The main fear or risk that has been a worry for companies considering outsourcing business processes has been the theft of data. However, there are more risks that plague this industry. We explore these to help you to be proactive and be able to make a better choice when choosing a vendor to minimise these risks.
Corporate Culture Differences
The manner in which the BPO vendor performs functions or goes about the outsourced tasks can vary from vendor to vendor and depending on whether they are in different countries, they might not have the same norms as your company does. The two parties may not have the same view or definition of success.
Make sure that you clearly state your expectations in writing and make sure that your service provider is on the same page as you in terms of how you define success and failure. Find out what their control structures are like, learn about their corporate policies and their norms to get an overall idea of whether they are compatible with your company’s internal processes.
Infrastructure and Technology
This is by far the worrying risk on the list. A lot of companies can talk the talk, but fail to deliver results. Ensure that you understand how your service provider hires its employees and also familiarise yourself with the technology they use. It is not always possible to physically go to a vendor’s physical premises and review their equipment and work environment and thus you cannot always tell if they can actually deliver what they claim to be capable of delivering. Consider factors like the country’s telecommunications infrastructure.