Common Outsourcing Mistakes
Outsourcing has been a game-changer for many companies during this recession and it will definitely play an important part in the post-recession world. We discuss the importance of outsourcing here. The benefits are plain and simple for all to see. Save money, increase efficiency, and access expertise you don’t have in-house. If you have gone down the outsourcing route, there are some key and common mistakes that you need to avoid. Here, we address the most common mistakes businesses make when outsourcing and how you can avoid them.
Lack of Clear Objectives
Probably the most common mistake most businesses make when they first start outsourcing is not outlining their expectations clearly to the vendor. When outsourcing, it’s important to know exactly what objectives you want to achieve and how long it’ll take to achieve those goals. You don’t want to leave it to the vendors to assume anything. If you do, this could lead to unexpected delays and a whole lot of frustration, not to mention wasted resources.
Before assigning any work to your outsourcing partner, review all the details of any agreement or contract so everyone’s on the same page about what’s expected. When assigning work to vendors, make sure to clearly define the scope of the work, deliverables, timelines, and budget of each project. Don’t leave out any important detail that could be crucial to the completion of the project. Have regular meetings to stay in the loop and provide any necessary feedback. By taking the right measures, everyone stays on the same page and you avoid wasting time and money.
Another major challenge of outsourcing is simply not having enough experience with it. It can be overwhelming to work with an external team that has different workflows, practices, and concepts. Communicating your vision to someone you've never worked with before can also be a difficult task.
The solution to this challenge is to work with an expert vendor that can help you avoid any potential pitfalls and mitigate risks throughout the process. A good vendor will help you define your requirements and identify the best candidates for the job. Remember that outsourcing can be risky, but the right supplier will be there to guide you every step of the way.
At ProSolutions, we make it a priority to understand our clients' business needs and requirements. We work closely with our clients to identify potential risks and encourage them to start small and scale as needed.
We can’t stress this enough so we’ll say it again: COMMUNICATE. Just like any good relationship, communication is key. Similar to lacking clear objectives, a lack of clear communication results in misaligned expectations, misunderstandings, and disappointments. Without clear communication, your vendor might lack the crucial information required to complete a project, leading to a loss of time, money, and a whole lot of frustration.
The great thing is that avoiding a lack of communication is very easy. From the get-go, be on top of what you want your vendor to do and let them know. Give them all the details they’ll need to complete the project and let them know exactly what you expect. Schedule regular calls to receive updates and give feedback, and make sure to document all the agreements so both parties are held accountable. This way everyone’s on the same page throughout the process and you’ve minimized any risks of delays.
One of the things a lot of businesses fail to take into account is the cultural differences that exist between them and their vendor. Remember, certain cultures have completely different ways of working. Communication styles, working hours, and problem-solving strategies can all differ significantly from one culture to the next. Not understanding these differences can cause problems and affect the success of projects. A lot of vendors may work in different time zones, making communication during regular working hours difficult. Work around this by planning and scheduling meetings at times that are convenient for everyone.
Make sure to keep in mind that some countries really value certain holidays and productivity during those days may not be the same as the rest of the year. Failing to respect these differences can result in tension and an uncomfortable working environment, leading to poor productivity and subpar results.
On the other hand, respecting these cultural differences shows that you care about the vendors as more than just employees but rather as humans. A happy set of employees will always be more loyal and strive to do their best work. Make sure that both parties are comfortable with project parameters like communication styles and deadlines. Once again, document all the agreements in writing to hold everyone accountable just in case cultural differences become an issue.
Failure to Vet Vendors
This might seem a bit obvious, but take your time to vet each vendor you’re considering before making a final call. You’d be surprised at how often businesses rush into this crucial decision and then have deep regrets. Rushing into hiring a vendor can result in poor organization and results. Without doing the proper due diligence, you run the risk of hiring an under-qualified vendor that won’t take the necessary measures to protect yourdata.
Before selecting a vendor to work with, create a comprehensive list of requirements for any potential vendor. This should include all the necessary information that you’ll need to make an informed decision, including vendor qualifications and examples of projects that have been successfully delivered. Make sure to ask for references and do in-depth research on the vendor before committing to anything. As always, make sure to read all the contract details carefully to ensure that everyone’s on the same page about roles and responsibilities. There’s no such thing as being too careful when it comes to the safety of your data. Taking your time to make an informed decision will ensure you work with a reliable vendor that delivers high-quality results.
Running a business is tricky and one of the best ways to make life easier is to outsource work to reliable vendors with the necessary expertise to deliver high-quality projects. That’s where we come in. At Pro Solutions, we specialize in providing services that will reduce your costs, increase efficiency, and drive growth to your business. Our Pros provide expertise in back-office outsourcing, sales, content and image moderation, and content writing. Avoid the mistakes we’ve mentioned in this article by trusting us with your business needs.