ALL >> Business >> View Article
Top Five Mistakes People Make While Outsourcing

The recent recession made companies think twice about how they were doing business and most of these involved budget cuts. Outsourcing became more attractive as it is cheaper, it does not involve employer/employee taxes, and most are contractual. What resulted was a drastic drop in operations expenses was seen as a light at the end of the tunnel for companies operating near or in the red. However, outsourcing has many pitfalls and companies are just beginning to see some major mistakes that they could or could not correct.
Lack of documentation is the first mistake commonly made. When companies outsource, they mistakenly think that these manufacturers would be innovative and concerned about their products. However, more and more companies are realizing that the manufacturers are not innovative enough and neither are they concerned with the documentation of it as long as they could produce the numbers. Most of the time the quality of the products experience a steady decline and this could upset the major companies for they could not see how they are going to correct these. The growth of the major company is not the focus ...
... of the provider.
Lack of monitoring is another major mistake. Some major companies place their trust on the providers that wish to win a contract by bidding the low. This will tempt the companies into awarding the contracts, but at what cost? Most of the providers cannot keep up with their promises resulting to disappointing products and productivity. Most of the time, the companies not only get disappointed with the results, but they will be left with the task of untangling the mess created.
The third mistake that could be done in outsourcing is bringing down the prices. Some major companies think that they could reduce their costs by spreading their contracts thin to more providers at a fraction compared to outsourcing to just one or two. Unfortunately, this can result to unstable or lower productivity. Providers who win the contracts don't work together, instead, they only work on their own contracts, and some providers may not be able to produce at all.
The fourth mistake is a lack of maintenance on the contract. Because of the instability of the market forces, long term contracts are not very popular and some just give short term contracts of six months to a year. This does not make it profitable for the providers who like to have long term contracts. A yearly renewal of the contract may sound nice on paper, but it is unstable.
The fifth mistake is the honeymoon effect. Providers will always present a ‘best foot forward' in order to win a contract. Upon winning it however, some providers start to slip on their quality control.
If you are tired of outsourcing your work to freelancers who have no real regard for your work then check out virtual assistant services. With us you get a dedicated project manager overlooking your work with your freelancer. To know and read more please visit us at Offshore Ally.
Add Comment
Business Articles
1. Lucintel Forecasts The Global Wall-mounted Ac Ev Charger Market To Grow With A Cagr Of 22.4% From 2025 To 2031Author: Lucintel LLC
2. Technology Landscape, Trends And Opportunities In Global 3d Printing Photopolymer Market
Author: Lucintel LLC
3. Lucintel Forecasts The Global Smart Home Market To Reach $372 Billion By 2030
Author: Lucintel LLC
4. Second Marriage Matrimonial – Verified Matches & Free Registration
Author: Truelymarry
5. Core: Leading The Way In Managed It Services For Businesses Across London
Author: IT Management
6. The Role And Function Of A Collection Agency
Author: Bennett Carter
7. Understanding Debt Collection Agencies: What They Do And How They Affect Consumers
Author: Bennett Carter
8. How To Use An Smm Panel Effectively For Fast Social Media Growth
Author: Smm Panel
9. Essential Tips For Beginners And The Power Of Professional Editing
Author: Sam
10. How To Improve Field Staff Efficiency With Geolocation Tools
Author: TrackHr App
11. Building An Effective Energy Management System
Author: Jane
12. Internal Auditor Training: The Key To Effective Risk Management And Compliance
Author: Sqccertification
13. Why Accurate Accounting In Property Management Is The Key To Higher Roi
Author: Harsh Vardhan
14. Kaal Sarp Puja In Trimbakeshwar – Benefits, Process & Trusted Pandit Contact
Author: Pandit Milind Guruji
15. Data Entry Vs. Data Processing: What’s The Difference And Why It Matters
Author: Allianze BPO