Why outsourcing fails so often?

Offshore staffing so frequently fails. So many walk away disappointed. People blame lousy quality work, poor language skills, and unreliable attendance.

Yet, Apple, Facebook, JP Morgan, and Nike all outsource, and the industry is worth $300 billion and employs millions. So it clearly works for them. Why do so many small businesses walk away disappointed?

There are a lot of reasons for this

  • Expect too much for too little
  • Focus on saving cents instead of paying more and saving dollars
  • Need broadly capable generalists instead of specialists
  • Rely on highly capable unicorns instead of having robust systems and structures
  • Cost versus friction matrix
  • Communication and cultural differences
  • Poor home-based conditions
  • First-time employers are still figuring out a lot of the processes themselves
  • Business is tough, and building a successful one is not easy
  • Wrong hire – it happens. It’s a numbers game

There are a lot of factors. A lot! So when something fails, it is sometimes hard to unpick the reason for it happening. But usually, it is not too hard to find the reasons for failure.

Offshore staffing is basically a close relative of employment. And employment is the core foundation of running a business. It is complex. But it’s not rocket science.

Why outsourcing fails so often

People are quick to give up on offshore staffing. After trying 1-2 staff, they declare that ‘all of outsourcing is broken’ and assume that the entire 110 million population of the Philippines are incapable.

It does work. And you can save 70% on costs.

You might not get it right at the beginning, but it is worth pursuing. Just like learning a new language or sport, it might take you some time to reach mastery – but it’s worth it.

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Philippines United Kingdom Australia United States
Software Developer
$7,221
$39,913
$62,653
$81,994
HR Manager
$9,506
$46,669
$66,518
$78,007
Team Leader
$7,152
$31,174
$45,428
$75,823
Accountant
$5,959
$58,479
$67,190
$72,923
Copy Writer
$4,767
$52,088
$56,600
$62,653
Customer Service
$3,337
$22,137
$29,717
$35,275
Virtual Assistance
$2,285
$39,066
$42,240
$31,797
Select a role to view salaries
Philippines $7,221
United Kingdom $39,913
Australia $62,653
United States $81,994

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About OA

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

The #1 outsourcing authority

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.