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Offshore Outsourcing Companies

Should I Outsource My Service Requirements To Outsourcing Companies or Not?

Outsourcing business services like call center, back office, healthcare etc to outsourcing companies in India has turned out to be the most common idea since many believe and have experienced the benefits of outsourcing. However, there are some people who do not believe in offshore outsourcing.


There are two sets of people who are left with questions whether to outsource or not, even when they are convinced that outsourcing is beneficial.

Those two sets of people are:

1. Fresher to the outsourcing industry

2. Experienced- one who has outsourcing experience- Who have had a bad outsourcing experience.

(My suggestions for both are mentioned below.)

1. Fresher to the outsourcing industry.

There are several instances that a fresher want to check how outsourcing works. They want to check the pricing, compare the pricing with their expenses if they are planning to do it in-house and see if it works out. Likewise, there are many reasons that a fresher wants to do it in-house. It is may be because of reasons like security of the information, quality work, quick turnaround, love on their own team, target oriented, being a boss for a small or big team etc.

A fresher to outsourcing field are concerned about many things. Below are some important questions that arise:

1. What are the payment terms?

2. How do I pay or mode of payment?

3. Do I have to pay in advance?

4. What if the outsourcing company turns out to be a fraud?

5. What if I waste my time, money and effort on outsourcing if I don’t get what I want?

6. Will the company be efficient, good, low price tagged, quick, professional and honest?

7. Should I sign up any contract/agreement and what would be the terms and conditions?

8. What are my benefits?

9. Will I get what I want at the end of the day?

10. Can India do it?

My suggestions to a fresher who is thinking to step in to the outsourcing world.

I will say, “Yes, please OUTSOURCE.”

I will answer all the above mentioned concerns that a fresher may have.

1. What are the payment terms?

Payment terms depends on company rules and policies. Basically, most of the outsourcing companies have common terms. Like, payments should be received in 5 business days from the date of invoicing, outstanding payment will be charged 3% per month. Project will be paused if payment has not been made before the due date etc.

Hope I am not scaring you!!! These are just examples. Rules are made to avoid tough situations. If you are a genuine customer, you really do not have to worry.

2. How do I pay or mode of payment?

Checks, Wire transfer, PayPal, Credit Card

3. Do I have to pay in advance?

Yes or No it depends on outsourcing companies. It may vary from 30% of the advance to 100% of the advance. If you do not want to pay advance and if you are skeptical about the outsourcing company, you could ask for a FREE 3 DAYS TRIAL.

4. What if the outsourcing company turns out to be a fraud?

You can ask for references from the outsourcing companies or company and talk to all the references and know their experience with the outsourcing company. You can do a free trial to evaluate.

5. What if I waste my time, money and effort on outsourcing if I don’t get what I want?

Companies are serious in business. Outsourcing companies invest on technology, infrastructure, manpower, training, quality, recruitment etc to satisfy their customers and earn a little.

“Branded items will always have marketing costs added!”

You can get the same quality and best pricing from other outsourcing companies as well. You can evaluate the team by their quick and prompt response to your emails or calls at the first point. Response time can be within 12 hours. Secondly, ask for client satisfaction record or reference. You can evaluate when you read emails or when you talk to someone from the company. You can check out the centers and the team in their website or by their presentation. Ask the outsourcing company to do a conference call or a web session along with their team so that you could evaluate them as you talk to them. If you are not sure of the team, then you can switch over to other outsourcing company.

6. Will the company be efficient, good, low price tagged, quick, professional and honest?

Yes. You may not be able to travel across the sea to physically check out your outsourcing company but you can check them by what they have achieved in client satisfaction. As I mentioned above in point # 5, you should talk to the team and references.

7. Should I sign up any contract/agreement and what would be the terms and conditions?

Yes. You should sign up agreement and or NDA. You should be providing one to the team with your terms and conditions and also check their terms and conditions.

8. What are my benefits?

Outsourcing benefits are known; low price, quick turnaround, quality work, time zone advantage, data safety, reduced risk etc. You do not have to waste time in recruiting a new team and train them and ensure they give their best. You would end up paying more if you do it in-house. Since the job is done in India, you can pay less when compared to US, UK, Australia etc. You can save up to 50% of your in-house expenses. Outsourcing benefits you to reduce your overhead costs, management costs, infrastructure costs, technical costs etc. You can concentrate on your core business if you outsource.

