Failures in outsourcing

Outsourcing is big business and sometimes, companies seemed to fall all over each other to be the first to outsource.

This is dangerous, because basic precautions are easily neglected, often for the of cost savings only.

Now KPMG comes out with a study saying that while the supplier might be meeting contract terms, they fell short of meeting promises.
"customers were now less interested in issues like the ability to roll-out new technologies, and much more interested in 'human' criteria like cultural fit, and quality."

This is a normal development so - in the beginning, companies more or less fall over each other to outsource and basically look for technology, technology and technology. There is than not much thinking about quality, just cost. However, after a while, mistakes or challenges come into the open, and, additionally, the market saturates somewhat. Or, the supplier is not as reliable as it seems in the beginning. More complaints are made by customers. There are enough stories around where the outsources are paid by the number of calls they handle in one shift - what means, they have to get rid of the caller as fast as possible. This is just one scenario.

Of course there are other companies that are in the business for a longer time and have been able to deliver to their clients. But they might be a bit more expensive. Which, again, is a function of demand and supply.

There is the saying that might be applicable here: You pay peanuts and get monkeys. So, if you are willing to pay more for good service, be prepared to pay more. In addition, companies are advised to do their homework before they outsource. Simply check the outsourcer under consideration as one would check other suppliers with whom you are working.

(By Asia Business Consulting)