Lack of Research Is the Root Cause Behind Most Outsourcing Failures

With outsourcing becoming easier, more readily available and more and more common clients fail to appreciate the enormity of the outsourcing industry. Clients spend more time drafting what they want done and negotiating costs than they do on researching how to do it, when to do and with whom to outsource. Unfortunately for clients that don’t research, the outsourcing industry is truly colossal and far more intricate than one may think. Popular outsourcing destinations span cross continents, from China in the Far East to Ukraine in Eastern Europe and Ghana in West Africa.When it comes to vendors there are several outsourcing giants like Wipro, HCL and Infosys, hundreds of different SME (small to medium enterprise) outsourcing service providers and tens if not hundreds of thousands of individual remote outsourcing freelancers. What can be outsourced now also appears to have no boundaries. The outsourcing industry caters to almost everything and anything one can think of, from call centers and programming to legal, engineering and accountancy services. Furthermore, some outsourcing companies specialize only in certain sectors whilst other vendors mould to your specific outsourcing needs.Even countries have built sector specific reputations; the Philippines has made a mark in voice process call center outsourcing and India’s dominance in programming looks to go unchallenged for at least another decade or so. There is no less diversity when it comes to the mode of outsourcing. Certain outsourcing companies work on projects, other companies provide remote staffing solutions and some companies work only on long term contracts. The point is very simply this; there are many different methods and ways, permutations and combinations by which one can outsource. Whilst it is very important for clients to know what they want it is even more important for clients to know what for them is the best method of outsourcing, what they need from an outsourcing provider and what type of outsourcing vendor they require. If clients outsource not knowing this things can go wrong because success then hinges on chance and luck as opposed to facts and knowledge.The good news for clients that do their homework is that the outsourcing industry offers a wide range of different services. The benefit of this is that clients have a lot of choice and so can find a method of outsourcing that most appropriately suits their exact needs. Hence, from Microsoft to a one man band everyone can outsource and do so successfully. When clients outsource in a manner that is ideal for them it is then that companies attain very high levels of cost effectiveness and efficiency. It if from these success stories, where remarkable levels of cost reduction and productivity are achieved that the outsourcing sector has grown on the back of.The rewards of outsourcing can be significant but to achieve this clients must first know what they are doing. In conclusion, when outsourcing goes wrong more often than not it is because the method of outsourcing or outsourcing vendor was not appropriate for that client. It is not that outsourcing does not work, if it didn’t the most successful companies in the world wouldn’t be outsourcing. Rather it is a lack of research, and selecting the wrong outsourcing vendor that is the underlying cause behind the majority of outsourcing failures. If one puts the wrong fuel into a car, it is pointless placing fault with the engine when the car doesn’t start.