Risks of Outsourcing

Businesses who lack the in-house capabilities of certain expertise tend to find themselves looking for offshore providers. Sometimes a business is cutting costs in order to protect their bottom-line. No matter the basis for outsourcing jobs, the offshore providers may not meet the business needs. Many jobs can be outsourced, and while the benefits of outsourcing may be appealing, outsourcing comes with significant risks. In most cases, the risks of outsourcing outweigh the benefits and vice versa.

Finding a reliable outsourcing provider is time consuming, because most employers spend most of their time weeding out the unqualified providers. While most employee-seekers eventually find out the ins-and-outs of outsourcing, they go through a tedious period of trial and error. Fresh outsourcers would be better off knowing the metrics of how to choose a reliable provider. Resources, time, and money could be wasted if one does not know what to look for in a provider.

One key risk of outsourcing projects is the loss of control a business has over their resources. When businesses outsource a branch or call center offshore, the business loses their regulative capabilities to oversee the efficiency of providers. When a business uses outsourcing companies to handle customers, it becomes the responsibility of providers to maintain a satisfactory level of retention. Some providers may not have the same level of commitment to the company. Customers, providers, and outsourcers are often subject to clashing due to the differences in culture. The provider may raise suspicion amongst customers about their work ethics and obligations.

The most common downfall of outsourcing is a provider quitting in the middle of a job or does not have the time to commit to the goals of the company. Outsourcers and internal staff members have elementary differences in attitude, goals and motivation. There are differences in the skill level of in-house employees and external employees. The viability of a provider is not always checked into thoroughly by the outsourcers. If outsourcers inquire into the providers portfolio, past employers, and skill-sets; the outsourcers potentially mitigate the damages and delay of their business goals.

There are many great BPO companies that can provide guidance and assistance to help you find the best way to either improve your business or outsource the areas of your business that are using a lot of your resources and finances.