Latest Challenges of Outsourcing to India And How to Overcome Them
Introduction ❏ If you ever wondered why the trend of outsourcing business services to India is gaining momentum so quickly and boldly, here’s what Peter Ferdinand Drucker, an American management consultant, author and educator, has to say: “Do what you do best and outsource the rest!”
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Introduction ❏ The term ‘offshore outsourcing’ seems like an impeccable business tactic today, but it was only in the late eighties that it was effectively adopted by small, medium and large-scale businesses. ❏ Outsourcing business services to India has proved to be a life-altering experience for numerous business owners because of the cost-effectiveness and peace of mind that comes naturally with it. ❏ But as they say - no pain, no gain; there are some major challenges associated with outsourcing. Today, let’s discuss the top five challenges of offshore outsourcing and the solutions to overcome them. www.virtualemployee.com
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Challenge#1 - Feeling of Uncertainty for In-House Employees ❏ As soon as you break the news of outsourcing work, in-house employees get the feeling that the organization is cutting costs and hence, their jobs might be in danger. ❏ As a result, they start panicking and looking out for other work opportunities, which in turn increases the company’s attrition rate and decreases the work performance rate.
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Solution â?? In such a scenario, retaining your in-house employees is very important. Experts suggest building up a multiple-domain excellence centre, wherein your existing employees can develop skills in different functional areas and processes. â?? Not only will this make your workforce more versatile, it will also make your employees feel more confident and less fearful of losing their jobs.
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Challenge#2 – Whom to Choose? ❏ Considering the huge demand for outsourcing business services to India, hundreds of outsourcing providers have jumped into the market to try their luck. ❏ Such cut-throat competition makes it all the more important for you to choose the right outsourcing partner. ❏ Collaborating with an inappropriate vendor may lead to misunderstandings and frustration, subsequently resulting in messed up or delayed project deliveries. www.virtualemployee.com
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Solution â?? Here’s a step-by-step guide to ensure that you do not select the wrong vendor for outsourcing business services to India: 1. Make a list of your requirements from your remote employees. 2. Shortlist some trusted service providers in the business, and assess them for your work and support requirements. 3. In case your chosen outsourcing partner offers free trials, go for it before trusting them with long-term contracts. 4. Get an all-inclusive service agreement in place and do not forget to read the terms and conditions before signing it. www.virtualemployee.com
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Challenge#3 – Misunderstanding Legal Implications â?? Business owners facing challenges in outsourcing point out that there is nothing more disastrous than misunderstanding a legally-binding service contract. â?? Doing so increases the chances of failure of your outsourcing venture.
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Solution â?? Getting wrongfully trapped in legal implications can be easily avoided by following the local laws. â?? Also, it is best to be open and candid about all the terms imposed by both the parties.
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Challenge#4 – Confusing Cultural Tangles ❏ Outsourcing work to a different geographical location is intriguing as it invites a lot of fresh ideas and perspectives to make your business stronger and more unique. ❏ But it also brings along two types of cultural differences or peculiarities – professional and regional. Resolving these cultural tangles is not as easy as it seems, but here’s how you can overcome this outsourcing problem.
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Solution â?? It is always better to comprehensively study the various complexities involved in the process of outsourcing. This will enable the outsourcer to understand how offshore outsourcing is expected to affect the everyday lives of their remote employees with different cultural backgrounds. â?? To establish a system of cultural coherence between both the parties, you could also try bringing in a robust multi-cultural sensitization program. www.virtualemployee.com
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Challenge#5 – Losing Control over Outsourced Processes â?? While outsourcing business services to India, remember that many outsourcers forget about the work after outsourcing it, anticipating that it will be completed efficiently within the desired time frame. â?? This can either make your remote team overconfident/complacent, or lose your control over your business functions gradually.
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Solution â?? Micromanagement is always a no-no, but you still need to track work progress to avert project management hurdles down the road. â?? This will help you in keeping the processes up and running. You can also be in complete control of the outsourced project this way.
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