Red Flags in Outsourcing: 5 Signs You’ve Chosen the Wrong Outsourcing Partner

Is your outsourcing partner doing your business any good? Here are 5 signs that you might have chosen the wrong one.

Many startups and small to medium companies look to outsourcing as the best solution to achieving sustainable growth and profit. The lure strikes them strongly because the results are transparent and the “assist” comes affordable. Whether they need to hire a small customer service team to promptly reply to queries or a creative content writer to write engaging content for their website, partnering with an outsourcing company is key.

However, not all businessmen are fortunate in finding the right outsourcing partner. This is usually the result of the wrong assumption or failing to ask the hard but right questions. The sad thing is when you’ve partnered with the wrong outsourcing partner, it’s like having a fish bone stuck in your throat – you can’t swallow and you can’t spit it out.

Here are 5 signs that indicate you’ve chosen the wrong outsourcing partner:

1. Decreased Client Satisfaction

Client satisfaction is the top priority of any business, for when a client is satisfied with a business’ product or service, it’s likely that that business will be recommended. If you see that your outsourcing partner doesn’t give the same level of importance to your client as you do, doesn’t give the effort to understand their needs, and is not flexible enough to bend his approach to serve them better, then they’re giving a very poor quality of service. Poor quality of service aggravates to client dissatisfaction. This is a case where you need to immediately step in or else have your company be stricken with a bad image.

2. Lack of Intent

An outsourcing partner is expected to give you full support to keep the level of service delivery at a high standard. When your outsourcing partner often cites contractual terms and conditions, fails to deliver projects on time and gives excuses, a lack of intent exists. It’s difficult to work with such a partner who doesn’t take tasks seriously and doesn’t exert full potential. It’s better to end the partnership rather than feel the dreadful effects of an uncommitted partner.

3.High Attrition Rate

An outsourcing company that prefers a temporary workforce is short-sighted and unstable. If your outsourcing partner has an employee base with a high turnover rate, it means there are fluctuations in service quality. There’s usually poor labor policies and continuous labor conflicts as well, which pose a threat to your clients. It’s always best to work with a company that has a long association and good relationship with the employees because it means they have a good grasp of giving value to relationships, be it company to employees or employees to customers. Your business is assured of experience, consistency, and stability.

4. Conflicting Values

The importance of a shared vision is not only for marriages but for business partnerships as well. It’s essential that you and your business partner work toward the same business goals and agree on how to achieve them. If you are incompatible with your outsourcing partner with the way you approach strategy and financing, issues may arise which can affect the ability of your business to succeed.

5. Poor Financial Health of the Outsourcing Partner

Verifying the financial records of the company you associate with is your responsibility. Check the company’s balance sheet, current assets and liabilities, current ratio, non-current assets and liabilities, etc. Knowing the financial state of the company will help determine whether it’s suitable to partner with or not. A company with financial problems shows that is is incapable of managing its resources and working with one will only become a liability for your business.

Cost is the biggest factor on how startups and small businesses choose their outsourcing partner. But remember, cheap is not necessarily the best. Do your part in making ample research in choosing your outsourcing partner. Don’t just go by word-of-mouth but go by specifics. Furthermore, it’s wise to have a plan B, just in case the partnership fails to live up to your expectations.

Save your business from the burden of a bad outsourcing partner. Contact us now and we’ll help you grow your business and keep it moving forward.