Hidden Pitfalls Of Outsourcing And Its Impact

Outsourcing

The world companies who are associated with different kinds of outsourcing businesses always prefer the way where they can save money and time so for them the outsourcing is the best option where they don’t need to do focus also were they only concerned with the decided results and nothing else, but this is not the end for the outsourcing.

The many other indirect cost and time associated factors effecting on company profit and loss but most of the companies don’t know because they are not much clear to them, the companies only focus on what they are paying with their cheques not focus on indirect channels here are some hidden factors of outsourcing.

The security risk of data

Maximum companies don’t know about their data and its usage how it could be used against them and how good it is for the competitors, and with data, bad companies can do blackmail very easily so the security of the data is at high risk when companies do outsource which they even not calculate when making deal with the average outsourcing companies.

So, for the companies, it is mandatory to check the data security with the companies first rather than focusing on the cost and the money only because the data sharing can become a big issue for the company which even, they don’t know after sharing as well, so this is the main issue for the outsourcing.

Undefine budget desire

Many companies define things as they are offering a very cost-effective task budget but at actual, they are playing with the client by showing them the low cost and big target where companies happily accept the contract and after it the main control starts by the outsourcing companies.

Because with minor work, they ask for the funds and present the facts which not included in the contract actually that is the pre-plan work and theme which they commonly use with different kind of clients.

Timing difference

The main issue when the timing of any outsourcing company does not match with the hiring company because of different time zones where one company need a whole day to communicate one thing to another company which means more time wasted in a single task sharing or understanding which is too slow as per the IT sector.

The maximum output is only possible when the same time zone companies work together which means close day-to-day communication on the same day without wasting time in waiting so this is another factor for the outsourcing of IT services.

Cultural and language differences

The cultural and language difference is a big issue because the way of talking and tones are big matter which can be acceptable in the same culture and language but can become an issue if any other language and culture, it gives the sense you are talking something else and they are understanding it in very different manners.

These differences invite many undesired disputes and issues between the companies and teams which are not common in the same language and culture because both understand in the same way so this need to be considered as a very important factor of outsourcing.

Unseen project scope

Maximum of the time it happens when companies hire the outsourcing companies on the project discussion, they always practice understanding sound about the project scope but in reality, they do even not get the scope that’s why the theme and flow of the project mostly not deliver as per the client desire.

The tricks to getting businesses to say yes on everything is the normal practice by the outsourced companies that’s why they say yes on many things related to the project which they even don’t remember after the project meeting.

Undecided hopes

The issue between the dealing of the outsourcing’s companies and the hiring companies is they are expecting too much and sometimes they are expecting more than the decided things, the hiring company most of the time expects that the outsourcing company can give you a theme like an amazon in few dollars and deliver the work like electric.

Whereas the outsourcing company is willing to take agreement friendly without penalties and quick payments without focusing on the deadlines and project accuracy, so that is the wrong and unprofessional hopes from both sides which create issues most of the time between them.

Fight on quality and quantity

Both side of the companies always focuses their priorities rather than the contract priorities some time clients deliver the undesired work or undemanded work too fast and claim payment against the quantity that they finish and deliver but at actual that is not the fact because as per agreement decided things are different.

Whereas the hiring company plays more smartly and is willing to get high quality and hard work fast to trap the outsourcing company with funds and pending work, so this fight is not good when the agreement has a clear understanding about the task and the time frames.

Hidden or unclear words game

Most of the time external companies do not share the complete things on the contract or write some unclear and technical words which they can use to earn more and take advantage in the future to delay the task mostly in email marketing services or the given project the playing with words is the art of the external companies from which hiring companies mostly unaware.

Bad contracts

The contracts which mostly unclear or always in favor of the external companies is called the bad contract particularly in pay per click management services, obviously when the hiring company paying the funds and the contract is also against them so why they are in the contract and for what they are paying for so in outsourcing this is also a trend.

Wrapping up

The hiring companies must need to know what they actually need with outsourcetopk because sharing of data with external firms is risky, or allotting too many funds for external companies without checking results is also not a good decision.

Read more: Outsourcing IT projects versus inhouse team

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