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Analysis and Insight from Savvycom Team.

Outsourcing is efficient when it is conducted properly. The problem with outsourcing relationship is that it’s easy to make mistakes, and once mistakes are made, they are costly to fix. These are several common types of mistakes that an outsourcing relationship can step in:

Goals and capabilities mismatch

Outsourcing is considered successful when your goals are perfectly suitable with the capabilities of the service providers. It’s necessary for the involved parties to have a clear understanding of each other so that they can evaluate whether they could collaborate or not. If goals and capabilities differ, outsourcing can turn out to be a burden rather than a solution.

Outsourcing your weaknesses

Not being good at something is never the reason to opt for outsourcing. Don’t forget that as you have the duty to manage and control the outcomes of the outsourcing plans, you should only outsource when key management metrics, procedures and KPIs are well comprehended.

outsourcing common mistakes

Underestimating the role of communication

An outsourcing relationship in which roles are not well defined, strategies are poorly set up and cultural differences are not considered will fail. Transparency is the key to avoid misunderstanding and ensures that each party follows the workflow without unwanted barriers.

Not setting measurable objectives

Another common oversight of outsourcing is that objectives are not set up in a measurable way. A vague plan with no clear deadlines will lead to postponement and arguments. Remember to have all parties agree on common work scope and deadlines so that your projects can proceed and succeed.

No contingency plan

Business is never an easy place to work in, especially in the contemporary situation. Your business may easily fall into extreme risks if you’re off guard. You should evaluate possible risks, thus preparing plan B, or even C if necessary to deal with them. It’s good if they don’t come true, but if they do, your projects wouldn’t need to take a sudden twist.

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