3 Outsourcing Mistakes That Will Ruin Your Business

February 26, 2016

4:00 pm

I know you’ve heard those “outsourcing horror stories” before – they’re all over the web. A business outsources their customer support arm to a company offshore to lower their cost, only for their customers to be mishandled causing them to lose their customers’ trust. Others had their brand image tarnished because of how the offshore company’s agents poorly managed the calls.

Frustrating? I know. We can only imagine the horror that these companies had to go through; however, what we’ve just talked about so far is just one side of the coin. How about the benefits of outsourcing? Studies have shown how organizations tend to get 15 percent in reduced cost through outsourcing. Imagine what you can do with the 15 percent savings if you use it to improve your product, boost your marketing budget, or perhaps in R&D among others. And if that isn’t enough, you can also benefit from staffing flexibility, operational control, reduced overhead, and increasing your business efficiency – all of which are crucial to taking your business to the next level.

Instead of you getting paranoid about outsourcing and missing out on the plethora of benefits that it can bring to your business, why don’t you allow me to share with you the three outsourcing mistakes that you should do away with. That way, you can avoid experiencing the same horror stories that the other companies did.

Alright. Let’s hop right in.

1. Choosing a BPO company based on who is the cheapest.

“To give your customers the quality support that they deserve, you need to have qualified staff, experienced management and the physical and technical infrastructure necessary to make that possible.” – Mark Shapiro, CEO of EBCallCenter.com

You’ve heard of the old adage, “You get what you pay for”, right?

You’d better believe it, because this statement rings true especially when working with BPO companies offshore.

Other agencies will offer you a meager rate of 3 USD per hour, while other companies will offer you 10 USD per hour. Don’t just go for the former without blinking an eye. Those who offer the cheapest rates tend to produce the crappiest results.

That being said, do your own digging and compare what each company is offering. Check their credentials, their hiring process, the kind of infrastructure they have, and even their QA system (among others).

2. Communicating with your vendor ONLY when there’s a problem.

I take vitamins everyday. I don’t care whether I’m away on a business trip, or on a vacation with my family on a small island, hours from our place. I take the vitamins religiously – no questions asked. I do so for the obvious reasons – to strengthen my immune system. You’re probably just as religious as I am in taking vitamins, aren’t you?

You see, you might not realize it but regularly communicating with your vendors is the outsourcing “vitamins” that you need to take to strengthen your business’s immune system: your business process.

When you communicate regularly with your team offshore, you are able to optimize your business process, and equip your team with the business knowledge that they need to succeed in their tasks.

Of course, this translates to your team producing amazing results and getting them aligned to your company’s culture.

3. When business owners neglect training.

According to Justin Ferriman’s article at Learndash.com, “analysis showed that training geared for sales and marketing professionals resulted in 24% higher profit margins and an increase in sales of up to 6.5%.”

The figures are mind-blowing, aren’t they? You should realize by now how important training is for your offshore team.

Besides, if you think investing in training your team is expensive, wait till your customers start disappearing because of your inept team.

Remember the horror stories? Training your team to obtain the skills they need to do their jobs effectively can help prevent just that. In addition to prevention, it can help skyrocket your team’s productivity, and it allows your team to keep up with the industry changes.

What’s next?

Have you been outsourcing some of your business processes to offshore companies? What tips that you can share to the community that will help them succeed in their outsourcing endeavors? Please take the time to share your tips in the comments section below.

Did you like this article?

Get more delivered to your inbox just like it!

Sorry about that. Try these articles instead!

Jimmy Rodela is a Freelance Writer and a Content Marketer. He is the Owner of the Guild of Bloggers.

He is a contributor on websites with millions of monthly traffic like Yahoo.com, Business.com, Monster.com, Business2Community and SocialMediaToday.com.

Follow him on: LinkedinTwitterFacebookGoogle +,Read more about me

  • Shares

Leave a Reply

  • (will not be published)
Startup_Mixology_300x250
.ME Tech.co search 300x600

Get personal with .ME

Make your domain name as unique and memorable as you are. Get creative, get .ME!