Outsourcing your business overseas can bring much value to your business in terms of cost savings and additional revenue realized. Most of our information focuses on how to bring value to your organization, but in this post we thought it would be useful to present you with a few of the problems that can stand in your way to achieving the desired success. We’re bringing you three main points to be aware of BEFORE you decide to outsource:

#1 – Negative Customer and Employee Perception

No matter how smooth the accent or how quality the workmanship, there will be some that take issue with the fact that your company has chosen to outsource. Some companies try to hide the fact that they outsource by only allowing the outsourcers to work in non customer-facing positions. Others choose not to include employees in the outsourcing plans until the last minute. Accounting for this confidence loss should be taken into account when determining a true cost-savings benefit to your business.

Solution:

Any outsourcing solution should be tested in a Phase 1, Phase 2, Phase 3, etc. release. You can couple a limited Phase 1 with customer satisfaction surveys designed specifically to test the overall reaction from your customer and employee base. Careful monitoring customer and employee reaction will help you to initiate Phase 2 much more smoothly. Additionally, open communication with employees as to a change in their roles is key. In most cases, you’ll need your team to work closely with the offshore team and establishing a good, healthy relationship early should be a priority.

#2 – Cultural misunderstanding can result in increased costs and a loss of productivity

Do you know the expected holidays for employees in the country you’re planning on outsourcing to? Did you know that in the Philippines a 13th paid month is expected for most permanent employees? Do you know what motivates employees in your intended country besides money? Not having the answers to this questions can prove costly at crucial times for your company.

Solution:

If you’re planning to outsource on your own, doing some reading on the cultural differences between your country and your hosting country can prove useful. You can also join groups and follow blogs that update you on local culture, requirements, etc. (Try LinkedIn and Twitter for some great information) If you’re using a 3rd party, make sure to ask what their plan is to cover local holidays and make sure you have a SLA that covers who’s responsible for additional costs.

#3 – Management Difficulties

Managing employees well is a crucial piece of any successful business. The lack of face time provided with offshoring and the time difference can easily create miscommunication, delays, and a lack of trust between your onshore and offshore teams.

Solution:

Determining service and efficiency standards from the start will help your offshore team with creating and hitting milestones and project deadlines. Breaking projects up and keeping your Project Managers in-house allow for clear communication to the managers and allow the managers a smaller, intimate team to work with to hit their goals. Having more points of communication with the offshore team help to make sure they’re receiving information from multiple people and perspectives.

I hope you’ve found this helpful as you move toward making a decision to outsource some of your work. Feel free to email us any questions you might have and we’d love to share more thoughts, help you come to a decision, etc.