Avoiding Outsourcing Meltdown

Filed in archive Outsourcing Issues on August 31, 2007

Outsourcing Meltdown is very easy to prevent provided that you know it happens and at the back of your mind, you are expecting it.

The article which I mentioned before entitled New China Syndrome: When outsourcing turns toxic also suggested some tips in order to avoid outsourcing meltdown.

Some of these tips includes the following:

Be careful not to become obsessed with price - There is a big difference between being cost effective in your strategy and management practice and compulsively cheap.

Set and enforce high safety and quality standards - Make sure contracts, oversight, and control mechanisms support them.

Invest in know-how - Keep up management acumen and quality-control capabilities related to outsourced processes by investing in training and knowledge development.

Be accountable - The reputation of your products and your brand and meeting the customer expectations is solely your company's responsibility.

If you want to avoid such pitfalls, reading this would really be necessary.