How To Manage Outsourcing

There are some companies out there that make the mistake of assuming that outsourcing

takes the burden of management off its shoulders, in relation to the function it passed on to the outside party. However, this is a misconception. Even if you outsource part of your business to outside contractors, basically, that part of business is still yours and has your interest in it. Thus, as part of your business, you should be able to exercise management over your outsourcing interests to ensure that the company does not suffer from the arrangement instead of benefiting from it.

The functions performed by outsourced companies are part of your business, and is directly tied to your operations. Despite their advantages in terms of cost reduction, outsourced companies can actually make or break your business. Thus, as part of your managing routine, you should watch closely and make sure that the outsourced functions are of highest quality. This entails visits to the outsourced site every once in awhile, even if it means you have to cross oceans to do so.

One of the challenges of managing outsourced operations is controlling or addressing the negative employee backlash that the move may generate within your ranks. For example, vengeful employees may want to discredit the outsourcer by deliberately withholding information that the latter may need to function properly. Deadlines and specifications are intentionally held back in an effort to show that the outsourcer is not performing well as required, and the company would be better off using internal sources of manpower instead.

From this, one can say that one disadvantage of availing outsourced work is that a company cannot easily go after employees that commit violations because of employment technicalities. Instead, it has to rely on the outsourced company to pursue legal actions as needed, which will take some time to accomplish. Due to the arrangements of outsourcing, Citibank was exposed to the risk of losing customers, because the recovery of the stolen money will take a considerable amount of time if done through legal channels.

There are some in the public who hold the view that outsourced offshore services are a form of exploitation of workers in countries with lower labor wages, because of the demanding nature of the job (especially call centers) and the minimal amount of wages that they are paid. Defenders of outsourcing, however, say that these individuals are benefiting from outsourcing because of the creation of paid jobs for them.

by: Lawrence Perry

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