Five reasons of outsourcing failure and their solutions. (1)

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5 reasons of outsourcing failure
and their solutions

• Why outsourcing is important
• Helps in expanding business
• Spending of company remains in control
• Work is handled by industry experts

701
Fifth Avenue, Suite 4200, Seattle, WA 98104

1.206.441.7760 
sales_at_vcarecallcenter.com
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• Processes that are outsourced
• Call center process (inbound and outbound0
• Software development
• HR services
• Logistics
• Manufacturing
• Outsource right and win the race
• 701
  Fifth Avenue, Suite 4200, Seattle, WA 98104

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• Causes of failure in outsourcing
• 1. Communication gap
• Reasons
• Cultural differences
• Language barriers
• Technological hurdles
• Inability of client on presenting requirements to
  vendor
• Lack of transparency in the contract
• Cure
• Well planned meetings
• Use of technology to communicate
• Present detailed requirements to vendor
• Receive regular reports from vendor
• Outsourcing is a well-planned step

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• 2. Poor performance by vendor
• Reasons
• No technological advancements
• Unskilled workforce at vendors office
• Lack of transparency in processes
• Improper quality management
• Cure
• Choose renowned outsourcing partners
• Analyze proficiency of vendors workforce
• Make sure processes are transparent from vendors
  end
•  
• Outsource responsibly to survive

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• 3. Unclear objectives of outsourcing
• Reasons
• Making cost control the sole reason of
  outsourcing
• Neglecting other objectives
• Not examining the outcomes of outsourcing
• Cure
• Analyze reasons as per companys long term goals
• Examine the outcomes of outsourcing
• Go through case studies related to outsourcing
• Consider other objectives like
• Access to proficient workforce
• Flexibility of process
• Quality enhancement
• Outsource to expand, not contract

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• 4. Improper transition while outsourcing offshore
• Impact
• Rise in overall costs
• Delay in the execution
• Inefficient service
• Cure
• Plan transition beforehand
• Examine each component thoroughly during
  transition
• Outsource! Grow! Repeat
• 
  701 Fifth Avenue, Suite 4200,
  Seattle, WA 98104

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• 5. Losses due to unforeseen and rising costs
• Reason
• Not forecasting the rise of outsourcing
• costs in future
• b) Outsourcing to a region without
• examining its economy
• Cure
• a) Predict the rise of costs and outsource
• accordingly
• Divide project and outsource to
• different regions
• Outsourcing is panacea if done right
• 
  701 Fifth Avenue, Suite 4200,
  Seattle, WA 98104

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Vcare Call Center
701 Fifth Avenue,
Suite 4200, Seattle, WA 98104

1.206.441.7760 
sales_at_vcarecallcenter.com