Outsourcing Can Be Devastating If Not Done With the Right Partner

posted By : Admin

Outsourcing is a practice used by different companies to reduce costs by transferring portions of work to outside companies rather than completing it internally. Outsourcing is an effective cost-saving strategy when used properly. It is sometimes more affordable to purchase a good from companies with than it is to produce the good internally.


  • Decrease in Quality of Work
  • Cost advantages
  • Focus on core areas
  • Save on infrastructure and technology
  • Access to skilled resource
  • Time zone advantage
  • Faster and better services


  1. Decrease in Quality of Work

Quality of work depends on factors like infrastructure, technology, service policy, track record, labour policy, and expertise. If your outsourcing partner does not have the necessary resources, then the quality of work suffers. A partner, who is not interested, will not care about serving your customers the way you want them to. This will result in your company losing customers.

  1. Reduction in Levels of Customer Satisfaction

Customer satisfaction is imperative to the survival of a business. A business would not last long, if customers are not happy.  The reasons for customer dissatisfaction can be many. Having an incapable service provider is one the main reasons of customer dissatisfaction. If you partner up with an incapable service provider, you will notice that customers are not happy because the providers are not doing their job properly. You will start losing customers. Customer loyalty will be affected and your customer acquisition cost will rise abruptly.

  1. It Can Affect Partnership Growth

A partnership, in the truest sense, involves sharing a common goal and maintaining a long-term association. There cannot be any growth if your service provider lacks interest to add value to your business. Your partner should take initiatives and help you to climb up the ladder in the market. Many companies fail to function properly due to the lack of a good service provider.

  1. Problems in Communication and Co-ordination

Maintaining clarity in communication is very important for a business to run smoothly. A service provider, who is uninterested, will not bother to take the initiative to communicate with you on issues which are important. This will harm your business as you will remain unaware of important issues or changes.

  1. Time Waste

If your service provider is not at all interested to devote sufficient time to cater to your customers, there is nothing you can do which will change the attitude. This results in your company missing deadlines, which eventually turns into a chain reaction and it is difficult to stop. Soon you realize that your service provider is not adding any value to your company, but often it is too late by that time.

  1. Waste of Money

If outsourcing decisions are taken hastily, then your company is subjected to a huge risk of incurring heavy financial losses. The purpose of outsourcing is to concentrate on the core aspects of your business while your service provider takes care of the secondary aspects which are very important as well. However, if your service provider is incapable and does not do their job properly, you end up spending more money and using more resources. In today’s world where competition is immense, a wrong outsourcing choice can be fatal to your business. Therefore one should be careful while making decisions regarding outsourcing. They should go for providers, who have credibility in the market.

  1. Company Image is Tarnished

If your service provider does not do their job, it ultimately affects you and not them. Your customers will complain to you. They do not care about your service provider. Thus, having a service provider who does not care to add va

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