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Outsourcing Management – Mistakes to Avoid

Outsourcing has almost become an essential part of business operations in so many organizations today. Outsourcing management is one of the regular company practices. When a company outsources its management functions, such company is taking advantage of outsourcing benefits to enhance its opportunity for innovation. Management outsourcing is an excellent way to supplement inadequate in-house management capacity.

Therefore, as a company takes advantage of external knowledge continuously through outsourcing, that company is trying to improve its capacity for innovation, among other benefits.

Management is the life-wire of any business or organization. Therefore, you need to be very careful when outsourcing the management functions of your organization. If you make the wrong choice, things will definitely go wrong. There are critical errors you must avoid when embarking on outsourcing management.

Mistakes to Avoid in Outsourcing Management

Management is quite vast, whether it is human resource management, IT management or other aspects of management, you need to ensure that professional hands are employed. This is especially true about IT management outsourcing. Also, the terms of the contract should be spelt out clearly. For instance, when IT management is involved, ensure that you do not leave the source code in the possession of the vendor – this should be clearly stated in the contract. The contract should be adaptable and flexible in order to meet with any likely business changes.

Here are common mistakes to avoid when outsourcing management;

Terms of the contract should not be vague; they should be clearly spelt out. For instance, in the case of the IT management outsourcing mentioned before, ensure that your company keeps the source codes of programs and software developed by the outsourcing vendor. Also, spell out other expectations clearly in the contract terms.

Communication breach: this is one of the common mistakes that companies who outsource their organizational operations make. Don’t forget that some of the outsourcing vendors even stay oversea. Ensure that you keep the communication line open 24/7 to track results.

Selection process should not be left to sheer luck; embark on extensive research to find out qualifications, industry expertise and total portfolio of the outsourcing management company. This will help you in making informed decision on which outsourcing company would match your company’s management needs. You have to make sure that the company has what it takes to handle your organization’s management needs. Such company should meet industry standards in their mode of operation in order to deliver the best service.

Also, meeting deadlines is one of the essential aspects of outsourcing contracts. When you don’t spell out deadlines, you may experience some laxities. So, make everything as clear as possible and be sure that the management outsourcing company is ready to abide by your expectations. 

Daven Michaels is an award-winning outsourcer and author of the book, ‘Outsource This!’ Daven has been honored more than any other individual or outsourcing organization. You can get more information on outsourcing by visiting


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