Much has been said and written extolling the advantages and benefits of outsourcing. Fortunately, most of these are true if you outsource wisely. Like any good things, outsourcing has also its share of downsides and risks. However, these less positive sides of the process can be minimized, if not completely avoided.
When outsourcing, here are some “caveats” to watch for and how to avoid them:
1. Accessibility risk:
This problem comes up particularly when you outsource your IT system. Although outsourcing this phase of your operations is cost-effective, it may adversely affect productivity when your outside IT service runs critical system failures. This may take several days especially if your IT contractor is too busy with other clients to attend to your problem immediately. This delay can lead to potential loss of productivity and considerable loss in revenue.
This scenario can be avoided if you stipulate in your contract with your IT contractor to include a clause making them responsible for potential loss per day for any mishap like systems failure. Sometimes, it may not be humanly possible for them the fix your problem in a snap but this will force them to act immediately and prioritize you over other clients.
2. Loss of personal touch.
Admittedly, an in-house administrator has a more familiar and personal concern in overseeing his job. Hence, he is able to deliver results faster and more efficiently compared to his outsourced counterpart. Normally, outsourcing seldom provides the personal touch to a task better than an in-house staff.
Fortunately, although this may be true in many cases, this can be avoided by hiring the right people. Many companies who are well experience in outsourcing vouch to the reliability of virtual assistants from the Philippines. It is innate in the Filipino workers to be dedicated to their tasks hence they are preferred over other nationalities in terms of loyalty and length of service, some even last for decades working in the same company.
3. Security concerns:
Dealing with a 3rd party, especially when the IT system is outsourced always opens security risks. This is particularly so when dealing with offshore companies from foreign countries that may not have laws protecting intellectual property or other private information. Prosecution in cases like this may not be easy.
To circumvent this problem, it is wise to ascertain whether the managing company employs strict security measures. Outsourcing in the Philippines reduces this risk since the Philippine government has laws protecting foreign investments in the country to attract more investors. These include banking facilities and property ownerships.
4. Sub-standard quality:
It is indeed sad that in many countries that offer cheap outsourcing supply below par quality of workers and products. This is partly due to the cheap investment many companies are willing to spend. It is not easy to monitor effectively the quality of production of outsourced hands. The best way to solve this is to deal only with companies where workers are trained from reputable companies that produce branded names. You should insist that every worker your outsourcer recommends should be interviewed and tested by your own company before finalizing their employment.
5. Bad reputation:
Outsourcing manufacturing is usually associated with sub-standard working and exploitative conditions of labour in their countries of origin. Many consumers frown on these unlawful practices and may end up with your products being boycotted or banned altogether. To avoid being associated with these humanitarian problems, make sure that the workers you outsource are legitimate and are protected by the labour laws in their countries.
In order, therefore, to avoid these “caveats”, outsourcing in the Philippines is the wise option to take in hiring workers safely and thus benefit from the process.