The Disadvantages of the Business Outsourcing Trend

In this day and age, outsourcing business processes to third-party companies has been the trend that almost every company is trying to emulate. Though outsourcing is indeed a business strategy that works for some companies, there are also some unexpected drawbacks associated with it. This is the reason why a lot of negative criticisms have been thrown to outsourcing in terms of (a) language skills, (b) quality of service, and (c) security.

When outsourcing is combined with off-shoring to regions with different language and culture, expect that dissatisfaction from customers will come in. This happens mostly in call centers wherein English may not be the primary language. Customers are having difficulties understanding call center agents due to variations in accent, word usage and sentence construction. Though product knowledge may be excellent, language barrier is undoubtedly one of the factors that lead to conflicts and misunderstandings.

If there is communication gap, quality of service is at stake as well. Another factor is that since the main purpose of outsourcing is to reduce costs, other services may be put in jeopardy due to lack of necessary resources. Though questionnaires may measure quality of service rendered, an unbiased Service Level Agreement (SLA) should still be prioritized to clearly define the necessary deliverables for each business process.

Security has always been an issue related with outsourcing. The company may not have the capacity to control each and every transaction done by the third-party company, therefore resulting to some legal security and compliance issues. There are even staff members from the third-party company who were penalized because of getting the most out of being exposed to confidential company and customer information. This is indeed one of the areas of outsourcing that needs to be addressed as well.