Consequence of not choosing the right outsourcing provider

Working with the wrong outsourcing provider is at the root of many problems that we observe in outsourcing. Sometimes, it’s not the problem that creates an outsourcing disaster; it is the outsourcing provider inability to correct it.

For example: A few years back, Virgin’s Internet booking, reservation, check-in and boarding system and other mission-critical applications abruptly crashed. This was for the second time in three months. Virgin’s IT outsourcing provider quickly traced the cause of the latest failure to a failed disk drive. Under its contract with Virgin Air, the IT outsourcing provider was obligated to resolve mission-critical system failures within a “short period of time.” It took nearly 24 hours, during which time the FAA grounded all Virgin flights, leaving more than 50,000 passengers stranded and frustrated.

In hindsight, the IT outsourcing provider’s decision to attempt repairs on the bad unit, rather than switching in backup hardware, was not the wisest use of time and resources.

The Virgin/ the IT outsourcing providers- crisis highlight one of the key risk factors when using Software-as-a- Service (SaaS) vendor: being subject to issues occurring on the vendor’s hardware at remote locations. With Cloud-based outsourcing, the reason for your downtime could lay halfway around the world.

An outsourcing model enables many companies, primarily those that are small or mid-size, to become more competitive. However, this business model carries risks that, unmitigated, can have a significant impact on a company’s financial performance and long term success. Implementing solutions to these common mistakes is not trivial, cannot be rushed, and must be pursued with a strategy in mind. In the end, outsourcing can be successful if you have the right strategy, processes, people, and tools to maintain control of your business.

Contact Techmode Outsourcing if you don’t want to see your company facing outsourcing failure. Techmode offers effective outsourcing services equipped with technology, resources, tools and methods honed and validated during its years of experience. We truly define our customer’s requirements, measure how they are being met and try to exceed them.