudden confusion and uncertainty within your in-house employees. Some of them may start looking for jobs elsewhere. The thought of outsourcing will make them start to ask the question: "What about me?" These concerns are understandable and quite common. Nonetheless, it's important to address them right away. Proper communication is key to avoid any misunderstanding of roles and responsibilities. Outsourcing might bring about a significant change in operations and processes, and it's important for everyone to be on the same page.
  2. Company culture. Culture can affect the outsourcing process. Keep in mind that you're working with a different company, especially when outsourcing is done offshore. The outsourcing partner's culture would likely be different from yours. One thing you can do is to spend time with your outsourced team and understand their approach towards work and overall dynamics. Moreover, in order to have balance in the business, both parties must be able to understand each other's cultures.
  3. High expectations. Another challenge to outsourcing success is having high expectations set by the clients to the outsourced team without the knowledge of their actual capabilities and skills. When standards are too high for the skill set and experience of the team, disappointment and a misalignment of expectations occur. If you want a good business relationship with your outsourcing partner, you must be able to mutually agree on performance expectations from the getgo.
  4. Security concerns. It is normal to have concerns on data security when it comes to outsourcing. You're literally entrusting a part of your company to another team that might be located across the pond. It is important that you ask the right questions when choosing your outsourcing provider. Check how they store your data and if they have any disaster recovery protocols in place. Having a non-disclosure agreement (NDA) with your outsourcing provider is also crucial in order to protect all your confidential information. Discuss the agreement properly with your provider to ensure that both parties are mutually agreeable to the terms and conditions set in the NDA.

Now that it's laid out, both parties should have a clear understanding on certain matters in order to overcome the above-mentioned challenges. Outsourcing should be a way to achieve long-lasting success for the client and the outsourcing provider.

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