In today’s fast-paced business realm, “outsourcing” is the name of the game. Gone are the days when companies relied solely on in-house resources. Instead, they’re turning to external service providers, often in far-off lands, to handle various tasks. While outsourcing can bring a treasure trove of benefits like specialized skills, cost savings, and flexibility, it also presents its fair share of challenges.
Let’s find out about the most common problems of outsourcing and ways to deal with them from India’s leading manpower outsourcing company, Trendsetters Facilities and Technical Services.
What are some of the Outsourcing Problems, and how to resolve them?
Some of the common outsourcing problems as well as its resolutions are listed below:
Different Time Zones
Working with a team in a different time zone can cause problems like scheduling conflicts, delayed response, lack of time for collaboration, and employee burnout.
Solution:
- Clear Communication Rules: Make sure everyone knows how to communicate effectively.
- Overlap Work Hours: Find times when both teams can work together, or agree on specific hours for important tasks.
- Use Collaboration Tools: Technology can help bridge the gap between different time zones.
- Set Clear Expectations: Make sure everyone understands the goals and deadlines.
- Train Multiple People: Have more than one person who can do important tasks, so work doesn’t stop if someone is unavailable.
- Maintain Records: Write down important information so everyone can stay on the same page, even if they’re in different time zones.
No Outsourcing Experience
If you lack experience in collaborating with outsourced teams, adjusting your organization for this partnership can be daunting. You may feel overwhelmed by unfamiliar processes, concepts, and workflows. Communicating your vision to a new group, especially one you’ve never worked with, is challenging. However, you mustn’t underestimate the importance of understanding best practices and potential pitfalls in this collaboration.
Solution: Seek guidance from an expert vendor. They will help you overcome potential bottlenecks and mitigate any risks along the way. Assisting you in defining requirements and identifying suitable candidates for the task, they become indispensable allies in this endeavor. Outsourcing carries inherent risks, but with the right supplier, you can proceed confidently. A flexible partner will seamlessly integrate with your processes, enhancing rather than disrupting them. Leveraging their expertise and experience, they ensure superior results for your project.
Organizational and Cultural Differences
When businesses outsource their projects to other countries, they encounter two types of cultural differences: organizational and regional. Corporate disparities arise due to engagement between two different organizations, while regional gaps stem from the geographical separation between the business and the outsourcing services provider. These differences can significantly impact various aspects of your business, including team communication, understanding, and productivity. Misconceptions and conflicts may arise between the teams due to cultural disparities.
Solution: Both the client and the outsourcing service provider must organize a training program to educate their respective employees about each other’s organizational and regional culture and norms. This will lead to greater collaboration, productivity and overall success.
Unrealistic Expectations
It is quite natural to expect certain outcomes when hiring an outsourcing service provider. However, expecting that the vendor will do everything for you and complete the project quickly is not only unrealistic but unfair. It leads to unnecessary friction and frustration between the client and the vendor.
Solution: It is best to inform the company’s top management team, the customers, stakeholders and employees about the reasonable risks of an outsourcing project, the potential costs and the mitigation strategies. Choose a vendor who will match your project requirements.
Data Security Threat
When you outsource, you risk exposing sensitive data to third parties.
Solution: Protect your data by signing enforceable contracts like non-disclosure agreements. Ensure the outsourcing firm follows strict data rules to reduce the risk of breaches. Tighten security measures, use encrypted communication channels, enforce access controls, and conduct regular security audits to safeguard your information.
Now that you understand the common problems of outsourcing and their solutions, remember to prioritize clear communication, seek expert guidance, bridge cultural gaps, set realistic expectations, and safeguard data for successful partnerships.
