In today‘s global world, outsourcing is seen as a popular way of getting maximum work at minimum wages. However, it is not uncommon for pioneers to try outsourcing their operations in order to cut as much costs as possible as a new business is prone to fall. However, outsourcing the business and maintaining its nature (and service) promised to your customers (and potential customers) is a challenge in itself. Hence, we will discuss below the challenges along with suggestions and precautions to overcome them the way we at Leo TechnoSoft overcame them, standing tall and presenting software product engineering services to various clients outsourcing their projects to us: Following are some myths involving Outsourcing: External suppliers can reduce the manpower working on your project: This is not completely true. By outsourcing its project, the company will have fewer people working directly for it, but it would have to hire a number of employees to coordinate the outsourced work. The supplier also needs to do the same thing. And every project would always require people who need to do the actual work. In the end, the number of people working on the project will definitely increase. Managing external supplier easier than managing internal suppliers: A supplier wants business from client. After an initial good service, the client may not be satisfied from the services offered by supplier due to lack in quality. But client may not have control over supplier as supplier is a different company. Firing the supplier makes the client lose on timely supplies and causes delay in production. Hence, managing external suppliers requires more persuasion than managing internal suppliers. Outsourcing results in fewer middle-mangers: Not exactly. People managing outsourced projects or services need to manage uncertainty, persuade and nudge perhaps hundreds of people accountable. This is what a middle-manager does. Hence, the organization gets one more layer of management. Something too good to be true is that what it looks: Sometimes companies offering outsourcing services try to lock clients into long-term deals based on contract terms and pricing that will be out of date six months later. To entice them, they can brag about offering the services which they may not have or maybe not in terms of quality they promised. The inevitable results are frustration, irritation and a lack of understanding and insight into why the sales promises of outsourcing are not meeting up with its delivery realities
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