Can you guess why outsourcing is as popular as viral news? Why corporate sector is inclining towards it? The answer of these questions is hidden in its benefits. Suppose a publishing company hired an offshore partner to take care of its book conversion. Subsequently, the company generated bumper revenue. This miracle occurred due to outsourcing. The entrepreneur got enough time for attending his core competencies. And an additional profit also fell into his lap through the delegated work.
Halt! Turning a blind eye to the trending hiring of offshore partner is not a wise idea. Catch the roundup of some mistakes that may prove a nonstarter. One must seriously consider them while deploying an outsourcing company.
When saving money is considered priority: Every businessman burn the candle at both ends. One does it for saving bucks. But he/she must be sure that they are investing in the cash cow.
Take an example of a data research company. It inked a deal with its overseas partner on urgent basis. An underlying desire of the former company was to harvest fat profit. Thus, it signed the one that assured dirt cheap primary research. Consequently, the delivered project lacked quality. However, the primary research was not proven an expensive deal. But the client had chip on his shoulders due to inferior quality of the research. So, the discontented client ceased corporate relations with it. Later, the research company lost its utmost good faith as well as prospective projects. It impact manifested on its profit ration in the later years.
When communication is distorted: There should have a strong and efficient chain of communication. Clients are integrated with the company through it. But one broken link in the chain of communication can break down relationship between the two partners.
Consider this example. An aircraft company of the US approached a data entry outsourcing in India. The project demanded support to its email services. The aircraft company assured voice as well as messaging support to its overseas partner. But the former did not follow the proper channelization of the text or mail. Thus, the latter one fell out in meeting the deadline. Thus, both companies suffered losses. And idea to outsource was proved ‘flop’.
When KPIs are wrongly defined: Key performance indicators or KPIs are the prime indicators of a company’s performance. The future goals are predefined. KPIs are prefixed. Thereby, its overall performance is monitored and tracked conveniently. But wrong or incorrect defining of these KPIs can lead the firm to the brink of bankruptcy. So, these metrics should be predefined with intensive care.
For example, an image data entry project was entrusted to the offshore partner. The partner chose quantity over quality as its KPI. As a result, the editing and conversion quality of the image were not up to the mark. Thus, the digitized images were proved ‘litter’ for the former company. Eventually, the wrong definition of KPI led to winding-up of the project and also, the relationship between them.
When instant makeover is expected: Association with an offshore partner does not imply instant makeover. It’s not a magic. However, distribution of the workload escalates production. But sometimes, a poor selection of the partner can land the associate to a crucial stage. So, a proper research should be conducted to choose an outsourcing company in India or any other country.
India, of course, is the first choice for choosing an offshore partner. It is so because of the survey published by a London-based global management firm ranked this country as top-notch among 55 others in 2016.
When governance has loopholes: Organization is the key around which ensures quality, timely delivery and profit margin.
For example, an outsourcing data entry Company lacks organized hierarchy of the workforce. It anyhow earns bread and butter. But setting up a hierarchy of the data entry operators, executives, quality analysts and managers shape it organized. Thus, its profit margin jumps up due to its timely delivery and quality work.