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Wrapped-up Outsourcing FailureIf you have recently attended a seminar of business managers, analysts and technology gurus then you must have come across a discussion on how miserably outsourcing is failing. A friend of mine was also a part of a similar gathering a couple of months back. I was surprised to know through him that how cleverly such failures are being covered up by some well known organizations! The higher management is reluctant to let the cat sneak out of the bag to save the axe from its investors. The financial condition of such organizations began a down-hill journey even before the recession began.
Offshore outsourcing, a cost-effective strategy for organizations, is perceived to be successful. It is a high profile decision to shift local economy offshore which is fast becoming unpopular with domestic, educated citizens and politicians. If the decision taken does not serve its purpose then it is very likely that individuals come under the scanner to the point of loosing their jobs. The failure of outsourcing needs to be analyzed by professionals, but first such failures need to be reported. The individuals responsible for delegating work offshore would not report and hence the root cause of the problem remains hidden or rather we should say, it remains wrapped up. Moreover, the problems that surface are not financial, but operational. Such issues can have dozens of reasons. The realization itself escapes the brains that there could be a more practical rationale to it. The consequences of such cover up leads to heavy losses to the organization in the long term while securing the jobs of decision makers.
This does not mean that all outsourcing fails, but as discussed in seminars these days, there are prominent examples of organizations and industries where it is failing wretchedly. The reason cannot be pin pointed to cultural differences or geographical distances. Surprisingly enough, the basis is a very important yet misjudged role of proper communication in outsourcing! Let us understand it in detail. In an organization, employees and employers need to strictly follow a code of official and unofficial communication. All the work assigned follows proper authorized channels of communication. In outsourcing work such channels are severed. The instructions are passed down a chain of executives who may not be remotely related to the real job of outsourcing. Where there should be a constant interaction between the concerned parties or people involved in outsourcing, there is instead no streamlined process for specifying the task to be done. Due to deficient specification and a complex web of communication, the organization has to face adverse effects which prove suicidal.
Cost-efficiency is although the
apparent benefit of outsourcing, but how detrimental outsourcing can be is not
so evident. The benefits are not weighed against the real risks in the real
market scenario. In addition to this, the benefits seem to come sooner while
the problems take time to develop. Apart from poor management of resources and
blame game developing as the clashes frequent Source: Free Articles from ArticlesFactory.com
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