Every thing you do is fraught with risks.
More so when you are running a business.
Definitely so when you have outsourced some of the operations of your business.
Take cognizance of this fact.
The key to mitigating the risks associated with outsourcing is to first, identify those risks before taking the decision to outsource.
The risks should be examined closely and their effects on your business should be assessed and quantified.
This should be factored into the revenues of your business before you take the decision.
If it is imperative that the tasks identified are outsourced, then take the initiative to prepare a back-up plan to take care of any contingency.
Let us have a look at some of the problems with outsourced jobs.
*Locational issues - When an outsourced job is done offshore, there are issues to consider like the local language spoken, laws of the country, restrictions in trade, political regime ruling the country, issues of cultural differences and most importantly, difference in time zones.
The areas to where the jobs are outsourced should not be disaster prone zones.
Earthquakes, typhoons and other natural disasters can play havoc with your business when you have outsourced jobs to such locations.
*Issues with infrastructure - Almost all the big businesses have off-shore operations.
With threats of terrorism looming large, break-up in communication lines is one vital issue which should be recognized.
Before deciding to outsource, take into consideration, the availability of communications and power facilities in the off-shore zones.
It is imperative that connectivity has to assured 24/7 for 365 days of the year.
*Service provider related issues - When locating a service provider, it is vital to check the background and experience.
It would be best to go slow initially.
Observe the service provider's capacity to deliver, quality control and time management.
Expectations from the service provider have to be clearly communicated.
Once a task is outsourced, it does not mean 'out of sight, out of mind'.
An element of control has to be maintained to check if expectations are met.
Feed back to the service provider is essential to keep the tasks outsourced, on course.
* Human Resources related issues - People make a company.
The Human Resources available with a company have to be kept in mind when tasks are outsourced.
It pays to keep your eyes and ears open.
Reports of high turnover will derail the execution of your outsourced tasks.
*Security related issues - With reports in the newspapers of frauds and leakages of information, it is necessary that contracts are drawn up to include damages in case of lapses in security.
Performance guaranteed contracts are one way to deal with this issue.
There are countries like India and China where much of the work is being outsourced to.
Companies which have outsourced to these countries are aware of the problems and the associated risks when doing business in these countries.
Risks are normal and it would be best to take preventive measures to avoid risks.
Close monitoring and clear communication would go a long way in preventing problems with outsourced jobs.