Latest Challenges of Outsourcing to India & How to Overcome Them

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Latest Challenges of Outsourcing to
India And How to Overcome Them
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Introduction

• If you ever wondered why the trend of outsourcing
  business services to India is gaining momentum so
  quickly and boldly, heres what Peter Ferdinand
  Drucker, an American management consultant,
  author and educator, has to say
• Do what you do best and outsource the rest!

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Introduction

• The term offshore outsourcing seems like an
  impeccable business tactic today, but it was only
  in the late eighties that it was effectively
  adopted by small, medium and large-scale
  businesses.
• Outsourcing business services to India has proved
  to be a life-altering experience for numerous
  business owners because of the cost-effectiveness
  and peace of mind that comes naturally with it.
• But as they say - no pain, no gain there are
  some major challenges associated with
  outsourcing. Today, lets discuss the top five
  challenges of offshore outsourcing and the
  solutions to overcome them.

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Challenge1 - Feeling of Uncertainty for In-House
Employees

• As soon as you break the news of outsourcing
  work, in-house employees get the feeling that the
  organization is cutting costs and hence, their
  jobs might be in danger.
• As a result, they start panicking and looking out
  for other work opportunities, which in turn
  increases the companys attrition rate and
  decreases the work performance rate.

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Solution

• In such a scenario, retaining your in-house
  employees is very important. Experts suggest
  building up a multiple-domain excellence centre,
  wherein your existing employees can develop
  skills in different functional areas and
  processes.
• Not only will this make your workforce more
  versatile, it will also make your employees feel
  more confident and less fearful of losing their
  jobs.

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Challenge2 Whom to Choose?

• Considering the huge demand for outsourcing
  business services to India, hundreds of
  outsourcing providers have jumped into the market
  to try their luck.
• Such cut-throat competition makes it all the more
  important for you to choose the right outsourcing
  partner.
• Collaborating with an inappropriate vendor may
  lead to misunderstandings and frustration,
  subsequently resulting in messed up or delayed
  project deliveries.

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Solution

• Heres a step-by-step guide to ensure that you do
  not select the wrong vendor for outsourcing
  business services to India
• Make a list of your requirements from your remote
  employees.
• Shortlist some trusted service providers in the
  business, and assess them for your work and
  support requirements.
• In case your chosen outsourcing partner offers
  free trials, go for it before trusting them with
  long-term contracts.
• Get an all-inclusive service agreement in place
  and do not forget to read the terms and
  conditions before signing it.

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Challenge3 Misunderstanding Legal Implications

• Business owners facing challenges in outsourcing
  point out that there is nothing more disastrous
  than misunderstanding a legally-binding service
  contract.
• Doing so increases the chances of failure of your
  outsourcing venture.

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Solution

• Getting wrongfully trapped in legal implications
  can be easily avoided by following the local
  laws.
• Also, it is best to be open and candid about all
  the terms imposed by both the parties.

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Challenge4 Confusing Cultural Tangles

• Outsourcing work to a different geographical
  location is intriguing as it invites a lot of
  fresh ideas and perspectives to make your
  business stronger and more unique.
• But it also brings along two types of cultural
  differences or peculiarities professional and
  regional. Resolving these cultural tangles is not
  as easy as it seems, but heres how you can
  overcome this outsourcing problem.

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Solution

• It is always better to comprehensively study the
  various complexities involved in the process of
  outsourcing. This will enable the outsourcer to
  understand how offshore outsourcing is expected
  to affect the everyday lives of their remote
  employees with different cultural backgrounds.
• To establish a system of cultural coherence
  between both the parties, you could also try
  bringing in a robust multi-cultural sensitization
  program.

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Challenge5 Losing Control over Outsourced
Processes

• While outsourcing business services to India,
  remember that many outsourcers forget about the
  work after outsourcing it, anticipating that it
  will be completed efficiently within the desired
  time frame.
• This can either make your remote team
  over-confident/complacent, or lose your control
  over your business functions gradually.

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Solution

• Micromanagement is always a no-no, but you still
  need to track work progress to avert project
  management hurdles down the road.
• This will help you in keeping the processes up
  and running. You can also be in complete control
  of the outsourced project this way.

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