Remember Circuit City? The massive American electronics company that, in 2008, fell dramatically, even though it seemed to have everything going for it?
One factor that contributed to the situation was that they made an effort to outsource several crucial functions simultaneously, working with different vendors and experiencing varying levels of success. What was the result? An intricate web of miscommunication, inconsistent quality, and loss of direction.
Does this sound familiar? Similar concerns arise for a lot of mid-sized US organizations when they think about outsourcing. As per Andres Zunino (CEO and cofounder of ZirconTech), Outsourcing has steadily come to the forefront as a strategic solution. However, this “strategic solution” has to find solutions to its own set of problems from time to time. The dynamic nature of the outsourcing industry makes it vulnerable to issues like resource allocation, delivery gaps, lack of trust, transparency, and accountability.
The potential benefits of outsourcing are evident: cost savings, access to specialized expertise, and improved operational efficiency. However, individuals are often hesitant to move forward due to concerns regarding control, communication, and finding a suitable partner. The following article will address two prevalent challenges in outsourcing and propose innovative solutions to transform skepticism into success. The focus is going to be on the bigger challenge first, and that has to be..
Challenge 1: The Challenge of Managing Multiple Vendors at the Same Time
Imagine a company distributing its functions to multiple vendors and managing those vendors all the time. Chaos, right? When different functions are outsourced to various vendors, it can lead to a lack of harmony. Inconsistent processes, conflicting deliverables, and finger-pointing have become the norm.
And what is what is the solution to this? Consider a single-source outsourcing partner with expertise in multiple service areas. Think of it as having one expert overseeing the entire performance. This ensures consistent communication, streamlined processes, and a single point of contact for accountability.
For instance, Fujitsu America, Inc. selected Shyft as its sole outsource service provider for the TMS business and thus began the transition of key integration services, multi-vendor field services, and approximately 300 TMS service and support professionals to Shyft. In addition, Shyft gained repair capabilities that were previously outsourced by Fujitsu to another company, making Shyft a “single-source outsourcing partner”.
Fujitsu America, Inc. was able to enhance its focus on business transformation, lower specific costs and complexities, and maintain a consistent, high-quality customer experience. Which is still a dream for many organizations. However, this isn’t the only challenge. The other major challenge for US companies is,
Challenge 2: The Language Barrier: Effective Communication Across Continents
Imagine attempting to navigate a bustling foreign marketplace without being able to communicate with the locals. Outsourcing overseas can sometimes evoke a similar sentiment. Missed deadlines and misunderstandings often arise due to cultural differences, time zone gaps, and differing communication styles.
To avoid such a situation, a company should consider finding an outsourcing partner that has a dedicated client management team based in the US. This team should be fluent in your business language and familiar with your cultural nuances. Consider them as cultural interpreters, who bridge the gap and ensure seamless communication.
Jonathan Long, a business consultant, has personally witnessed the expensive consequences of choosing the incorrect outsourced partner. There was one instance where a company he consulted with hired an overseas company to handle its SEO for less than $500 per month. Shortly after being hired, the company issued a press release acknowledging that their products had been linked to health problems. It is clear that the individual did not intend to make such a statement, but due to the language barrier, there was a misunderstanding that resulted in significant harm to the brand.
Coming back to Circuit City, they attempted to manage various vendors without a central coordinator and faced challenges in effectively communicating across different locations. They should avoid repeating their previous errors. Outsourcing can be transformed from a juggling act to a successful balancing act by selecting a single-source outsourcing partner with both multi-service experience and a committed US-based client management team. The innovative model is specifically designed to address the challenges and make outsourcing accessible and hassle-free for mid-size businesses. Allow us to assist in the accomplishment of your growth objectives while you concentrate on the essential task of managing your core business.
Ready to embrace the harmonious efficiency of outsourcing and leave behind the shackles that are preventing growth? Get in touch with Menal Partners today and make it happen.