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Why cost saving should not be the only
factor while outsourcing
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
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
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
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
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
Thank You
Know more ways to get the desired results through
outsourcing

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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
  • 7. Thank You Know more ways to get the desired results through outsourcing