What To Do When You Realize You Made A Mistake Outsourcing Offshore
Over the past twenty to thirty years, one of the most common trends in business was to outsource products or services offshore. Although it started with manufacturing products in nations where the products could be made cheaper due to labor costs, even common services such as IT have now been outsourced. When businesses make the decision to outsource a product or a service, one of the things that are top of mind is cost. However, even though the top line cost of many products and services are, in fact, less costly overseas there are other costs associated with outsourcing products and services. Many businesses realize this too late, and then after the fact realize they made a mistake outsourcing their products.
Research Before the Decision
The best way to prevent mistakes in moving production or services offshore is to do the research beforehand. There have been enough products and services in a variety of different industries to move overseas that there should be enough data points for anyone to make an informed decision. It is important for any business to keep the long term in mind when making any business decision, and this is especially true with moving offshore with products or services.
Businesses must also take a customer view when moving anything offshore. Although it may make a company more profitable to move their customer service team overseas, they must look at what the customer response will be when they speak with someone thousands of miles away. If outsourcing the customer service will hurt the brand name of a company and hurt customer retention, it may not be worth it in the long run. In addition, customers in a certain country are more loyal to companies that keep their manufacturing and services within the borders of their own country.
What To Do When A Mistake Is Made
With all of the decisions that must be made in a business environment, it is inevitable that mistakes will be made. When a mistake has been made in an offshore decision, there are several steps a business can take to mitigate the damage for their company and their customers. First of all, a company should come out and admit their mistakes to both their employees and their customers. Nothing is better for a company trying to repair their image than to come out and admit an honest mistake.
In addition to admitting the mistake, a plan must be put in place to bring the production or services back to where it was originally. The plan should be laid out to both customers and to employees so that they can understand the time line of when the changes will be made. By putting the plan out in the open, those that are invested and working in the business will have higher morale and a sense of direction when they know the final plan for rolling out the changes.