The real rewards of outsourcing a business process to an offshore location are easy access to the required skills and timely delivery of services. If you focus only on cost saving, you won’t be able to enjoy these rewards.
Why cost saving should not be the only factor while outsourcing
1. Why cost saving should not be the only
factor while outsourcing
2. Cost saving should not be the only factor while outsourcing a
business process because:
You may end up hiring an incompetent vendor
Inefficient performance may adversely affect your business
Cost saving comes after the success of the outsourced process
Preoccupation with cost saving may defeat the whole purpose of
outsourcing
3. You may end up hiring an incompetent vendor
Many vendors lure clients by offering ridiculously low rates
Instead of falling in this trap, you should go for the competency of the
vendor
If you only go for cost saving, you are no longer able to focus on desired
results
When desired results take a back seat, you end up hiring the wrong
vendor
4. Inefficient performance may adversely affect your business
If you concentrate on cost saving, the vendor will do likewise
The instances of inefficient performance will shoot up
This situation is detrimental to the quality of your products and services
As a result, your end customer is unhappy and eventually your business
suffers
5. Cost saving comes after the success of the outsourced process
Cost saving is an attribute that can only be calculated after successful
completion of the project
Cost saving does not mean anything if you do not get the desired results
So, always concentrate on achieving the desired results before calculating
the cost savings
6. Preoccupation with cost saving may defeat the whole purpose
of outsourcing
The purpose of outsourcing is to get easy access to well qualified human
resource
So, your focus should be on the availability of skill sets and the service
delivery model
If you focus only on cost saving, you will lose this focus
This lack of focus on the real rewards of outsourcing may defeat the whole
purpose of the exercise