To large-scale businesses and a number of small entrepreneurial firms, the idea of outsourcing is the pot of gold at the end of the rainbow. As companies want to be liberated from unwanted administrative and clerical functions yet still enjoy an entirely profitable organization, businesses from all-over the world have plunged into this wonderful offer of technology as a means for storing, retrieving, disseminating, or processing information that goes beyond the limit of time and location.

However, some commentators have posed several issues against outsourcing and have actually described the process of transferring business operations to a third-party as “time-consuming, complex, and perilous.”

One study in the US enumerated six most common outsourcing mistakes that companies commit when they hastily decide to embrace the idea of outsourcing. One concern is this: proximity, telecom infrastructure, and cultural and language barriers could possibly turn a company’s dream into one terrible nightmare.

Concerns regarding the proximity of the service provider probably stemmed from possibilities that computers, which links the company to their outsource agency and vice versa, also have limitations and untimely breakdowns may mean loss of a huge amount of money. Companies would therefore have to make sure their outsource provider is reliable and efficient in handling technical problems. A good outsource provider bears a reputation of being able to still carry out their functions if and when technical difficulties arise. Researching on the backgrounds of outsourcing firms and reading testimonials from satisfied clients would be good references when in the process of deciding which firm to contact.

Cultural and language barriers may also pose relational and ethical issues between the company and the third-party. As the businesses and the outsource firms operate in different societies possessing a variation of norms, there are chances that operations are not done the way the company wants them to run. In order to avoid this, communication lines between the company and the outsource provider must always be open. It would be of great advantage if the company who wish to do outsourcing would comprehensively lay down their terms and conditions to the outsource provider before signing a contract with them.

As regards language barriers, companies are encouraged to also study the language proficiency of the service providers. It is also best to note that good outsourcing firms ensure that they study the culture of their clients while doing business with them.

Bottom line: One of the best ways to avoid the perils of outsourcing is to make sure that the service provider is reliable enough.

If you are looking for an outsource service provider or if you know someone who is looking for one, you may want to consider these facts on the Philippines being one of the leading global outsource service provider.

As of December 2007, the Philippines has been identified as one of the top 30 countries in the world that provide offshore services. Just recently, the Philippines was voted as the most preferred outsourcing location by companies in the United Kingdom. The Philippines is identified to have many years of experience in information technology enabled services. Compared to other Asian outsource providers, the Philippines boast of a vast population that speaks English with American and neutral accents. Filipinos are also known to be very much exposed to Western culture and the global business.

You see outsourcing isn’t at all as complicated as some perceive it to be. If and when done the right way, outsourcing would still be the pot of gold. And here’s the plus: the pot of gold doesn’t have to be at the end of the rainbow. It is always within their reach.

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