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Hidden secrets of outsourcing giants

(Important Disclaimer: Not all outsourcing giants do this!)

When bulk layoff’s and outsourcing takes place in an organisation, sentiments and morales are affected. However, what’s worse is when the entire project seems like a lost cause.  This may not always be the case. We have heard of some major disasters in the outsourcing industry and there’s a lot more negative sentiment than positive ones.

Let’s look at Outsourcing Giants Achieve Profitability:

  • Bait and Switch: Luring clients with low introductory rates, then raising them once the client is locked in.
  • Underqualified Staff: Assigning less skilled team members to projects than promised, impacting the quality of work.
  • Neglecting Ongoing Training: Investing heavily in initial onboarding, but failing to upskill their workforce over time, which can lead to stagnation.
  • Overpromising and Underdelivering: Taking on more work than they can realistically handle, leading to missed deadlines and frustrated clients.
  • Hidden Fees and Contract Loopholes: Burying additional charges in the fine print, making true costs less transparent.

Additional Factors:

Industry Matters:

Cost-cutting is more likely in sectors with highly standardized tasks, versus those requiring specialized expertise.

The Pressure to Compete:

In a crowded market, some providers prioritize price over quality to win bids.

Lack of Client Oversight:

Companies that don’t actively manage their outsourced teams are more vulnerable to subpar performance.

How to Protect Yourself:

Thorough Due Diligence: Ask for client references, case studies with measurable results, and specifics about their workforce qualifications.

Transparency in Pricing: Get a detailed breakdown of all costs and be wary of vague “add-on” fees.

Strong Contract Language: Include performance metrics, SLAs (Service Level Agreements), and clear exit clauses.

Stay Engaged: Don’t treat outsourcing as set-it-and-forget-it. Regular communication and progress tracking are key.

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