Why cost saving should not be the only factor while outsourcing

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The real rewards of outsourcing a business process to an offshore location are easy access to the required skills and timely delivery of services. If you focus only on cost saving, you won’t be able to enjoy these rewards.

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Why cost saving should not be the only factor while outsourcing

  1. 1. Why cost saving should not be the only factor while outsourcing
  2. 2. Cost saving should not be the only factor while outsourcing a business process because:  You may end up hiring an incompetent vendor  Inefficient performance may adversely affect your business  Cost saving comes after the success of the outsourced process  Preoccupation with cost saving may defeat the whole purpose of outsourcing
  3. 3. You may end up hiring an incompetent vendor  Many vendors lure clients by offering ridiculously low rates  Instead of falling in this trap, you should go for the competency of the vendor  If you only go for cost saving, you are no longer able to focus on desired results  When desired results take a back seat, you end up hiring the wrong vendor
  4. 4. Inefficient performance may adversely affect your business  If you concentrate on cost saving, the vendor will do likewise  The instances of inefficient performance will shoot up  This situation is detrimental to the quality of your products and services  As a result, your end customer is unhappy and eventually your business suffers
  5. 5. Cost saving comes after the success of the outsourced process  Cost saving is an attribute that can only be calculated after successful completion of the project  Cost saving does not mean anything if you do not get the desired results  So, always concentrate on achieving the desired results before calculating the cost savings
  6. 6. Preoccupation with cost saving may defeat the whole purpose of outsourcing  The purpose of outsourcing is to get easy access to well qualified human resource  So, your focus should be on the availability of skill sets and the service delivery model  If you focus only on cost saving, you will lose this focus  This lack of focus on the real rewards of outsourcing may defeat the whole purpose of the exercise
  7. 7. Thank You Know more ways to get the desired results through outsourcing

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