Typical Challenges Faced While Outsourcing and How to Handle Them

Typical Challenges Faced While Outsourcing and How to Handle Them


With the present economy affecting every business companies, it has become imperative to do something to reduce the expenses on every level that includes employees, budgets or etc. IT managers and decision makers are forced to consider outsourcing various jobs and it also makes perfect sense. But along with this approach comes a handful of issues that you may not be prepared to handle. In this blog, I will discuss with you some of the issues and how you can overcome them.

The Change Management:

The first challenge that most business owners would experience while outsourcing certain jobs is the possibility of active or passive resistance from people inside the company. The prospect of hiring a software outsourcing company often creates uncertainty among the existing staff, who may plan to look for employment somewhere else. So, the best means to address this issue is to implement an effective change management strategy as soon as the software outsourcing contract is signed by the company. This may include a comprehensive communication program, which should be disseminated to all the stakeholders who will be affected by the decision.

Unrealistic Expectations:

Another most important challenge that business owners often face while availing outsourcing services is the expectation that the service provider will take care of each and everything about the business. If the expectation, especially by the management of the company is too high, then it leads to disappointment and overcritical feedback. So, it is very important to clearly understand the reasonable risks associated with outsourcing the project and the potential cost involved in completing the project. Similarly, employees and customers should also remain informed. Managing high expectations are often difficult to handle, but if it is handled effectively it can create goodwill among the stakeholders.

Lack of Involvement in the Project:

While the project is executed by a software outsourcing company, customer involvement is required at various stages to validate sign off on changes, review and comments, testing issues and etc. These tasks often need a lot of time and should be attended seriously during the progress of the project. This issue can be easily overcome by asking for a project plan from the vendor that states the involvement required in various stages of the project. Discuss about the means of communication so that you can make yourself available for the reviews and meetings and respond within the stipulated time period without any delays. It is also important to keep a tab on the action items and the dates that require your involvement.

Lack of Coordination or Communications:

In most outsourcing projects, communication plays a major role as the stakeholders need to be kept informed about the project updates. Gaps in communication often lead to unnecessary confusion and delay. So ask for a communication protocol from the vendor that defines the contact points. Also ask for weekly progress reports and have a regular check on the project progress.

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