Don’t be cheapBy Mark Atterby Cost reduction is a major allure for organisation’s to outsource. But being purely cost focused can be more costly in the long run. Cheap is not always better, particularly when it comes to selecting an outsourcing provider. One of the major causes of failed outsourcing relationships is not being able to identify the right provider for the organisation’s outsourcing requirements. Being so focused on price that you neglect other factors is a road to ruin. It stands to reason that providers who charge bottom of the barrel prices are likely to be running sweatshops that are exploiting desperate and underpaid workers. As well as the likely damage to the client’s reputation if reported in the media, the quality of the work will be low, and there may be other issues around security, mismanagement of resources, environmental etc . Good service costs money! Customers expect a certain level of service from an organisation and when the actual experience doesn’t match their perception they become unhappy with the organisation. For example, if you were going to a five star restaurant for an expensive meal to celebrate a special occasion, the level of service you would expect would be very high compared to going to a fast food outlet for lunch, where your service expectations would be very low.
Good service costs money! Customers expect a certain level of service from an organisation and when the actual experience doesn’t match their perception they become unhappy with the organisation.