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5 mistakes firms make when outsourcing (and how to avoid them)

By tipustg

July 19, 2024

Ever feel bogged down by compliance, with never enough time to focus on higher-value work? Many firms get caught out when they don’t have the right plan in place. Without a clear and structured workflow, the day-to-day operations can quickly become chaotic, leading to missed deadlines and lower-quality work. The implementation of structured workflow planning involves defining tasks, setting realistic timelines, and ensuring that everyone knows their role. With a solid plan in place, you’ll have more time to focus on work that will drive your firm forward.

1. Inconsistency

We know you’re busy. And it’s hard to find the time to train your team. However, poor training leads to more mistakes, lower productivity, and more rework. Investing time into comprehensive training ensures that your team is well-equipped to handle their responsibilities. This inevitably reduces errors and improves overall efficiency. Properly trained employees can work more independently, freeing up your time to focus on more critical aspects of your business.

2. The Wrong Model

Which one works best for you? BPO where you set up another ‘office’ offshore (Offshoring) or Transactional Outsourcing (Outsourcing) or is it a Hybrid Model like the one Tipu implements? Choosing the wrong outsourcing model can completely drain your resources, resulting in a stressful and ineffective outsourcing journey. Whichever model you choose, it must align with your firm’s needs and capabilities. At Tipu, we offer a tried and tested model, designed to give you the best tools and systems in the industry. Click here to find out all about it.

3. Premature Delegation

Yes, you might want to reduce your to-do list, but assigning tasks before an employee is fully prepared leads to more errors. Premature delegation without proper training and clear instructions can result in subpar work and a need for rework, which defeats the purpose of delegation in the first place. Before delegating a task, ensure that your team members have everything they need to successfully complete it. This means mapping your workflow process, defining how best to compile a job, implementing it into your software, and sharing it with your local team first THEN remote teams.

4. The Wrong Partner

We’ve seen this one a lot. Firms choose an outsourcing partner with a “one size fits all” approach. This usually results in lower-quality work, high staff turnover, and more time spent on training. With this in mind, it’s essential to find a partner who understands your specific needs and can provide tailored solutions. A good outsourcing partner should act as an extension of your team, aligning with your goals and values to deliver consistent, high-quality results.

5. The 1% Commitment and 100% Hope Strategy

1% Commitment

If you haven’t committed to defining your compilation processes and guidelines for your existing team, you will be exporting your ingrained workflow problems off-shore. 100% commitment means you map your workflow process, define how best to compile a job, implement it into your software, and share it with your local team first THEN remote teams.

100% Hope

Instead of planning a pilot project with your provider and your team – you hope it will work out, start sending jobs, and then get frustrated when it doesn’t work… sound familiar? Instead, operate a structured pilot with a select set of books that follows your best practice before sending the actual workflow. This will take longer – but the fastest way to ruin an outsourcing project is to take a shortcut!

What next?

By avoiding these common outsourcing mistakes, you can ensure a smoother, more productive journey that ultimately leads to better business outcomes. Remember, effective outsourcing is not just about offloading tasks; it’s about creating a strategic partnership that supports your firm’s growth and success. You don’t have to reinvent the wheel either. As we’ve done this for multiple firms across NZ and Australia, we have the right tools and templates for every step of the process. A good outsourcing partner should act as an extension of your team, aligning with your goals and values to deliver consistent, high-quality results. If you’re interested in working with Tipu, get in touch to find out more.

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