Pitfalls to Avoid When Outsourcing IT Support Resources
When done correctly, outsourcing customer service will help your business grow. It may aid in expanding operations, cost reduction, and even the improvement of customer relationships.
However, moving from internal to external services or incorporating new capabilities by outsourcing needs careful preparation and established goals to leverage outsourcing IT support benefits.
According to Deloitte’s 2016 Global Outsourcing Survey, 78 percent of businesses are satisfied with their outsourcing contracts. However, it described eight familiar places where outsourcing relationships can deteriorate and their benefits diminish over time.
These standard errors affect both large corporations and start-ups. Here is how to stay clear of them.
1. Establish clear goals and guidelines
As in any relationship, a good outsourcing partnership involves ongoing contact, and it is essential to establish precise needs and expectations upfront. “The first stumbling block is not defining the objectives precisely,” says Simon Tarsh, managing Deloitte Consulting LLP director.
Businesses should have specific standards for the outsourcing contract from the start, both internally and with the outsourcing partner. These living statements of intent will serve as a helpful guide in the relationship that offers benefits of outsourcing IT support, indicating where things have gotten off track or where the project’s scope needs to be adjusted.
2. Leave room to grow
One common source of disappointment in outsourcing relationships is the outsourcing provider’s failure to scale and adapt to the company’s changing needs. This is particularly true for rapidly rising start-ups.
To help alleviate this frustration, businesses should consider how their outsourcing needs can evolve when choosing a partner. Many businesses begin with a small goal in mind and partner with a small provider, but they find the provider often lacks the scale to scale as they grow larger. Meeting expectations is critical to ensure the benefits of outsourcing IT support.
3. Reactive vs. proactive service
Forty-six percent of the providers wait until anything is pointed out and never make suggestions in the first place. However, provisions that are drafted improperly may lead providers into a reactionary role.
Creative relationships are fostered—the need to be constructed and formed with firm expectations from the beginning. Monitoring in the outsourcing phase indicates assessment is a constant, but outsourcing requires part-time attention. There is no point going through the motions for three to five years.
4. Identify the provider’s innovation strategy
According to experts, one of the significant benefits of outsourcing is that it would enable the business to remain on top of competitors. Thirty-three percent of firms, according to Deloitte, cannot innovate. Their outsourced partners cannot keep pace with changes in the company.
The terms of the agreement are recommended that be spelled out to customers. To give a few other examples, in 2017, people are beginning to consider robotic process innovation as a year-to-round component of transactional work.
Instead of placing the outsourcing company in a difficult situation, businesses should devise rewards that enable businesses to benefit from outsourcing IT support. That could mean either growing your market, improving your profitability, or sharing in the cost savings of new product development. It must be explicitly stated how the process of creating value is funded. Often, when doing anything new, collaborations and good governance are essential, as each side needs to know what is expected of the other, both parties.
5. Ensuring the outsourcing partner has a sound recruitment and retention strategy
When it comes to success, the right people make all the difference. Businesses must work with an outsourcing company with a track record of nurturing and retaining workers. The managed IT services and support outsourcer would devote significant attention and energy to ensuring that workers are assisted and engaged continuously.
For a business process outsourcing provider such as expandFORCE, which operates contact centers worldwide, this means ensuring that the services offered in regional locations align with the local workforce’s aspirations.
6. Ensuring best-in-class training practices
A Deloitte reported that 23% of businesses use uncertified tools, meaning untrained or untested staff members in their outsourcing program, resulting in errors in their final products.
This guideline indicates that agreements should include basic skillset requirements and methods and documentation of standard operating procedures for IT support managed services. Generally, IT managed support does accept applications by job levels, not strictly.
7. Auditing for compliance
25% of outsourcing contracts would have to be terminated due to a lack of quality and operations management procedures. An old truism says, “trust but verify,” stands true when leveraging IT support services. Before entering into deals and for the relationship’s duration, it is crucial to keep organizational honesty in mind. It is critical to note that the businesses that outsource have a proper auditing procedure for the information provided by a good supplier. This ensures businesses leverage the benefits of outsourcing IT support which involves the internal and outsourcing companies.
Businesses should verify that their outsourcing partner adheres to globally agreed requirements, such as ISO, that independent third parties audit. Additionally, managed IT services and support should trust their outsourcing service providers to adhere to international documentation standards that do not expose the business to risk.
8. Ensuring systems continuity
An outsourcing partner can act as an extension of the brand, and it is critical to maintaining a strong degree of consistency between the two organizations. On the other hand, Deloitte discovered that 22% of businesses were forced to terminate outsourcing arrangements due to a lack of process communication.
Some caution against having to delegate the appropriate internal resources to collaborate with the outsourcing contractor. For one, the outsourcing firm will handle the payroll; this is a straightforward process. However, in human resources for talent development, greater oversight over those operations is needed, which is a challenge. To handle these outsourcing providers, you need smart people who understand how to run a company.
Organizations are seeking benefits of outsourcing their support need to have a contractor offer turn-key facilities to appoint the appropriate in-house staff to oversee the arrangement.
Shift management is frequently important for companies outsourcing for the first time. If you previously conducted several tasks internally and now plan to do so externally, you must determine how your company can handle the transition. Businesses moving to an outsourcing model will mitigate disruption and reap the relationship’s full benefits by following a formalized and detailed change control process.