Think Long-Term When Outsourcing: The Risks of Short-Term Outsourcing

Many companies have learned to rely on outsourcing as their solution to the rising production and operational costs. Aside from financial savings, outsourcing can also give you the advantage of tapping technical resources and skills for specific projects and areas in the business that your workforce lacks.

Other benefits that you can acquire from outsourcing is rising to your market’s current demands and turning an unproductive department into a profitable one.

Dangers of Short-Term Outsourcing

However, there are many other things to consider when you outsource tasks to a service provider such as thinking beyond the immediate solutions, which the arrangement can provide.

First of all, transferring business-related operations from one outsourcing provider to another is a complicated process. There will be disruptions to your daily activities that may cost your company more time and money than you’re willing to let go.

As social consultancy expert, Phil Bishop, wrote, withdrawing from a short-term outsourcing partnership will require you to “gather, distill, and analyze operational, volumetric, legal, HR, and commercial data” crucial to your business.

Essentially, that’s a lot of work to take on and you need to do it quickly—only for a particular period. It’s a struggle for several companies, and after trying to manage the transfer unsuccessfully, some end up signing another short-term deal with an incompetent team that offers substandard quality in outsourcing services at lowered costs. This decision will cause your business to suffer losses that may scale down to your investors, clients, and suppliers altogether.

Why Long-Term Outsourcing?

The negotiations and preparations involved in short-term outsourcing are just as tedious with a long-term agreement.

There are benefits to outsourcing that you can’t draw from outsourcing companies you have short arrangements with, such as regular upgrading of used technology and consistently updating of the standards in security in service.

Outsourcing providers may agree to provisions beyond the usual list of services they provide if you fall under their lower value RFPs. The deal won’t be able to provide their business enough time and funds to create and develop customized solutions to fit your needs.

On the other hand, long-term outsourcing arrangements will give your provider more opportunities to learn more about your brand and provide you a service that is specifically tailored for your business.

This puts your provider on the same page with you in terms of your vision and strategies for the company—ultimately enabling you to work together and come up with collaborative solutions and strategies for your business.

You get more than just quality service, as your working relationship can potentially grow into a more stable and reliable partnership where both parties can profit.

So, while short-term outsourcing is available and may provide you quick fixes and immediate resolutions, you have to see outsourcing as a business partnership that can last beyond a decade. Quick fixes, after all, are incapable of producing long-term rewards.

If you’re looking for a reliable outsourcing company that can provide you with high standard quality service, call us, it’s what we do best.


Leave a Reply

Your email address will not be published. Required fields are marked *