In order to stay above the competition, companies are required to consider third party services in order to gain or maintain an edge in the market. But be sure to avoid the following mistakes:
Making the Wrong Choice
Don’t be attracted to the company that offers the lowest price for their services. Understand what you wish to gain from outsourcing and in what ways outsourcing will help you. Do not use outsourcing merely as a means to get a task done.
Consider your options. Is the company knowledgeable and experienced in their field? Or are they merely offering the lowest price in the market?
Decide on a company with expertise; one that understands your business and expectations.
It can be stressful having to give up control over key business processes. But the point of outsourcing is to accomplish the exact opposite – to release stress and allow your company to focus on core business operations.
Outsourcing can either be a recipe for great success or great failure. It is important that you trust your outsourcing company and allow them to complete their duties. Let them implement their own way of getting things done. Afterall, they are the experts in the specific operations.
Constantly getting caught up in micromanaging and telling them how to do things can lead to a bad relationship and incomplete work. The commitment is required from both parties. Concentrate on your company’s core functions; and trust that they have your best interests in mind.
Unclear Communication & Ambiguous Guidelines
You want to build a good and long-lasting relationship with your outsourcing company. From the get-go it is critical that you define your expectations and the company’s needs.
Have your expectations clearly defined in the outsourcing contract. This will allow you to ensure that your guidelines are being upheld and your deadlines met. Moreover, it allows the outsourcing company to use it as a reference and have a strong understanding of the type of work that must be completed.
A successful outsourcing relationship requires clear and ongoing communication.
Completely Letting Go
As important as it might be to allow your outsourcing company to get on with what they are best at, this does not mean that you should completely forget about them.
Regardless of how knowledgeable and experienced they are, you still need to remain involved. You need to ensure that they are staying up to date with the changes in the company and that they are following your goals.
Be there to respond to any concerns and share vital information with them. Afterall, this is your company, and nobody knows it better than you.
Not Defining the Scope of the Contract
The success of your outsourcing highly depends on an appropriate business contract.
In the contract, you must include all the initial requirements and everything else that has been discussed and agreed upon. Reflect on the scope of the project and priorities. Outline what you want their business to focus on and achieve.
Furthermore, the details of the plan are likely to change along the way; be sure to listen to potential suggestions and maintain an ongoing communication.
Being Culturally Insensitive
When outsourcing, you have the whole world available to you. Therefore, it is important to keep in mind that it is likely that there will be cultural differences.
Take the time to learn the cultural and behavioural differences between your company and theirs. Confrontations and disagreements should be handled properly to prevent uncomfortable situations. Not only will this prevent accidentally disrespecting any of the team members, but it will create a strong ground that will strengthen the working relationship between the two companies.
Also note that there may be a difference in time zones. Consider arranging times that suit your outsourcing company. It shows respect.