Five reasons of outsourcing failure and their solutions. - PowerPoint PPT Presentation

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Five reasons of outsourcing failure and their solutions.

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The PPT discusses various reasons due to which process of reasons can be a failure for a company which include communication gap, unclear objectives and improper transition. The solutions to avoid these failures are also mentioned in it. – PowerPoint PPT presentation

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Title: Five reasons of outsourcing failure and their solutions.


1
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
2
  • 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

3
  • 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

4
  • 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

5
  • 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

6
  • 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

7
  • 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

8
Vcare Call Center
701 Fifth Avenue,
Suite 4200, Seattle, WA 98104

1.206.441.7760 
sales_at_vcarecallcenter.com
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