Winning Over Outsourcing Challenges

The current global trend is on outsourcing – IT, financial services, human resource, management, product supply and deliveries, both voice and non-voice. Most of the global companies see the cost-effectiveness of such arrangements with outsourcing companies. These non-strategic activities should be able to give tangible benefits to the business in terms of product and service efficiency, improved sales activities, among others. However, despite the many obvious benefits that go along with the concept of outsourcing, there are other challenges these outsourcing companies have to deal with in order to successfully deliver their commitment to the client.

While it is true that outsourcing has seen the growth of the industry to what it is now, many companies planning to take on outsourcing some of their activities are somewhat fazed by some concerns on risks posed by outsourcing:

• Security of data

This is an important and critical issue for companies who are contemplating on outsourcing. The service level agreement should have an explicit provision or clause on liability and accountability of the outsourcers with respect to handling, storage and securing vital business data and information. While you have no direct control over this concern, there should be legal parameters covering such incidences. The outsourcer should be able to demonstrate clearly on how this angle is handled by their people, what countermeasures are in place in case of breach of data security, etc. Any outsourcing company that has no clear policy on this matter is not worth your while.

• Customer satisfaction

Customers would normally know if their calls or inquiries are handled by outsourcing companies. The almost robotic and practised and learned responses are easy give away signs. Customers will have different take on outsourcing and it is important that the outsourcers are aware of what type of customers they will be dealing with – their needs and wants, their concerns and issues, etc. A thorough understanding of the business is very vital to the successful migration of the business activity from in-house to outsourcing.  

• Technology and other Business Infrastructures

Outsourcing companies should have the required technological platforms and facilities to carry out their implementation processes – excellent communication facilities, banking systems, legal system (to take care of data security and intellectual property issues), all linked and connected together to allow for fast and smooth operations. Equally important are conducive office environments where outsourcing personnel will be motivated to perform according to the required expectations. Any global company will be comfortable entrusting the business activities to the outsourcers that give attention to these concerns.

• Communication and language gaps

This is very critical for companies entrusting their business activities to outsourcers as there should be clear understanding of the needs and wants of the company and the methodologies and implementation processes of the outsourcers. Failing this will definitely result to unresolved conflicts and undelivered commitment.

When these challenges are overcome and met with resolute approach, more businesses and companies will turn to outsourcing to improve their business performance. Having said this, it must be remembered that different businesses have different needs. If the challenges outweigh the advantages of outsourcing, then a re-thinking may be necessary as to the appropriate options to take. Ultimately, the decision is for the business owner on whether outsourcing is beneficial and good for the company or not.