- Some enterprises end up dissatisfied with outsourcing due to misunderstanding of requirements.
- Outsourcing often leads to unanticipated costs.
- Vendor dependency will prevent switching at a later date.
- Changing vendors due to unmet expectations can be very costly.
- Organizations are frequently not adequately prepared to hand over services.
Our Advice
Critical Insight
- Outsourcing is not a typical vendor/client relationship. It is a partnership and must be treated like a collaboration rather than a simple exchange of money and services.
- Most organizations have not yet reached the maturity level required to outsource services effectively and need to take more time documenting their environment and their needs.
- Doing what you do best and outsourcing the rest isn’t always the best advice. Instead, outsource those things that you do not do well as well as those things that do not drive revenue. Then reallocate the recovered resources to more strategic initiatives.
Impact and Result
- Perform the necessary pre-work to set your outsourcing initiative up for success.
- Prepare for key objections by having a strong stakeholder management strategy.
- Understand how to engage with your vendor to ensure productive collaboration rather than conflict.