Mistakes Organizations Make In Outsourcing

Industry News

Have you encountered already encountered these mistakes?

Outsourcing has become the norm in many businesses these days. In fact, according to Outsource Accelerator, 68% of US companies outsource their services. Also, outsourcing is not a choice limited to only big companies. For example, according to Clutch, more than 37% of SMEs outsource some of their business processes. Also, the numbers are increasing. 

However, despite the wide-ranging benefits outsourcing brings, like reducing cost and streamlining processes, it is inevitable, outsourcing mistakes do happen. As a business owner, it is crucial to know the most common mistakes companies do, to avoid them. Read on to find out four common mistakes in outsourcing. 

A confused woman in front of a laptop

No Clear Objectives

Many companies don’t have clear objectives when they start to outsource. In some cases, some even don’t know what they want to outsource. Not only was it a waste of money, but also a waste of time. Incorporate outsourcing in your business strategy. For example, what you wanted to happen, your expectations from the company, and your objectives. Be clear and don’t just hire an outsourcing company just because you wanted to reduce cost. Outsourcing is more than that. 

A rack of rotten lemons

Compromising Quality with the Cheapest Price

Another mistake companies make when they outsource projects or processes is they compromise quality for a cheap price. Although outsourcing brings in the benefit of reducing operational costs, it should not be limited to only that. Not only will it reflect badly on your company, but it can also affect your branding and competitiveness in the market. 

Compare different companies and their offers and check their past works to ensure quality outputs. 

An arrogant boss

Will Not Listen to Feedback and Suggestions

Another common mistake is, some businesses won’t listen to feedback and suggestions. This practice is a no-no, not only in outsourcing but also in other aspects of a business. Moreover, it is such a waste because most outsourcing firms have experts working for them. So why not make use of that expertise to help your company grow? Discuss with your outsourcing firm or freelancers how to improve your business processes or projects. 

A boss shaking hands with an employee

Skipping the Interview Process

Last but not least is skipping the interview process. When companies hire new employees, they usually have to undergo interviews to know if they’re a perfect fit for the company. Depending on the company’s needs, some choose outsourcing firms that offer the cheapest price. Some choose famous names from a specific field. Although this is fine, it would still be better to interview to ensure you can work well with your service provider. For example, if you’re going to work with an offshore company, you also have to work on the cultural differences.