Risks Associated With Outsourcing and How BruntWork Overcomes Them
Bruntwork CEO Winston Ong is confident that outsourcing will continue to grow exponentially in the years to come. There may never be a better time to learn more about the industry than now.
Experts are heavily debating the impact of IT Outsourcing Services Company. Like many tools, it can have significant benefits, but it’s also not without risks.
While some concerns, such as potentially higher outsourcing costs because of the eroding value of the US dollar, can be addressed using financial-hedging strategies, other challenges may be more difficult to circumvent.
Before business owners can move forward and utilise outsourcing as a business tool, they must know the risks and challenges and how to best overcome them.
Loss of Control
Despite the many benefits of outsourcing, businesses shouldn’t go down this path until they’ve identified and addressed the potential drawbacks.
Experts believe one of the most glaring risks in outsourcing is that though owners and managers can provide direction, they need to give up some control over tasks and output.
Some employers are concerned that since contractors such as virtual assistants are not working on-site, monitoring their productivity and maintaining a certain level of control can be challenging. Some experts argue this doesn’t always come into play, but it’s one of the biggest potential drawbacks.
Communication Gap
Researchers have found that communication is essential to success in the business world. Yet, a significant percentage of managers’ report miscommunication between management and the workforce appears to be a common problem.
This poses an even more significant concern for business owners, anxious that this gap will get worse when tasks are outsourced.
Unforeseen Transaction Costs
The main motive behind IT Outsourcing Services Company is gaining a competitive advantage through reduced operating costs. However, if it leads to any hidden cost, then it becomes a risk.
While most businesses conduct due diligence and compare pricing and rates, some researchers have seen the trend where companies have been hit by unforeseen costs and charges later in the transaction. These could add to the total cost, pushing it beyond the original budget.
How Bruntwork Overcame These Concerns about Outsourcing
Outsourcing may have become a standard business tool that enables owners to focus on core operations, but research suggests there is still apprehension about the risks it poses to companies.
Bruntwork CEO Winston Ong says the key to overcoming these risks is to carefully consider them, pay close attention to the details, identify how significant their impacts can be and work towards mitigation.
“Many business owners worry about loss of control and issues with productivity if they outsource some tasks. Often, this can be addressed when companies discuss the expected quality upfront," says Ong.
Researchers agree with Ong as companies that have successfully outsourced tasks clearly defined project requirements and output during the initial stages of the project. When businesses communicate this clearly, the business process runs smoothly, adds Ong.
Ong also suggests employing some productivity management tools to clock in the work hours of each outsourced employee accurately. “This way, businesses can see how long tasks actually took and even track overtime hours to pay the vendor accordingly," he further explains.
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