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Five Mistakes You’re Making When Outsourcing

by Lina Martinez

Any business only has a limited amount of time on their hands to deal with everything that’s required when owning a company. But sometimes, that struggle to deal with things can come at a cost. That’s why many businesses will look at outsourcing as a way to offload some of the work, usually by professionals. However, with outsourcing, you can very easily do it wrong. Here are five mistakes you’re making when outsourcing. 

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You’re Trying To Find Cheap Alternatives

It’s true that you can save a lot of money when it comes to outsourcing tasks and work that needs doing. Usually, when you want something done, you hire a new person to take on the work that’s not being completed or completed effectively. However, there are restrictions when it comes to hiring someone new. Firstly, you’re responsible for paying their wages, holiday pay, etc. And secondly, you might not have enough space to cater to more staff members. So outsourcing can help in this regard. However, that doesn’t mean that because it’s cheaper, you should go for cheap when it comes to picking the companies and individuals responsible. When it comes to your work, you want it to be the same quality as you’d provide, so don’t be too stingy when it comes to money.

Communication Is Lacking

The downside of outsourcing is that you’ve now got to keep on top of what they’re doing on a daily or weekly basis, depending on what they are responsible for. Whether they are an IT company or an accounting firm that handles your bookkeeping, you want to maintain the same communication that you would do if they were there in the same building as you. Keep updated with anything that’s ongoing and always look to find ways to improve the relationships and the processes that come with completing those tasks. If they’re not providing you with the quality of service that you require, it’ll be necessary for you to take control of these situations and to handle them efficiently. Take charge because you’re the one paying for it all.

Not Thinking About Location

The location of the company or individual you are outsourcing is of great importance. However, it is one thing that many companies will neglect to consider when signing contracts that tie them into this partnership for a long period of time. For example, if your company is in one country and your IT support is in another that’s several hours behind or ahead, how will help be given? Your staff are flagging problems with their desktops, meanwhile, that outsourced IT support is fast asleep in bed. Clearly, this is something that is then a big mistake and something you might be losing money on for a while if you’re roped into a contract.

The Level Of Training 

It’s important to note that when you’re outsourcing someone or a company, they will need to know more about your company before they begin doing the work. Depending on what that work maybe will also reflect what training they are given. However, some businesses will neglect to give the training needed and instead, expect that outsourced company to be fully prepared and able to take on the tasks needed. Without giving the proper training, you are opening it up to mistakes being made. Not to mention having to spend more time, going back and forth, correcting things yourself. So save yourself some valuable time and give them the full briefing and training needed the first time around. That way, you’ll have to spend less time having to do the work that you’re paying them to do in the first place. 

Misunderstanding Budget And Costs Required

Outsourcing can certainly be cheaper than having to hire more staff for your business, but many businesses have ended up losing more money by miscalculating or not understanding the budget or costs required the company or individual in question. On the contrary, outsourcing isn’t always the cheapest option. Take a look at how much you’ll be paying over a period of time because if you need them more regularly after a while, then it could be that you end up paying even more than you would for an in-house staff member. If you’re going to outsource, then do your calculations and keep an eye on it if anything changes within your company. 

Outsourcing is extremely beneficial and one that all businesses should consider at some point, but there are certain things you need to consider and take control of both before and during this process.