There are no shortages of stories about failed outsourcing attempts – many companies have simply been unable to make it work.
- A survey of real outsourcing customers revealed that:
- 58% failed on their first attempt to outsource
- 62% failed to meet acceptable productivity levels;
- 78% found it took longer to set up than expected;
- 74% found it cost more than they expected; and
- 11% lost their initial investment.
- Common failures with outsourcing
- Lack of process
- Insufficient training
- Lack of specific knowledge within an industry
- Low productivity
- Cultural imbalance
- Inability to find the right staff
- Technology issues
- Difficulty retaining staff
Choosing your outsourcing partner
One common mistake businesses make when choosing an outsourcing provider is not carefully checking their staff retention scores. High staff turnover is a major factor in failed outsourcing attempts because it is often overlooked. High staff turnover dramatically increases costs, reduces productivity, and destabilizes the entire team.
When choosing your outsourcing partner, you need to take into account their longevity, profitability, experience, service offerings, and their customer satisfaction scores. They need to be able to demonstrate a proven track record of delivering successful outsourcing solutions.
A successful outsourcing partnership requires both a proven outsourcing provider and a commitment from the customer to invest time in training, processes, and staff engagement.
Commitment to the team
Having a great outsourcing partner is not enough to guarantee success. You must commit the appropriate time and resources to ensure that your staff are well trained and have the tools they need to maximize their productivity. If you engage with your team, you will usually see increases in job satisfaction, loyalty, and outcome delivery. Creating a great remote team does require some effort, especially in the early stages, but the benefits quickly become apparent.
Cloudstaff enjoys a staff retention rate of over 98%! This is an incredible result when compared to the rest of the industry.
The outsourcing sector is currently in a high-growth phase, with some providers growing up to 10% per month. If your outsourcing partner cannot support that growth rate, their quality of service will suffer as a result.
In outsourcing, the cheapest options may be the ones that cost you the most. Price should not be the only criteria for choosing your outsourcing partner. There are many factors that contribute to a successful outsourcing solution. Outsourcing only saves you money if it works!
Cloudstaff has worked very hard to balance the costs of our retention and engagement programs and the resulting benefits for our customers. The cost of these programs actually results in recurring savings for the customer and increased productivity.
You need to ensure that your outsourcing provider adheres to the local laws. The legislation is often complex, confusing and hard to implement, but failure to do so can result in severe penalties, including hardware confiscation, office closures and even jail time. Your outsourcing provider needs to have a detailed knowledge of the local laws and their operations team needs to adhere to them.
Sounds a bit scary?
Don’t worry, you can trust Cloudstaff to take care of all of these things for you. We are experts in delivering successful workforce solutions, and we can make outsourcing work for your business. We are committed to helping you get the most from outsourcing and providing a customer experience that is second to none.
Cloudstaff’s personal Account Managers and Success Managers are highly trained industry experts ready to help onboard your team members and get you on the right track. In the first few weeks, they help you set up and establish the team’s cadence and establish your core KPIs.
Get the whole story!
This article was taken from the book, “An Insider’s Guide to Outsourcing” written by Cloudstaff’s CEO, Lloyd Ernst. It is based on his extensive experience in the industry, and was created to address many of the misconceptions about modern outsourcing.
It explains why the Philippines is the perfect place to base your remote workforce, and discusses common mistakes businesses make, the Philippine culture, laws and typical business practices. You can download your free copy by clicking the button below.
Cloudstaff has engaged an external auditor to provide accredited staff retention scores. The current scores are generated monthly from HR data. Please contact us (firstname.lastname@example.org) if you would like to know more about these figures and why they are so important.