What are the Potential Problems of Business Process Outsourcing companies?

Before you get carried away by all the hype about how great business process outsourcing is, ask yourself: what problems can business process outsourcing do to my organization? Hiring Business process outsourcing companies to do your organizational tasks is no joke, and can radically transform your organization.  Therefore, you should weigh the benefits versus the costs of outsourcing.

Job Losses and Unemployment

What would your employees feel if a colleague from another department gets laid off because of outsourcing? This picture has been rather prevalent among organizations resorting to offshore outsourcing. In a manner of speaking, business process outsourcing companies take away the jobs of many employees in an organization.

These job losses are especially common in the US, as many companies are now turning into outsourcing as a way of cutting their costs and speeding up their work. If these job losses are sewn together, one can say that outsourcing has in a way threatened the economic stability of countries like the US. This is especially true for white collar jobs. Before looking into outsourcing as a viable option for your company, ask yourself: will it cause massive job losses and resentment toward my organization?

Lack of Efficiency

When you outsource, you are literally letting these business process outsourcing companies take over a particular task that your organization usually performs by itself. Yes, doing so may increase organizational efficiency, but it can also backfire and cause decreased efficiency.

For instance, letting a third-party company take over a particular business function may result to a systematic failure. The employees inside the organization may resist the change that is happening. Instead of helping, they result to deliberately sabotaging the organization. This is definitely a possible problem that outsourcing can create.

Intrusion of Privacy

Once you let business process outsourcing companies work on your organization’s tasks, you will inevitably have to share to them private pieces of information. Information you will have to disclose to them may include sensitive ones. These include information on your employees’ demographics, new products, and planned services.

Because you will have to let other companies intrude in your organization’s privacy, you better make sure that you hire an outsourcing company that you can trust. Make sure that the organization is credible. Building trust with another organization may take considerable time.

Make sure you don’t readily disclose information without asking why the outsourcing company needs it for. Remember not to hand information without knowing why it is needed by the BPO company in the first place. GP

Posted in BPO Problems  on September 23, 2008 - 3:15 am by admin  |