Getting To Know The Changing Outsourcing Landscape

How outsourcing was built and its landfall to PH

Outsourcing At Its Birth

Outsourcing is not a new business strategy. Even centuries ago, it has been a useful method to provide better products and services to their consumers. It was only in the late 80s when it becomes the a full-fledged business approach, not only to provide better products and services but also to save a lot of money.

The illustrious journey of outsourcing began with the manufacturing industry and then, several industries follow including banking, real estate, information and technology, hospitality and much more. Outsourcing has really provided every company to benefit cost-effective and quality services. This also gives their mind to focus on core activities of their business.

However, it also comes with pestering challenges and risk factors that may lead to a tragic impact of the business.

Outsourcing Challenges

One of the greatest challenges that outsourcing industry is facing today is the bleeding of in-house human resources. The rise of outsourcing services gives the workforce a sense of uncertainty. That is why they tend to look for greener pastures.

Another challenge to outsourcing industry is selecting the right service provider. Due to its extreme demands, there are also tons of outsourcing companies rising up. The competition is very stiff where clients and businesses have difficulties in finding the right service provider.

There are also instances where businesses or companies have lack of understanding of the contract and legal tangles as well. Many outsourcing companies overlooked legal concerns and this goes similar to the clients. As an end result, outsourcing faces failures.

Outsourcing is also challenged with cultural concerns. Although some outsourcing providers, like the Philippines, have the capability to adopt various types of cultures and ethnicities, it also provides great impact to the outsourcing industry.

Outsourcing Solutions

While human resources worry about the stability, outsourcing offers skills training in new core processes and technologies to hone their expertise.

When it comes to selecting the right service provider and legal concerns, both parties should conform to the legal legislation hook, line, and sinker. Both parties should always be on-board and responsible for taking or making outsourcing decision.

Meanwhile, cultural coherence and synchronization can be attained by both parties through placing a sound multi-cultural sensitization program.

Risk Factors

The greatest common risk factors that every client and outsourcing provider fears are losing money and time. For instance, they might have hired the most incompetent workforce. 

Another risk factor is that majority of the outsourcing providers say they can do it for you. But, the question is, how can they do it and work for you?

For clients, take the time reading its proposals and do not hesitate on asking questions. For outsourcers, always ensure that the proposals are very clear and both parties should have unified agreement. Make sure that communications are always open for monitoring purposes.

These challenges and risk factors may sound daunting but the outsourcing industry has repeatedly shown its capability to morph despite the constant change in technology. As a matter of fact, there are still a lot to learn in the world of outsourcing. Automation is already here as well.

Sources:

New Year Musings: The Changing Outsourcing Landscape, Enterpriseirregulars.com

Risk Factors in OutSourcing And How to Avoid It?, SaqibKamran.com