Business & Finance Outsourcing

Outsourcing: Dealing With Reliability Issues

While thousands of companies around the world have long found offshoring or outsourcing to be a great way to get the job done on time, at the quality they require, and at a fraction of the cost if it was done onshore there are some companies that are taking careful, tentative steps towards outsourcing.

Its not a bad thing to be cautious. In fact, I would recommend that you deal with outsourcing in a cautious manner to make sure that your companys interests are protected at all times. Get as much information as you can about the aspects of offshoring that are making you think twice. The more you know about the disadvantages, the more you can learn about the ways to eliminate or reduce the effects of the disadvantages.

One the disadvantages that can make some companies think twice is the possibility that the service provider would fail to deliver on the agreed-upon deadline or at the quality that the company requires. In some, if not most, cases, your company will have to suffer the consequences of the delivery failure.

So if you are going to outsource, you should make sure that you have this possibility covered. Here are some suggestions:

1. Include penalties and other similar measures dealing with this kind of failure in your contract with your service provider.
2. Establish expectations with the service provider. This should be done as early as possible. Communicate the deadlines and the quality that you expect. Make sure you are on the same page with your BPO firm from day one.
3. Discuss the timelines for each task or project and set clear deadlines.
4. Create performance monitoring systems and Service Level Agreements (SLAs) that also address delivery dates and quality expectations
5. A performance monitoring strategy should be created with not just employee productivity and motivation but also with consistently meeting the deadlines and maintaining quality in mind.

This is a reliability issue that should be addressed right at the start of the process:

1. Find the most reliable service provider that your outsourcing budget can afford.
2. Dont hire the first BPO firm you come across. Check out as many as your time will allow. At least four service providers would be fine. Compare the services and rates of these service providers.
3. Consider the top outsourcing hubs or destinations such as the Philippines which is the leader in the global outsourcing market for voice services and the second leading provider of non-voice services. You have a better chance of finding a reliable service provider in these top destinations because they have more experienced and sought-after BPO firms.
4. Go for the outsourcing firm with the best combination of talent and outsourcing fees.
5. Check out the background and track record of your potential service providers. Try to find some past clients and ask for honest feedback. You should not find too many complaints from past clients.
6. Consider the firms standing in its industry and if it has been in business for a good number of years. If the BPO company is relatively new, find out if it has impressive staff and management.


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