The Main Outsourcing Risks & How to Avoid Them


Outsourcing has become a big boon to the SMEs and the start-ups. But like every coin has 2 sides, outsourcing has its maladies too. It is important to understand the pros and cons of outsourcing and be proactive to counter the ill effects of outsourcing, if you have planned to adopt that strategy. With a little caution and constant reviews, you can definitely make the most of outsourcing for your organization. Here are some of the major risks involved with outsourcing and how you can avoid them or counter them:

Quality Control

One of the basic reasons you outsource your Data Entry India is to ensure data quality and completion on time. But one of the major risks that many organizations face with outsourcing is the low quality of services they provide. This usually happens in 2 cases – when you employ comparatively new outsourcing agencies which has very few experienced resources and when the resources have very little industry experience. The less experienced resources are bound to make a lot of mistakes and overlook some of the technical aspects of data entry. The resources with little or no industry experience will not be familiar with the technical terms. The best way to overcome this outsourcing malady is to engage an experienced and reputed outsourcing firm.

Work Ambiguity

This happens when you do not have a clear-cut agreement or contract with the outsourcing firm. When you Outsource Data Entry India, you have to clearly specify the scope of work, time of completion, the contract agreement and the various other terms and conditions including non-disclosure and legal binding. Once your contract clearly mentions all the terms used in the work and binds the outsourcing firm legally in it, they will be more careful about the quality of work and data security.

Information Security

This is probably a major reason many organizations are reluctant to outsource. Information Security is important for banking, insurance and healthcare centers since they deal with very sensitive customer data. In such cases, a legal binding involving both the parties involved can be adopted. This will ensure information security making it a legal requirement.

Exit Policy

Suppose you find that the outsourcing company is not performing up to your standards or are unethical, how do you end the contract? Absence of an exit policy is a major setback in the contract with outsourcing companies. By including a legible exit policy in the contract, this issue can be addressed.

Loss of Control

Once outsourced, the organization does not have any influence over how the outsourcing company accomplishes the targets. This can be a major setback when the company fails to keep up the deadlines. This issue can be avoided by including clauses for periodic reviews of the project or work in the contract by the organization. Make sure you communicate with the outsourcing vendor more often to track the progress of the work assigned.

Timing and Language problems

More than often, outsourcing works are taken up by people residing in other countries which brings with it timing and language problems. Make sure that your outsourcing vendor can comply with your timing requirements and can communicate efficiently in a common language that is convenient for you.

Outsourcing helps cost-control, quality-control and timely completion of ancillary works in any organization. If you consider the above-mentioned points while deciding on the outsourcing agency, you can easily make the most of outsourcing all your subsidiary works.