Change management The very first challenge that companies are likely to experience when embarking on outsourcing certain functions, is that of a possible lack of buy-in from people inside the company, which may take the form of active or passive resistance. The prospect of outsourcing also creates uncertainty for existing employees, who may decide to look elsewhere for employment.
Many of the risks of outsourcing can be mitigated with solid preparation Outsourcing problems planning, but nothing helps more than understanding what the potential pitfalls are, and how they might be avoided.
Four potential outsourcing issues are highlighted Outsourcing problems this article, along with some ideas and suggestions to prevent, avoid, or minimise the impact of each. The very first challenge that companies are likely to experience when outsourcing certain functions is that of a possible lack of buy-in from people inside the company.
This may take the form of active or passive resistance. The prospect of outsourcing also creates uncertainty for existing employees, who may decide to look elsewhere for employment.
The best way to address both these problems is to implement an effective change management strategy as soon as or even before the outsourcing contract has been signed.
A comprehensive communication programme should be developed and disseminated to all stakeholders who will be affected by the outsourcing process. The message should be tailored to different levels of employees.
It should essentially answer the question: Managers Fear Change Too Remember that managers, especially, can suffer from a shift in equilibrium when you outsource.
Their concerns will range from the possibility that their jobs will be at risk, to a sense of lost control when tasks for which they were accountable and had direct control, shift to an external provider.
Your managers may still have accountability, but will need to take a completely different approach to monitoring processes and ensuring results. It may even be that their roles will change substantially, and that they will have to manage relationships with external counterparts, where before it was all about being seen as a leader by internal reports.
Keep Your Managers in the Loop This can be quite a change indeed, and some managers may not be naturally imbued with the right qualities for managing operational partnerships.
If you expect that some management jobs will be sacrificed, you will need to be ruthless about identifying which people it makes most sense to retain.
On the other hand, you might find that investment in targeted training will help retained managers to adjust to the new modus operandi.
The important point here though, is that you should not make the mistake of neglecting your management team in your change management plans.
While you may be depending on your managers to lead your workforce through the change, they can only do so effectively if their own reservations and fears are first allayed or they at least know exactly what the changes will mean to them.
When embarking on offshore outsourcing, cultural differences should not be ignored. Two types of cultural differences cause difficulties between companies and their outsourced service providers. These are corporate differences, and national or regional differences. In terms of corporate culture, a company and its outsourcing partner may have different norms relating to organizational structure, authority, and style.
In terms of national culture, there may be differences in language, religion, and values. On the other hand, low-context cultures, such as American or Australian cultures focus more on figures and closing a deal, sometimes leading them to be perceived as aggressive.
Outsourcing service providers often implement such awareness training for their own staff, and in many cases, will be happy to share material and content with their clients.Problem #2: Little or No Support From Client Leaders Receiving Services. Another significant problem that exists in many outsourcing implementations is the lack of buy-in from senior client leaders who will be recipients of the outsourcing services.
Outsourcing can be challenging if done to a wrong service provider. Outsource2india presents top 5 outsourcing challenges and solutions in present times.
Considering outsourcing the support and management of your IT, but not sure what problems you may encounter? We'll discuss the main challenges. The final result of our efforts is a “Top 10” list of client problems with outsourcing implementations.
There was wide agreement among clients and service providers alike regarding key issues — we ranked the problems based on the prevalence of responses we received and the impact/downstream implications of the problem.
The outsourcing company will be primarily driven to make a profit from the services it's providing to you. The flip side is that profit is a great motivator and you can usually trust that the outsourcing company has considerable experience in the service it's offering you.
Jan 31, · Four Outsourcing Challenges (And How To Solve Them) Outsourcing offshore can yield substantial savings. However, there are many risks involved. Below are the problems and how they overcame.