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Data Entry outsourcing is well underway in its third decade. Many decision-makers have made great strides towards maturity and have avoided some of the practice’s common and costly disadvantages. Managing director’s of many companies says clients are entering next-generation outsourcing deals today, doing many things right. For example, they create better service levels that more accurately reflect actual performance and end-user experience.

However, leaders make many common – and costly – disadvantages and some emerging mistakes in their latest outsourcing deals. Taking care to avoid these outsourcing mistakes will go a long way towards increasing service engagement.

Switch providers instead of eliminating root causes

 Leaders understand the importance of flexibility in the digital age, and they’ve put together small outsourcing deals – often with multiple providers – to maintain flexibility and efficiency. However, some outsourcing clients focus more on changing service providers and ignoring their organizations’ roles. “They are trying to switch providers and not solve the original problem, which would be a problem for any provider,” says an expert. Instead, buyers of services should take the time to understand their role in a successful supply relationship fully, rather than blaming the service provider reflexively.

Focus on solutions rather than problems

The most common mistake is focusing on technology, which is easy to do with today’s tremendous digital propaganda. But, unfortunately, buying the latest shiny game rarely yields results. Instead, leaders should spend time identifying the business issues they are trying to solve or the results they want to achieve before signing any deals for services. It means engaging business partners and users in conversation. Will help and re-imagine challenges or open up engagements in previously excluded areas of work.

It is less common than ever to focus on buying the lowest price for pre-selected solutions. The disclosure of this can be frequent change requests and the demand for dedicated specialized resources that come with additional fees, which lighten the business case and affect confidence in outsourcing.

Play hardball on terms and conditions

Insisting on strict terms during outsourcing negotiations can affect the provider’s business model and return the customer to take a bite. Some contract principles directly affect the price, and in many experience reviews, in our experience, the combined result can be as high as 8 to 10 per cent of the total contract value. When negotiating, the goal of negotiation is to ensure compliance with the organization’s requirements and not place the provider in the most challenging positions.

Reducing human influence

Many business leaders fail to plan for the significant change needed in the outsourcing environment. As a result, they face significant hurdles to achieve the desired results. Too often, leaders assume that their current organization can handle a new service delivery model until it suddenly becomes clear that they can’t.

Never assume that your employees have the right service management team in their place. Working with a third party requires necessary relationship skills – some people can learn them, some will never learn. A difficult member can break the work of many thoughtful people.

Leaders should communicate actively and honestly, taking into account the concerns and needs of a particular stakeholder group and, for example, ensuring that key employees have a safe transition process, re-training programs, and bringing in new talent as needed.

Insufficient attention on advancement

Delivery from an organization to a service provider focuses on an outsourcing commitment, which requires significant planning and control. Companies that ignore the turnaround strategy are likely to experience delays or losses in profits, loss of stakeholder trust and support, and disruption of business.

Customers and external providers must understand any engagement with a transparent and consensual basis of the baseline environment – including processes, systems, service levels, volumes, contracts and exclusions – and precise planning of the knowledge transfer process. They should make contingency plans and minimize the impact of significant business activities such as quarterly financial shutdown, initially with employee overlapping. Leaders should also plan long-term time-related items, such as what technologies to create, edit, or hire team members. But, most importantly, they should build a strong transition team or program management office that can handle punches. Be creative, and don’t get caught up in limitations easily.

Stress, chaos, and frustration don’t have to be the norm anymore.

Stop spending countless hours every week on tasks someone else can do for you. Contact us today to discover how you can reclaim your schedule, focus on what matters, and achieve the growth you deserve.

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