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5 reasons of outsourcing failure
and their solutions
Why outsourcing is important
a) Helps in expanding business
b) Spending of company remains in control
c) Work is handled by industry experts
701 Fifth Avenue, Suite 4200, Seattle,WA 98104
+1.206.441.7760
sales@vcarecallcenter.com
Processes that are outsourced
a) Call center process (inbound and outbound0
b) Software development
c) HR services
d) Logistics
e) Manufacturing
Outsource right and win the race
701 FifthAvenue, Suite 4200, Seattle,WA 98104
+1.206.441.7760
sales@vcarecallcenter.com
Causes of failure in outsourcing
1. Communication gap
Reasons:
a) Cultural differences
b) Language barriers
c) Technological hurdles
d) Inability of client on presenting requirements to vendor
e) Lack of transparency in the contract
Cure:
a) Well planned meetings
b) Use of technology to communicate
c) Present detailed requirements to vendor
d) Receive regular reports from vendor
Outsourcing is a well-planned step
701 Fifth Avenue, Suite 4200, Seattle,WA 98104
+1.206.441.7760
sales@vcarecallcenter.com
2. Poor performance by vendor
Reasons:
a) No technological advancements
b) Unskilled workforce at vendor’s office
c) Lack of transparency in processes
d) Improper quality management
Cure:
a) Choose renowned outsourcing partners
b) Analyze proficiency of vendor’s workforce
c) Make sure processes are transparent from vendor’s end
Outsource responsibly to survive
701 Fifth Avenue, Suite 4200, Seattle,WA 98104
+1.206.441.7760
sales@vcarecallcenter.com
3. Unclear objectives of outsourcing
Reasons:
a) Making cost control the sole reason of outsourcing
b) Neglecting other objectives
c) Not examining the outcomes of outsourcing
Cure:
a) Analyze reasons as per company’s long term goals
b) Examine the outcomes of outsourcing
c) Go through case studies related to outsourcing
d) Consider other objectives like
e) Access to proficient workforce
f) Flexibility of process
g) Quality enhancement
Outsource to expand, not contract
701 Fifth Avenue, Suite 4200, Seattle,WA 98104
+1.206.441.7760
sales@vcarecallcenter.com
4. Improper transition while outsourcing offshore
Impact:
a) Rise in overall costs
b) Delay in the execution
c) Inefficient service
Cure:
a) Plan transition beforehand
b) Examine each component thoroughly during transition
Outsource! Grow! Repeat
701 Fifth Avenue, Suite 4200, Seattle,WA 98104
+1.206.441.7760
sales@vcarecallcenter.com
5. Losses due to unforeseen and rising costs
Reason:
a) Not forecasting the rise of outsourcing
costs in future
b) Outsourcing to a region without
examining its economy
Cure:
a) Predict the rise of costs and outsource
accordingly
b) Divide project and outsource to
different regions
Outsourcing is panacea if done right
701 Fifth Avenue, Suite 4200, Seattle,WA 98104
+1.206.441.7760
sales@vcarecallcenter.com
Vcare Call Center
701 Fifth Avenue, Suite 4200, Seattle,WA 98104
+1.206.441.7760
sales@vcarecallcenter.com

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Five reasons of outsourcing failure and their solutions.

  • 1. 5 reasons of outsourcing failure and their solutions Why outsourcing is important a) Helps in expanding business b) Spending of company remains in control c) Work is handled by industry experts 701 Fifth Avenue, Suite 4200, Seattle,WA 98104 +1.206.441.7760 sales@vcarecallcenter.com
  • 2. Processes that are outsourced a) Call center process (inbound and outbound0 b) Software development c) HR services d) Logistics e) Manufacturing Outsource right and win the race 701 FifthAvenue, Suite 4200, Seattle,WA 98104 +1.206.441.7760 sales@vcarecallcenter.com
  • 3. Causes of failure in outsourcing 1. Communication gap Reasons: a) Cultural differences b) Language barriers c) Technological hurdles d) Inability of client on presenting requirements to vendor e) Lack of transparency in the contract Cure: a) Well planned meetings b) Use of technology to communicate c) Present detailed requirements to vendor d) Receive regular reports from vendor Outsourcing is a well-planned step 701 Fifth Avenue, Suite 4200, Seattle,WA 98104 +1.206.441.7760 sales@vcarecallcenter.com
  • 4. 2. Poor performance by vendor Reasons: a) No technological advancements b) Unskilled workforce at vendor’s office c) Lack of transparency in processes d) Improper quality management Cure: a) Choose renowned outsourcing partners b) Analyze proficiency of vendor’s workforce c) Make sure processes are transparent from vendor’s end Outsource responsibly to survive 701 Fifth Avenue, Suite 4200, Seattle,WA 98104 +1.206.441.7760 sales@vcarecallcenter.com
  • 5. 3. Unclear objectives of outsourcing Reasons: a) Making cost control the sole reason of outsourcing b) Neglecting other objectives c) Not examining the outcomes of outsourcing Cure: a) Analyze reasons as per company’s long term goals b) Examine the outcomes of outsourcing c) Go through case studies related to outsourcing d) Consider other objectives like e) Access to proficient workforce f) Flexibility of process g) Quality enhancement Outsource to expand, not contract 701 Fifth Avenue, Suite 4200, Seattle,WA 98104 +1.206.441.7760 sales@vcarecallcenter.com
  • 6. 4. Improper transition while outsourcing offshore Impact: a) Rise in overall costs b) Delay in the execution c) Inefficient service Cure: a) Plan transition beforehand b) Examine each component thoroughly during transition Outsource! Grow! Repeat 701 Fifth Avenue, Suite 4200, Seattle,WA 98104 +1.206.441.7760 sales@vcarecallcenter.com
  • 7. 5. Losses due to unforeseen and rising costs Reason: a) Not forecasting the rise of outsourcing costs in future b) Outsourcing to a region without examining its economy Cure: a) Predict the rise of costs and outsource accordingly b) Divide project and outsource to different regions Outsourcing is panacea if done right 701 Fifth Avenue, Suite 4200, Seattle,WA 98104 +1.206.441.7760 sales@vcarecallcenter.com
  • 8. Vcare Call Center 701 Fifth Avenue, Suite 4200, Seattle,WA 98104 +1.206.441.7760 sales@vcarecallcenter.com