Everything in this world has 2 sides and outsourcing is no exception to the rule. Though certain things about outsourcing can give you edge over your competitors through cost efficiency, scalability, availability of skilled talent pool, focus on core business and many more, there are certain areas, which if handled correctly, can reduce the risk involved in the business. Here are some do’s and don’ts for you to be prepared before you set your foot into your next venture.
1. Focus on Core Business
The most vital benefit of outsourcing is that you get to focus on the most challenging part of your business more, by lending out your secondary business processes to your outsourcing vendor. This makes you invest more time in your core business activity.
2. Cost Efficiency
Outsourcing has biggest advantage of contributing to your bottom line – profits. Due to the availability of skilled resources and cheaper exchange currency rate, businesses can get the work done at relatively less cost as compared to doing it inhouse. It is estimated, depending upon the nature of business you are in, you can save up to 25% to 54% of your operational cost by outsourcing. This can help in other future investment in your business.
3. Quality & On-time Output
With Engineering graduates close to million, which contributes to a young and dynamic workforce, quality-focused and on-time work are sure to be at your disposal.
4. 24 Hours Work Cycle
One of the important advantages of outsourcing is 24 hours work cycle. Generally, outsourcing companies work in a different time zone than yours and that gives companies advantage of working round the clock. Just imagine, you left office with tasks assigned to your outsourcing partner and get completed projects in your inbox the next day.
5. Risk Sharing
By dividing your work process, you are reducing the risk factor involved in the business.
6. Knowledge Enhancement
With a talent-driven workforce, exchanging knowledge and ideas is a daily phenomenon. This helps in strengthening the bond between the two companies and taking the commitments lifelong.
1. Data Security
There is always a possibility of your confidential details getting leaked or stolen. Therefore, it is of utmost importance to choose an outsourcing partner wisely. Take time and do your research first!
2. Quality Control
There is a possibility that business partner does not thoroughly understand your need and may not deliver the project as per set standards. However, it can be addressed by putting in some initial efforts. Make sure, you brief them on every single update, standards, past experiences on similar projects etc, this can surely help you achieve quality outputs with some initial learning curve. Communication is the key, do remember!
3. Rise of Hidden Costs
The contract papers could turn out to be a turmoil if not read and understood properly. Go through all those fine writings that could get easily neglected.
4. Communication Errors
Are you able to recollect/retain the exact words spoken by your manager from your previous meeting and transfer it to your colleagues? Not exactly, Right? So how can you expect the information transferred from miles away could be retained and get implemented in the same manner? So, there can be some sort of miscommunication issues that can be solved with proper communication techniques and the ability to understand each other’s perspective clearly.
5. Losing control
It may so happen that due to time, culture and geographical differences you may not be able to give due attention to your vendors. But if you know exactly what are the key factors which you need to monitor during the project completion, and focus there, you don’t really have to worry about it.
India is the most promising vendor of your outsourcing business, because of the highly skilled and educated professionals. The picture of Indian outsourcing business is wide and crystal clear to the world, thus, when it comes to quality work, there is no competition to India in the global market.
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