BPO industry trends

3 Reasons Why Outsourcing Partnerships Fail

At a Glance

When they think of outsourcing partnerships, companies on both sides of the negotiations table envision strong, long-lasting bonds and business-enhancing strategic decisions. For the most part, the image stands true. But sometimes things go south and it’s usually because of these 3 important reasons: TRUST Successful outsourcing collaborations run on trust and mutual understanding. Client and provider, they must realize that they are, in fact, on the same team, and listen to each other as they plot their course together. Of course, BPOs are not mind-readers, and neither are clients. That’s why, from the very first contact, through the website.

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When they think of outsourcing partnerships, companies on both sides of the negotiations table envision strong, long-lasting bonds and business-enhancing strategic decisions.

For the most part, the image stands true. But sometimes things go south and it’s usually because of these 3 important reasons:

TRUST

Successful outsourcing collaborations run on trust and mutual understanding. Client and provider, they must realize that they are, in fact, on the same team, and listen to each other as they plot their course together.

Of course, BPOs are not mind-readers, and neither are clients. That’s why, from the very first contact, through the website or via telephone, both buyers and providers need to present their case as truthfully and eloquently as possible in order to set the right expectations for further discussions.

Trust is built one step at a time. By listening to the other party’s vision and goals, by being honest about current capabilities and open about future opportunities, clients and providers can ensure they have a solid base to build a thriving partnership on.

PLANNING

Diligent planning is a vital component of outsourcing due to the complexity of this type of business relationship.

The multilingual resources, processes, and technology that the BPO provider blends for a particular client need to be organized minutely, allowing for multiple variations in capabilities and requirements.

Knowing what they want to achieve is, therefore, the main responsibility of the client. The provider, on the other hand, must understand the client’s needs and priorities in order to set the appropriate milestones and prepare a smooth project transition.

But what is most important is that both the client and the supplier have all the data they need to make informed decisions and plan effectively to meet SLAs and exceed expectations. This, of course, depends on the third reason why outsourcing partnerships occasionally flounder.

COMMUNICATION

If the communication between clients and their outsourcing partners is transparent, open to all stakeholders, and, ideally, scheduled to an extent, there is nothing that can stop companies from achieving what they set out to do at the beginning of their relationship.

If, on the contrary, the chain of communication is cut short, if the feedback does not flow both ways and the access to real-time data is restricted, either knowingly or unknowingly, both partners stand to suffer.

Outsourcing works best when clients and providers communicate openly and when direct feedback, from end-customers and stakeholders alike, reaches the right departments and teams in order to drive product and service innovation.

Can you protect your outsourcing partnerships from these three risks? Absolutely. How? By paying special attention to the BPO provider selection process.