Offshoring mostly aims cost-cutting, but businesses that create real sustained value regularly outsource for far more strategic ends- to hire talent that they don’t have in-house, or to power capabilities they do have.
Here are the 5 most common mistakes that first time offshore hirers make, and probably you may prevent making one yourself.
Focusing on Cost-Cutting, Not the Talent and Value
Sometimes new outsourcing managers do not consider the importance of overall value and real talent, and overemphasize labour cost. Moreover, for cost savings they overlook the complete picture and all crucial factors including brand reputation for work quality, client satisfaction, opportunities for improvements and growth and more.
Expecting Everyone to Fit in your Culture
Perhaps you try lead your outsourced team members in the same way as you do to your onshore team. But it may not work as you should keep in mind that there are many differences including culture, communication style and working habits. However, adapting to culture isessential for youboth; trainingis a key. You both need to identify and embrace the differencesin order to builda good relationship required for effective outsourcing.
New offshore hirers may underestimate the time and effort required to outsource the task perfectly. Mostly they are not very clear about the scope and expectations of the outsourcing efforts.
Probably the most essential thing to ensure a good outsourcing relationship is – a smooth flow of communication between the client and the service provider. Mostly offshore managers fail to lead and manage outsourcing efforts due to communication problems. Their inability to clarify the purpose adversely impacts quality of work and overall business strategy. Good communication is required for change management and,also helps handle cultural differences, work environment and behaviour differences.
Outsourcing is unsuccessful especially when you could not correctly identify it that a particular task need to be outsourced or not, and outsourcing it even when there is no value derived from it.