9. Will I get what I want at the end of the day?

Absolutely yes! You will be satisfied with the service if you have understood your outsourcing team or outsourcing partner well. You need to analyze your team at the first stage of your contact with the outsourcing team. Your team should be target driven. They should have the potential to drive more sales in less time. This can be done only by experienced and creative team. Experienced will always have solutions to problems and they know what causes problems.

As I have already mentioned, outsourcing companies target client satisfaction because that is their bread and butter.

10. Can India do it?

ABSOLUTELY YES! Outsourcing services to India has been a great success in the outsourcing market. Offshore outsourcing simply means India. People from across the globe outsource their services to India since it is cost effective and they find educated intellectuals in team as well as in management with very good experience. Your saving can be up to 40-50%. You can go through the points I mentioned in the point # 8.

Hope the above suggestions were useful. If yes, do not think twice anymore. Find your right outsourcing associate, outsource your services and enjoy the benefits.

Now let us move to the second set of people who think twice to outsource.

II. Experienced or one who has outsourcing experience- (probably bad outsourcing experience)

There are a very few instances that an experienced customer thinks twice to outsource. It is because this customer must have gone to a wrong shop for shopping.

Few reasons for an unhappy outsourcing experience:

1. Quality

2. Productivity

3. Turnaround

4. Communication

5. Professionalism

1. Quality: You must have reached a team and management or an outsourcing partner who are not skilled at work or professionals. There must have been misunderstanding & miscommunication during the process of understanding the requirement, no proper training and there must have been no trial run done before starting the project. At times customer has been promised what is not exact and was forced to believe impossible.

2. Productivity: You must have faced an instance where your outsourcing partner did not meet the required productivity and they come up with excuses again and again, at times with multiple other problems. This must have been time consuming and waste of money.

3. Turnaround: During the initial stage of the project, you must have given some timeline for the project completion or a target deadline. This target was not met and your outsourcing partner must have asked you for extra time which is simply impossible when its time to deliver the output expected.

4. Communication: During the time of requirement capture, you must have spoken to your outsourcing partner and was impressed by their communication skills but later stages when the deal was closed and the work started, your point of contact must have been changed and very poor at communication skills where he/she could not understand or communicate properly. This must have ended in a mess and your energy must have totally been in vain.

There are also instances where you are unable to reach your outsourcing team on-time even after calling them several times, emailing them or sending chat messages. This can be due to time difference between you and your outsourcing team or your team is unprofessional.

5. Professionalism: You must have noticed unprofessionalism with your outsourcing team by their quality, productivity, turnaround and communication. You must have noticed your team that they are not willing to change or correct themselves when you correct them or when you need some changes in your project. All these points prove unprofessionalism which turnout to be your waste of effort, time and money.

My suggestions to you on the above 5 points.

1. Quality: Please ensure you contact experienced companies. Always opt for a trial run. This way you will know the quality, turnaround, productivity, communication and overall professionalism. You should ensure your outsourcing partner and your team are educated. They should be minimum college graduates.

2. Productivity: You can test the productivity by giving them small orders initially. Once your outsourcing team proves to handle the volume, you assign a better project. Always test.

3. Turnaround: As I have mentioned, you can always ask for a free trial where you can judge the turnaround speed. You could also have clauses in your agreement saying, if the assigned turnaround is met on your desired timeline, then you would pay. This indeed works.

4. Communication: Since not all the companies have graduates working in the team, you may face this issue. Please ensure your team players are all graduates, efficient, committed and are strong at communication skills. Know your teams before you sign up a contract. You can ask for a single point of contact from the company.

5. Professionalism: Consider all the above suggestions and if you think your team has most of the good qualities, please go ahead.

This way you can choose right outsourcing companies or company and be benefitted by outsourcing. This time choose the right company.

In my experience everyone who outsourced and who has successfully completed their projects, they always want to outsource again when they have a new project. They also refer the outsourcing company to their contacts. They have definitely understood the benefits.

I wish you all a successful and profitable experience.

Hope this article was useful for you. Let me know your comments.

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