Outsourcing Pitfalls: Common Issues And How To Avoid Them

So you’ve heard a lot of good things about outsourcing, about how it can help scale your business to the next level, and you’ve finally decided to give outsourcing a try.  Unfortunately, things haven’t been going as smoothly as you have hoped, and that has left you wondering what went wrong.  As with all business ventures, there is an element of risk when you outsource.  To reduce or even eliminate these risks, you have to be aware of the potential outsourcing pitfalls that can stop you from unlocking the full potential of your remote workers.  There are a handful of them, and each one will be discussed in this article.

Language Barrier

Language barrier is one of the common outsourcing pitfalls.

One of the most noteworthy benefits of outsourcing is gaining access to a global talent pool of remote workers.  While you can easily find a skilled person in Asia, Latin America, or Eastern Europe to work for you remotely, this also means that there are likely going to be issues in communication.

One of the biggest mistakes you can make when outsourcing to a person who lives in a country that speaks English as a second language is to assume that there isn’t going to be a language barrier.  You have to take into account the grammar, accent, and pronunciation hindrances.  If you’re outsourcing parts of your business to workers who cannot speak English fluently or do not speak English as their first language, you will spend considerable time getting your message across.

This is one of the outsourcing pitfalls you can avoid by communicating frequently with the remote worker.  Follow up each verbal conversation with a written summary so you can make sure you are both on the same page. Provide feedback and encourage your remote employee to ask questions, and keep the lines of communication open.

Cultural Barriers

CULTURE

That’s right.  You will have to deal with cultural differences when you outsource.  This is one of the outsourcing pitfalls you have to be aware of.

You may notice that the remote worker you hired isn’t as proactive as you wanted him to be.  No, he’s not taking it casually by putting minimal effort into your project, and he’s not trying to say that he doesn’t want to put effort into thinking things out on his own.  It’s simply because he lives in a society where he is expected to do what he has been told.  A society where people in positions of power find it repulsive to take inputs from their subordinates.  So when you give him vague instructions and leave him alone to work out how to achieve them, he will more likely than not fall short of your expectations.  You have to understand that this attitude is very deeply ingrained in the culture.

Also, some cultures tend to be more hierarchical, like India for example,  They are less accepting of flat organizational structures.  An entrepreneur who had a lot of experience in dealing with remote workers from India explained that generally, Indians are ambitious and are eager to climb the career ladder.  Now, here lies the problem.  If you have a flat organizational structure, an Indian employee may view it as having limited opportunities for career advancement.  An increase in salary won’t be enough to make him happy if there is no change in his job title, and as a result, he is likely to leave.

These are just some examples of cultural differences you have to deal with.  Fortunately, this outsourcing pitfall is easy to avoid.  Once again, you need to communicate frequently with the remote worker you hired.  Learn more about him and how he does things.  Explain that you want him to show some initiative and that ideas are welcome.  Tell him you don’t need to guide him every step of the way.  Tell him about how things work on your side of the world and show him what is expected of him.

It helps if each side learns more about how people from the other side think and behave.  If you are aware of these cultural differences, you will find a way to work effectively together.  And once you start working with him long enough, he should have a good idea of what you want to do.  Remember, communication is imperative.

Time Zone Difference

Timezone difference is another one of the common outsourcing pitfalls.

When working with a remote worker, you will have to find a way to deal with time zone differences.  It’s challenging to communicate anytime you want when you are in different time zones.  This can be challenging, especially if your remote employee is working on a project that needs requirement clarification, so back-and-forth emails and calls are required.  You definitely don’t want him to waste time reworking things if he misunderstood your instructions.

The easiest way to solve this issue is to ask your remote employee to work the same office hours as you.  That way, you can make sure the work is done in a timely manner.  If your remote employee agrees to this type of arrangement, then you don’t have to worry about this potential outsourcing pitfall.  Of course, it’s entirely possible to allow your remote employee to work on his preferred hours as long as there’s an overlap in working hours for you to set times for communication.  Make the most of these overlapping work hours to exchange real-time information with your remote worker.

 

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Not Screening Properly

interview

The hiring process takes time, so you have to be patient.  You can’t possibly hire the first person who submits his application.  You have to weed out the unqualified candidates.

You have to spend considerable time vetting applicants to see if they are the right fit. Write a clear description of the role you want filled.  Ask your applicants to answer specific questions in your job post.  Like, for example, how long they have been doing certain things.  And use this as a chance to find out how well they can follow directions.  If an applicant fails to follow the directions, you can tell right away he’s not the person you’re looking for.  You don’t want to hire a worker who can’t follow simple instructions, so don’t be afraid to narrow down the field.

Set up video calls as part of the screening process because it’s important to see their facial reaction and body language when they are answering your questions.  Listen to the tone of their voice.  Voice-only calls will do if they can’t do a video call.  Not to sound too cynical, but there may be instances when an applicant will just tell you exactly what you want to hear, especially if it’s a one-off project that requires money upfront before they did the work.  You have to be careful because these people are only putting on a fake image.  This is why some companies prefer to do business with a reputable outsourcing provider.

That being said, there are a lot of good remote workers out there.  Just screen properly if you do the recruiting yourself, and pay attention to customer reviews.  If you like to learn more about what to look for in a good employee, give this article a read.

Setting Expectations

Not setting proper expectations is another one of the common outsourcing pitfalls.

This is one of the most common pitfalls when outsourcing.  To avoid this, take the time to set proper expectations from the start.  It’s best to be clear from the start so you can avoid misunderstandings before they become larger issues.  This is crucial in any relationship, as failure to do this can cause frustration and disappointment.

Time is needed for both of you to adjust to each other and identify the best ways to work together.  The fact is that there are always going to be rough patches along the way and that means a learning curve for everybody involved.  You have to establish clear goals and objectives, and both of you should understand each other’s expectations.

Get Your Contracts Right

contract

This is one of the outsourcing pitfalls you shouldn’t ignore.  Don’t leave yourself unprotected.  You need a written, signed, and dated agreement in place that safeguards you and your business.  This will save you and your remote worker the hassle of dealing with future misunderstandings and disputes.

The document should contain details of what you are expecting from your remote employee.  That includes the scope of services, quality parameters, pricing model, intellectual property rights, contract length, and contract termination provisions should the partnership prove unsuccessful.  You can include a non-disclosure clause as well if your remote employee is going to be given access to any confidential or proprietary information.

Get your remote employee to sign this clause to protect any confidential business information.  You certainly don’t want to see someone steal your mailing list.

If you want to know more about outsourcing contracts, check out this article.

Wrapping Up

As they say, knowledge is power.  So if you are aware of these common outsourcing pitfalls, you will know how to deal with them from the start.  Hopefully, you’ve learned a thing or two from this article.  If you want to know more about outsourcing, give this article a read.

Check out OnlineJobs.ph if you want to hire someone from the Philippines.  They have the largest database of Filipino remote workers.

* Disclosure: The link above is an affiliate link, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.  To find out more about our view on affiliate products, please see this page.

 

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