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The Three Threats to Outsourcing Sustainability

Jenny Cagadas

Wednesday, June 09,2010

Traditionally, businesses avail of IT BPO outsourcing for the sake of saving money. As observed by the Supply Chain Management, thousands of companies only prefer to get outsourced services because they have discovered the great monetary value of rerouting their non core business processes to an off site provider. To point out, most of those who spend on offshoring web developers and other IT manpower, are able to save 7%-9% of their intended investment, as well as revenue. This savings would cover expenditure cuts on administration, sales, inventory, and transactions. But, this positive aspect of outsourcing also presents sustainability risks as money-centered drives cause some entrepreneurs to compromise.

Yes, outsourcing conveniently provides financially ailing companies continuity solutions since it allows them to pursue set production goals while maximizing funds. At this end, it gives businesses the ability to cope with the crisis with less damage. However, looking back on the past twenty years, there have been a few glitches to this seemingly perfect resolution. Upon closer evaluation, it can be seen that certain factors affect how well the services are carried out and delivered. And these are not necessarily guaranteed by cheap services prices.

* First, sustainability is endangered when the IT bpo outsourcing provider your business turns to does not have your company’s best interest at heart. If they are for profit alone, most likely, they will not be able to give you what you want, since they are bordered by your financial status. What happens usually is: you approach an outsourcer with an intent and a set budget. They will present to you your options and their equivalent prices. An outsourcer that looks out for your welfare will attempt to negotiate with you, and give you the chance to bargain. This will ensue until both reach parties reach an agreement. And as you honor your end, they will also honor theirs.

* Second, it causes great peril in the continuity of your projects if the BPO information outsourcing firm you align with does not have a of professionals, environment and business background that compliments your needs. So you have to ensure that you not only secure the right staff, with right set of skills, but also partner up with an outsourcing company that understands their industry, as well as your industry.

* The outsourcing company’s reputation and experience in building relationships, and establishing communication, as well as their track record in providing services, also play a major role on how they would maintain their deliverables. If they are not accomplished in all these aspects, then there is a big chance that they will not be able to cope up with what you demand, and maintain efficiency.

Price is one thing to ponder on. But it is not the sole factor on which the integrity and survival of your business rests. So if you want to ensure both, aside from the price, you should also consider how the IT bpo outsourcing company you contact fares in all the three aforementioned criteria. It is only then you can correctly gauge if outsourcing does save you money or cost you more.

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