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Outsourcing Blunders.
We've been doing it for more than 25 years. Why are we still
doing it wrong?
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Don't Get Entangled in a Long-Term Contract.
Traditional outsourcers often try to persuade companies that only a
long-duration agreement justifies the high up-front investment needed to provide
great service. A eminent writer rightly says "The suppliers are always looking
for five- and 10-year contracts, but do we have any idea where e-commerce will
be in five years' time?
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Don't Let Your Responsibilities Collide with Those of the Outsourcer.
Surprisingly, contracts are frequently vague about exactly what the outsourcer's
responsibility is versus the customer's. Without a patrollable boundary, neither
side knows with certainty what it should be doing. The result: Each side blames
the other when things inevitably don't get done.
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Don't Be a Control Freak.
Companies often go into outsourcing expecting to retain control of how the particulars are carried out. Tempting, yes. But it's a big mistake. Forcing the outsourcer to do it your way prevents your hired gun from doing what it does best—leveraging its own experience and hard-earned best practices.
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The Dark Side of Outsourcing.
Farming out the best work will hollow out your organization.
Many organizations are a shell of what they once were or a shadow of what they could be, because they give the best work to outsiders. I don't think anyone intentionally out sources the best work—that is, the most important projects and the critical business relationships—but it happens all too often.
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Outsourcing
