Outsourcing can be a significant part of any business, as long is implement well. However, occasionally you will face particular risks and challenges when managing and negotiating outsourcing relationships.
If you aren’t familiar with this term, outsourcing means placing one part of your services or job functions to a third party, while companies may choose to outsource their services onshore and offshore. On the other hand, with this type of management system, you can experience specific problems with outsourcing.
In this article, we will discuss common issues but also propose some solutions on how to overcome them.
A lot of businesses have a certain expectation of how things should work in theory. Unfortunately, they don’t work as smoothly as in practice. By implementing the outsourcing business model, a service provider should help your company boots function and efficiency, but this doesn’t always happen right away.
Both parties need some time to adjust to new conditions and find the best ways to work together. To overcome this issue, you need to go through a transition period and expect a couple of rough patches. Therefore, when establishing business objectives, make sure to build this into your timeline.
Outsourcing will undoubtedly have an impact on your corporate culture. However, many companies fail to notice the potential clash between outsourcing service provider’s company culture and their own.
But, you can fix this problem if you spend some time to understand their organizational culture and their business model. In this way, you will be able to identify values and policies that could disrupt your working relationship. Keep in mind that both parties will have to be engaged in this process and find a balance if they want to have a successful business relationship.
This is probably one of the most important things when it comes to outsourcing. In order to perform a job, you need to understand the project. Therefore, this entire process will not only help you estimate the costs but also help you discover the necessary skills the person you plan to hire needs to have.
For that reason, you should write down transparent and descriptive explanations of the project. Also, you could record instruction while performing the task you plan to outsource. There are a lot of programs that can help you make a quick video since it doesn’t need to have exceptional quality, just to point out details.
Not estimating costs
When it comes to costs, it’s better to break down the task into parts and see how much time it will take. In that case, you can run down the costs and see how much the company or person charges per hour. You most certainly don’t want to hand a bunch of assignments to someone and then get ambushed when you receive the bill.
Or the worst-case scenario, you could incorrectly assume they took too long to finish the project.
For that reason, if your task requires extensive knowledge and specialized skills, then take some time to explant everything in detail instead of having them second-guessing your project.If there is no hourly rate involved, then ask for an estimate of the total project cost.
Decide who hold the authority
Who gets to make decisions is a common source of disagreement. For instance, internal employees often believe that they hold the authority and decision rights, while on occasion, some of those rights are passed to a service provides, which can be part of the outsourcing agreement.Therefore, to avoid further quarrels and potential problems, companies and outsourcers should come up with a clear understanding of who has the authority over a particular project.