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Top 7 outsourcing mistakes to avoid

This article is a submission by Guerilla Staffing Solutions. Guerilla Staffing Solutions is a family-owned business headquartered in the Clark Freeport Zone, Philippines. It has grown to serve markets in Canada, the United Kingdom, the United States, New Zealand, and Australia.

As a business owner, it is normal in the early years to be hands-on with your business. In fact, at this time you can barely recognize how much time you spend being an accountant, customer service, telemarketer, account manager, etc– all in one.

However, as the business grows, everything becomes overwhelming and it becomes difficult to squeeze time to do tasks in each department. 

This might make you consider looking to outsource with a third-party service provider to offload some of the tasks to them, so you can focus on the things that require your most attention.

Outsourcing can offer you several benefits which include cost savings, increased flexibility, improved efficiency, and access to specialized talent. You can easily streamline your business and be one step ahead of the competition. 

However, first-time outsourcers may be bound to encounter outsourcing mistakes. Read this article to help you recognize these mistakes and find ways to avoid them.

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Top 7 outsourcing maistakes to avoid

Top outsourcing mistakes to avoid in your outsourcing journey

To help you avoid falling prey to the common mistakes that most first-time outsourcers often make, we made you a list of the top outsourcing mistakes to avoid — especially when you’re just starting with your outsourcing journey.

Let’s get started.

Outsourcing mistake #1: Not knowing what to outsource and lack of clear objectives. 

Before you start outsourcing, you need to have a solid game plan.

This is one of the most crucial aspects that most businesses forgot to consider which later on becomes the major hurdle for their outsourcing success journey

First thing first, you need to have a crystal-clear understanding of which and what business function you want to outsource.

Additionally, having defined goals, objectives and expectations right from the start will help you and your outsourcing partner to be aligned, and build a solid framework for collaboration. You can also avoid experiencing problems like miscommunication and unsatisfactory results.

Pause for a moment, try putting everything behind you and start outlining what are your expectations in this outsourcing partnership, your goals, deliverables, and performance metrics.

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Outsourcing mistake #2: Ignoring cultural differences

Cultural differences can significantly impact the success of an outsourcing engagement. Failing to consider these differences can lead to misunderstandings, conflicts, and a communication breakdown.

So, once you’ve found a third-party outsourcing provider, make sure to communicate with them in advance about things like your culture, communication style, work ethic, and time zones.

Additionally, give them time to understand and appreciate your cultural nuances to foster effective collaboration.

Outsourcing mistake #3: Neglecting contract details

Have you ever heard of the saying ‘Never sign a contract without fully understanding what it is all about’? The outsourcing contract is a crucial document that binds and outlines the terms and conditions of the whole outsourcing partnership.

It’s like a roadmap that guides both parties towards a smooth-sailing outsourcing success.

Failing to understand these critical aspects such as service-level agreements, pricing structures, intellectual property rights, and termination clauses can result in unforeseen costs and complications down the road, and we want to avoid those bumps right off the bat.

Top outsourcing mistakes to avoid in your outsourcing journey

Outsourcing mistake #4: Poor project management

It is true that once you outsource a certain business function, you can entrust them that they can do the job better.

However, it is important not to simply let things run on autopilot. Why? Simply because failing to monitor the progress, review the work, and provide feedback can potentially put your business at risk.

While your offshore staff possess the skills and expertise but still, you need to stay engaged. If you find yourself in a situation where you’re not receiving any updates or deliverables from their end, then there is something wrong.

Outsourcing mistake #5: Unrealistic cost expectations

Cutting costs is often one of the driving factors in outsourcing decisions, but focusing solely on the cost without considering the quality of work provided can be a detrimental mistake.

While cost efficiency is important, it’s equally critical to consider the level of quality you will get out of that certain partnership. Setting unrealistic cost expectations may result in poor-quality deliverables and unsatisfactory outcomes.

Instead, what you can do is find that sweet spot where cost and quality meet and strike a balance between them. Further, don’t forget to consider the long-term value your outsourcing partner can bring to your organization.

To avoid this common outsourcing mistake, try this Outsource Calculator. This tool provides transparent pricing and packages for your preferred roles — all for free!

Outsourcing mistake #6: Not evaluating your results

As a business owner, your evaluation of the service and the result your business is receiving is important.

Ask questions like: Are you getting the level of service you expected? Are you meeting your goals? Can help you determine if the delivered service or outcomes meet or fall short of your expectations.

If you ever find it not living up to your expectations, it’s a clear indication that adjustments might need to be imposed. Don’t be afraid to have honest and open conversations with your outsourcing partner, share your concerns, discuss areas that need improvement, and work together to find viable solutions.

Trust your instincts, and let your evaluation guide you towards making informed decisions.

Outsourcing mistake #7: Neglecting relationship building

Viewing outsourcing as a mere transactional arrangement without investing in building relationships can hinder collaboration and long-term success. Eventually, this can  lead to missed opportunities and suboptimal outcomes.

Instead, why don’t you think of it as planting seeds that will, later on, grow into fruitful partnerships?

By investing time and effort in building relationships, you are establishing a strong foundation for trust, mutual understanding, and effective communication. These pave the way for better collaboration, problem-solving, and aligning goals and strategies.

It’s like you’re adding an extra layer of synergy to your business.

Top outsourcing mistakes to avoid in your outsourcing journey

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Partnering with Guerilla Staffing Solutions helps you can gain access to a pool of talented professionals — who are not only highly qualified but also passionate about helping and driving growth to the client’s business.

The firm takes its time to understand your unique requirements, ensuring that we match them, so you don’t have to experience hassle and instead can focus on matters that required your most attention.

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About OA

Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO).

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Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between world-leading outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 2,300+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.

“Excellent service for outsourcing advice and expertise for my business.”

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