Studies on Communication Problems and Best Practices in Outsourcing

Author: Tommie Pope

Effective communication plays a major role in the world of outsourcing where folk with different nationalities, culture, and interests work in partnership to achieve their business goals. Even though it is now simple and convenient to talk to folk overseas, thanks to sophisticated technology, issues are still being encountered because communication best practices are usually neglected. This eventually obstructs BPO players to create and maintain long term outsourcing relationships.

In the first of four-part Best Practices Series 2009 released by Outsourcing Center titled'Four Communication Best Practices frequently neglected in Outsourcing Relationships', fifty six buyers who took part in the study noted that communication issues arise from :
2. Agreeing ( or not ) on the significance of'noise' or customer's's feedback/complaints
Service supplier's failure to hear the buyer

The secret to having a successful outsourcing relationship is to reach a shared understanding of one another's goals. To reach this, service suppliers and buyers must adhere to the four communication best practices that are frequently overlooked in outsourcing :

1. Service suppliers must take the'noise' into account. They pay so much attention on meeting the requirements that they fail to look into what customers consider the deliverables, so it is the buyer who ends up dealing with customers' beefs. Suppliers have to understand that'noise' is important in building an outsourcing relationship.

two. Create a communication plan for the period after the transition phase. The relationship generally runs smoothly at the start of the project when both parties understand one another's goals.
Outsourcing contract should be'crystal clear'. To avoid conflicts, there has to be no room for vagueness or enigma when it comes to the outsourcing contract.

Mutual trust must be established. Buyer and service supplier need to demonstrate that they truly listen and understand one another. For service suppliers, concentrate on the purchaser's issues and make efforts to resolve them. The same goes to buyers. Communication entails 2 or more parties, and having mutual trust is important to conquer the problem.

this study is a clear indication that communication is more than just talking to the service buyer or supplier. It is about understanding each other's issues and concerns and coming up with solutions which will work for both parties. Culture and interests may vary, but shared understanding of objectives must be established in order to develop an outsourcing relationship that's both enduring and profitable to service buyer and provider. The main thing is for buyers and service suppliers to keep the best practices in communication in mind to avoid issues.

About the Author:

Microsourcing is one of the leading Outsourcing Companies in the Philippines.

Article Source: ArticlesBase.com - Studies on Communication Problems and Best Practices in Outsourcing

How to early determine if your service provider is in trouble

Author: Kelly Boyer

Twenty five percent of existing BPO service providers will stop to operate in 2012. This is reliant on a recently published Gartner research which is part of the Special Report entitled'Assess and Manage seller risks to guard Your Business'. This is attributed to the current depression, lapses in outsourcing contracts, and not being able to acclimatize to standardised delivery models.

With these elements in mind , Gartner observed that BPO buyers must take caution before venturing into any new outsourcing contract, and should be privy to the six alert signs meaning that a service provider is not stable enough to maintain a long-term outsourcing relationship :

one. Unprofitable outsourcing deals - According to the study,'Some BPO suppliers are carrying unprofitable contract portfolios, largely springing from too-much, too-soon pursuit of deals, without a lot of thought as to the way to transition them to a standardized, rationalized, worthwhile state of ongoing operations.'

2. Incapacity to get new projects - it's a good sign if the service provider has the power to continually take on various necessities of different clients.
3. 4. Incapability to bid on new BPO deals because of lack of enough funds - Some service providers cannot take on new BPO contracts because of shortage of enough capital. Likewise, the so-called'lift and shift' methodology in which a business process is moved offshore to reduce costs because of lower wages will at last create issues for service suppliers that depend on it because they continue to need capital for the resources needed to do that outsourced task.

Exposure to banking / financial industry - With the present finance crisis, those service providers with cash coming from the finance or banking sector will be in a tight spot. If the outsourcing partner has more than 85 % of money from the banking sector, the buyer should know if this will have an impact on their business operations. Increasing levels of contract cancellation and insourcing - Gartner says that before signing an outsourcing contract, buyers must come up with a plan on what to do when contract ends.


During these troublesome times when outsourcing has become an avenue for corporations primarily to chop costs, it is crucial to pay very close attention to your outsourcing partner. Know the warning signs and be constantly conscious of what has happened in the BPO industry. Have a clear picture of what you need to achieve before signing any outsourcing contract.

About the Author:

Microsourcing is one of the leading Outsourcing Companies in the Philippines.

Article Source: ArticlesBase.com - How to early determine if your service provider is in trouble