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July 01, 2009

Why I hate outsourcing - The Responsibility Gap

Untitled I will admit that there is a time and a place for outsourcing, but I still hate it. Why? Because it adds an additional complexity, and I hate making things more complicated than they need to be. It typically adds extra steps to process which cause interrupted communication and loss of responsibility. It's what I call "the responsibility gap".

What this means, for example,  is when you are in contact with an outsourced provider and they are dealing with you and you get the feeling that they just don't give a shit. You're an inconvenience to them. They've done the deal, signed the contract and oh god now they actually have to meet the obligations of the contract. There is a perception that you aren't their customer and that there is a safe wall of Bureaucracy betweeen you and them that will protect them.

Outsourcing is also a cop out. I've seen plenty of companies that could do it better themselves but they are just too lazy to do it or whom are so keep on penny pinching they shaft their staff or customers with appalling outsourced providers.

I've rarely had a good experience with outsourced providers. I've rarely seen companies who use outsourcing and it works well for them. It always ends up costing more than they think and they are more often than not unhappy with the service levels.

Whatever happened to taking care of your own customers - both internal and external?

What have we become?

- TPN


Comments

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We are going through this right now, and it is quite astounding to see the level to which money (above all else) drives our motivations. Service levels are not that good from our outsource partners, but instead of complaining about this, we simply shifted the goals and said that our customers dont really care about the timings. Really??!!
What is strange to me is that the high level of outsourcing today, from all companies, undermines research which suggests that the staff's motivation is not entirely money focussed. They want more work/life balance before more money, yet the companies for which most of the work are only interestd in the bottom line.
Now I am not entirely stupid and know that companies must make money, but surely cutting back on your profits (which you will still have!) a bit, will only engender you to the public and your staff.
But then agan,maybe thats why I am not in those positions.

The best thing that a company can do in this time of recession is give back to its clients the time and financial resources that would normally be spent in recruitment, training and retaining professionals by outsourcing non-core items.

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