| ext">Offshore outsourcing has witnessed tremendous | | | | project. |
| increase in the recent times. However, as much as the | | | | Its good to have Complex Contracts |
| industry has flourished in the recent times, so has it | | | | Considering the potential market risks and to make |
| given rise to several myths and misconceptions about | | | | sure the business is protected against a range of |
| itself. Often vendors and clients harbor false | | | | possible circumstances, business owners seek to draft |
| assumptions about how the process should work and | | | | complex contracts. Outsourcing is not a one-time |
| this paves way to misunderstandings and conflicts in | | | | transaction, rather it is an ongoing liaison. However, that |
| the future. And this can have severe impact on the | | | | doesn't real work for any benefit and on the contrary |
| outsourcing projects. | | | | ends up straining the relationship between the client |
| Here are some common myths that you should | | | | and the service provider.. Rather, companies should |
| understand so that you can overcome them | | | | write contracts that make sure that both the parties |
| successfully. | | | | understand their roles and responsibilities. |
| Outsourcing gives everything! | | | | Contracts don't really matter |
| Offshore outsourcing is a powerful strategy with its | | | | This is the most dangerous misconception anyone |
| main objectives being cost reduction, process | | | | could have. Contracts are the most crucial part of an |
| enhancement, increase in productivity, improved | | | | outsourcing deal. Companies sometimes rush into an |
| efficiency and so on. However, when clients outsource | | | | outsourcing deal with just a memorandum or letter of |
| their work, they expect to achieve all of the benefits | | | | intent. However these documents don't address the |
| which turns out to be quite irrational. For example, if | | | | specific details of the project like a formal contract. |
| you are focusing only on cost cutting, you might as | | | | And because of this both parties are unable to reach |
| well expect the quality of services to be of the same | | | | a conclusion if they happen to get into a disagreement |
| worth. Whereas if you want to enhance the efficiency | | | | regarding the functioning of the project. |
| of your operations, it would be cost you comparatively | | | | Service Provides can guarantee total Insurance |
| more. | | | | One of the most debated issues in offshore |
| Outsourcing Services is like Purchasing Products | | | | outsourcing projects is the sharing of risk between the |
| Though it may seem as simple as that, the truth is far | | | | clients and the service provider. This often leads to |
| from it. Offshore outsourcing involves a lot of | | | | heavy duty negotiations and strained relationships. |
| transaction costs pertaining to finding a service | | | | Clients expect the service providers to bear the |
| provider, negotiating a contract and so on. In addition, | | | | greater liability for failure and thus end up believing that |
| there are costs of transferring process from one | | | | outsourcing risk can be done away with. Though |
| place to another. These are not hidden costs but | | | | service provider should have penalties, they cannot be |
| something you should evaluate beforehand and make | | | | held accountable for all the risks pertaining to |
| an estimate while calculating the overall costs of the | | | | unforeseen circumstances. |