Outsourcing opponents sometimes like to add dirt, heated argument and criticism about outsourcing ventures that may have not worked for them. However, you can look at this from a business perspective so that a buyer of service can understand that being in a business takes some risks. And outsourcing is no different.

There are more success stories than failures that came out of outsourcing. Many would say that outsourcing has been an effective way to cut costs and improve productivity. But do you know that some buyers failed to know or never realized that a failed outsourcing deal may have resulted because of a misguided and poorly governed deal on their part?

Here are 5 causes why failures occur in outsourcing:

1. Poor Communication: Some buyers of BPO services only focus to the end result. This won’t work if the outsourcing partner is not given sufficient details. Mails requesting information are not given attention. Calls are not returned to answer clarifications. And the outsourcing provider is at the risk of being labeled incompetent; those result to failure of outsourcing.
2. False Assumption: The clients who look at outsourcing as a quick fix for their problem is a huge failure in the first place. Cost cutting is a very realistic factor but wanting to get things done as soon as possible is not. Outsourcing is not at all about getting affordable services as fast as you can. It is about getting the professional service, the skilled in the niche, and a high quality result. It must be given enough time to have adequate planning and collaboration. Overseeing the project in progress is very useful to arouse interest on both sides to prevent failures of outsourcing.
3. Cultural and Geographic Differences: Both buyer and service provider can avoid failures of outsourcing if they communicate with the same language (English preferably). Philippines is located in a favorable geographic location in connection with the western counter parts where service providers can work at day time while their clients are sleeping at night. Clients get work delivered as they start work in the morning.
4. Lack of Distinct Outline, Scope and Desired Schedule: An outsourced project to be successful must be presented by the client with a clear overview; what must happen and when it should finish with a realistic schedule. You don’t expect your outsource partner to do the work without delivering their required materials.
5. Inadequate Evaluation of the outsource partner’s records:Some outsourcing clients jump into the pit just to get the lower rates without finding more about skill, experience and credentials of the provider. Understanding your outsourcing partner can be acquired through the projects completed which probably match your needs. Checking the portfolio is necessary; the showcase of the work. Make sure you get a professional with a reputation on the service you need and who understands your business.

A Reminder to clients who need to outsource

Outsourcing becomes a failure only when you assign all the work to your outsourcing partner and you don’t make it an obligation to yourself to supervise and check on the progress of the project. Your aspiration to succeed is also the aspiration of your service provider to meet your expectations; so it is not fair to blame anybody when you have not done your part squarely.

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