Why IT Outsourcing Fails
Offshoring/Outsourcing comes with risks and it also fails at times. If one analyzes reasons for failures it clearly comes out that none of the possible reasons are unsolvable mysteries but they just require planning and mitigation at the right time. See the table below
| Reason for failure |
Why failure happens |
What to do after |
|
Outsource the wrong work
|
- The outsourcing partner did not measure up to expectation
- new to outsourcing and immediately started outsourcing the core and critical parts of your business
|
- its better to start small with non critical conditions
- Dont expect immediate changes in productivity
- Do not expect enhance performance level immediatelly
|
|
Expecting savings overnight
|
- You feel disappointed with the productivity and performance levels.
- You feel a lot of precious time and effort went into trainings, travels and knowledge transfer to offshore teams
- You feel too much interaction is required between the provider team and your team for managing and executing work offshore.
|
- A proper knowledge transfer strategy prepares the provider for challenges of your work.
- Running a Pilot ensures that issues are worked out and the foundation is laid for the provider.
- In long-term relationships, conduct yearly reviews. Assess ability of supplier and consistency of performance
|
|
Onsite team feeling unsecured
|
- Your employees become unsure of how outsourcing will impact their jobs.
- In effect they resist and do not cooperate with offshore teams as a result the outsourced work suffers.
- Insecurity leads to rumors within your organization and management may reverse the change.
|
- Before outsourcing, educate your people. Give them different role and responsibilities if possible and align them to company goals.
- Honest communication with your employees will reduce resistance.
- Senior management needs to be ready to address employees and rest the rumors.
|
|
Insufficient operational readiness
|
- Communication with an offshore team requires improvement in network and security policies. A reliable and cost effective telecom back bone is also a must.
- Without proper planning; your communication with offshore team may suffer and be cost ineffective
|
- Prepare an infrastructure which enables your managers to smoothly monitor work offshore.
- When going in for offshore outsourcing, make sure your network and telecom backbone are ready, reliable and cost effective
|
DreamReal at Promote Cameroon
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