Signs It’s Time to Change Outsourcing Firm

Industry News
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Outsourcing has proved itself to be beneficial not only for big companies but also for SMEs and startups. In fact, many successful companies now have shared how at the onset of their business, they have used outsourcing to launch and lift themselves in the market. For example, Alibaba’s Jack Ma outsourced help outside China due to the lack of talent in his country. Another business, Slack, the now-famous work communication program, had also used outsourcing to help them launch to success. However, as in all things, not everything is perfect in outsourcing, and there might be instances a partnership might not work well. In that case, maybe it’s already time to consider continuing working with a firm. Although it is more prudent to work things out first, there are also times when a company needs to make a decision when to finish everything. Read on to find out signs it is time to change your outsourcing partner. 

An excluded co-worker

Lack of Communication

The first sign you have to take note of is if the outsourcing company is not communicating enough. Communication is such a vital factor in business partnerships. In fact, an Outsourcing Center study found out that 25% of more than 300 buyers in North America, Asia, Europe, and India believe poor communication a reason for project failure in outsourcing. Moreover, if your outsourcing partner is not communicating with you, it can result in disaster because it’s like walking blindly. You don’t get enough updates, data, and feedback that can help you make better business decisions that are related to your outsourced functions or projects.

An employee bombarded with work

Too Many Meetings

Too much of anything is not good. For example, lack of communication is a problem, and so are too many meetings. In fact, one of the reasons you probably chose to outsource is to delegate tasks so you can focus on the more strategic parts of your business. Regularly meeting for updates and review is fine. However, too much of it is not. It might also mean that not everything is going smoothly with the outsourcing firm. 

A frustrated employee in front of a computer

Eroding Business Performance

Another telling sign you have to change your outsourcing partner is if their performance is constantly eroding. Of course, businesses too have their ups and downs, and problems are inevitable. If it’s not that bad, work together with your outsourcing partner. 

However, if their performance keeps getting worse and you think there’s nothing else both parties can do. Maybe it’s time to consider changing your service provider. 

Two employees exchanging payment

So Many Budget Raise

It is not a good sign if the outsourcing company keeps on asking for a budget raise. Of course, it is not inevitable, which is why it is wise to ask for justifications when these kinds of things happen. However, if it is becoming more frequent and justifications are becoming too vague, maybe you should start reconsidering your contract with the outsourcing firm.